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Ali Raza Jaffer, Chartered Accountant Mississauga, Greater Toronto Area

T4 & T5 strategies

Understanding T4 and T5 Slips

T4 and T5 slips are vital tools for recording income taken out of a business, ensuring compliance with CRA regulations and providing clarity in financial reporting. Whether through salary or dividends, accurate reporting is key to managing your finances effectively.

  • T4 Slips: Record all salary payments, including wages, bonuses, and commissions, while accounting for deductions like CPP, EI, and income tax. Salaries are also deductible expenses for the business.
  • T5 Slips: Track dividend payments made to shareholders. Dividends are taxed personally, with the benefit of the dividend tax credit, and do not require CPP or EI deductions.
Properly balancing salary and dividends can optimize tax efficiency and support strategic financial planning. At AR Jaffer CPA, we provide expert guidance in preparing T4 and T5 slips, ensuring accuracy and compliance. Let us help streamline your financial reporting so you can focus on growing your business. Contact us today to get started!