How to set up a Registered Pension Plan so that the Employee and Employer portions are reported in Box 52 on the T4 and Box 50 still only displays the Employee's portion.
Set up the followingcodes. The figures used in the setup beloware just an example.
Theusers would like the following displayed on the T4:
- T4 Box 20 = $ 9.90
- T4 Box 52 = $ 21.45 (Both the Employee's and Employer's portion)
1. Benefit Code: This Benefit code is used to update the T4 box with the Employer's portion.
-Income Tax applicable = Yes
- Enter the Employer's contribution amount in the amount field ($11.55).
- Further ID = N/A
-Assigned to the Employee
2. Deduction Code: This is an Offsetting deduction for the Benefit Code, set up in step 1.
- The Further ID = Pension Adjustment
- Before Taxes Deduction = Yes
- The amountwill be the same asthe amount in Benefit 1 ($11.55).
-Enter 52 for the T4 Extra box number.
- Link thisDeduction code to Benefit code 1.
3. Deduction Code: This Deduction code is for the employee's portion of the pension plan.
- The Further ID = Pension
- T4 Primary box = 20
- Income tax applicable = Yes
-Enter the amount of the employee's deduction amount ($9.90).
- Assign this deduction to the employee.
4. Benefit Code: This Benefit code will update box 52 of the T4 for the Employee's portion.
- Income Tax applicable = No
- Further reference = N/A
- Enter the amount of the employee's portion ($9.90).
- Assign this Benefit to the employee.
5. Deduction Code: This is an Offsetting deduction for the Benefit Code, set up in step 4.
- Before Tax Deduction = Yes
- Further ID = Pension Adjustment
-T4 Extra box = 52
- The amountwill be the same asthe amount in Benefit 4 ($9.90).
- Link thisDeduction code to Benefit code 4.
This article was TechKnowledge Document ID:29859
Article ID: 859112 - Last Review: Mar 3, 2016 - Revision: 1