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Employer refuses to give me my T4 slip unless I pay them

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  • Sep 23rd, 2015 10:43 am
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Newbie
Jun 18, 2009
30 posts
Etobicoke

Employer refuses to give me my T4 slip unless I pay them

For all of 2012 my employer has been paying me as an independent contractor. They have not deducted any EI, CPP or personal taxes. It has been a straight check.

There was a ruling from the CRA that I am indeed an employee and NOT an independent contractor.

I have now asked for my 2012 T4 slip and they have told me that in order to create the T4 slip they need to remit the amount they should have deducted on my behalf to the CRA. They want me to cut them a check for $2500 and then they will give me my T4 slip.

I have talked to my employer and told them that I find it strange that I need to cut them a check in order to receive my T4 slip. They told me that's the only way they can generate the slip. That they need to remit the amount they should have deducted to cra in order to create it.

I have called the CRA several times and they all agree that the employer can not hold my T4 for any reason. However, they were not able to link me to anything on the CRA website that explicitly states that an employer can not ask for money in order to generate a T4 slip. They however told me that I can still file my taxes without a T4 as long as I send in all my pay stubs, the ruling letter from CRA and a note explaining the situation.


What I want to know is if there is anything in writing I can show my employer that states that they can not ask me for payment in order for me to receive my T4 slip?

I have no issue paying the CRA my taxes but I certainly feel uncomfortable cutting my employer a check in order to receive my T4 slip. I would much rather pay the CRA directly.

Any thoughts would be greatly appreciated.

Thank you,
24 replies
Deal Addict
User avatar
Jan 1, 2009
2356 posts
13642 upvotes
North York
Go ahead and file as the CRA had instructed you - useless for you to go back to the employer - the CRA will probably step in and wil ask them to fork in the deductions that should have been taken from your pay but the employer should fork it from his own pocket as it is HIS fault. Good luck!
Member
Feb 18, 2012
452 posts
61 upvotes
Toronto
You do need to pay your employer what they would have deducted from your regular pay cheques. They, however, cannot make you pay for penalty and interests that have been accrued for not remitting income tax deduction and employer's portion of payroll taxes. Make sure that the amount that they ask you to pay is strictly related to income tax deduction and employee's portion of payroll taxes.
Deal Fanatic
User avatar
Oct 23, 2003
5535 posts
247 upvotes
So they shouldve deducted your cpp and ei, and taxes from you since youre an employee. But they treated you as a contractor, which now has been discovered as not to be the case.

What theyre asking for is for you to pay your taxes from your pay cheques in order to receive a T4. You basically owe the government what you didnt pay. As far as your employer is concerned, theyre done. They paid you in full. If you want a t4 from them, you have to pay them the government taxes you didnt have deducted in the first place, have them PAY the government on your behalf but under their company name, and use that process to generate a t4.

Either that or youre a contractor and you get a t4a and you do your own taxes and pay the government 2500 directly. Same difference based on your info.
Deal Addict
Aug 27, 2011
3043 posts
326 upvotes
Toronto
If you're not considered a contractor and you want the company to issue you a T4, who is going to pay the EI and CPP and taxes that show up on a T4?

That's why they are asking for some money - which should only be the EI, CPP and Taxes that would show up on the T4 for the amount of money you were paid.
Deal Addict
Nov 23, 2003
1457 posts
167 upvotes
Sounds right. If you are to be treated as an employee and receive t4, employer needs to get those deductions from you.
[OP]
Newbie
Jun 18, 2009
30 posts
Etobicoke
Buggy166 wrote:
Mar 26th, 2013 9:12 pm
So they shouldve deducted your cpp and ei, and taxes from you since youre an employee. But they treated you as a contractor, which now has been discovered as not to be the case.

What theyre asking for is for you to pay your taxes from your pay cheques in order to receive a T4. You basically owe the government what you didnt pay. As far as your employer is concerned, theyre done. They paid you in full. If you want a t4 from them, you have to pay them the government taxes you didnt have deducted in the first place, have them PAY the government on your behalf but under their company name, and use that process to generate a t4.

Either that or youre a contractor and you get a t4a and you do your own taxes and pay the government 2500 directly. Same difference based on your info.
But I don't understand why they would need a payment in order to generate a T4. Shouldn't the cra be asking me for my portion of taxes?
Deal Addict
Aug 21, 2007
4572 posts
207 upvotes
Markham
How it works is that employer deducts at source (when paying you) for CPP, EI and income taxes. They cut it from your cheque and send to the govt on your behalf. They have to match CPP and EI deductions.

If they go and create a T4, they will immediately be asked to submit the calculated payroll deductions to the CRA for your income, which includes your portion of the payroll taxes comprising the actual majority of the amount that has to be sent in, so they basically want you to first repay them your portion of taxes before they move forward - it makes some sense b/c once they submit the T4, they are liable for the payroll deductions and they can't not pay even if they don't have your portion to send in.

I hope that makes sense.
[OP]
Newbie
Jun 18, 2009
30 posts
Etobicoke
I was able to find this on the cra website.

"If the worker is an employee (employer-employee relationship), the payer is considered an employer. Employers are responsible for deducting Canada Pension Plan (CPP) contributions, EI premiums, and income tax from remuneration or other amounts they pay to their employees. They have to remit these deductions along with their share of CPP contributions and EI premiums, to the Canada Revenue Agency.

An employer who fails to deduct the required CPP contributions or EI premiums has to pay both the employer's share and the employee's share of any contributions and premiums owing, plus penalties and interest. For more information, go to Payroll."

http://www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-e.html


Does this mean the employer is liable for my portion of deductions?
Member
Nov 16, 2010
274 posts
34 upvotes
Scarborough
You are working for a "cash" job base on your description. You didn't get any money deduct from your paycheck. For example, if you make $15*40 a week. You keep the entire $600 in the paycheck. You didn't get any money deduct from your paycheck for CPP, EI.

You want a T4 slip but don't want to pay your deductions that doesn't work. The T4 slip is the tax that you pay to rhe government on earnings not your employer.
Newbie
Sep 15, 2012
2 posts
0
jmds wrote:
Mar 26th, 2013 10:26 pm
I was able to find this on the cra website.

"If the worker is an employee (employer-employee relationship), the payer is considered an employer. Employers are responsible for deducting Canada Pension Plan (CPP) contributions, EI premiums, and income tax from remuneration or other amounts they pay to their employees. They have to remit these deductions along with their share of CPP contributions and EI premiums, to the Canada Revenue Agency.

An employer who fails to deduct the required CPP contributions or EI premiums has to pay both the employer's share and the employee's share of any contributions and premiums owing, plus penalties and interest. For more information, go to Payroll."

http://www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-e.html


Does this mean the employer is liable for my portion of deductions?

Yes technically they are. CRA went after them for the EI/CPP/taxes they should have withheld from your pay cheques + employer matching amounts. That is why your employer is going after you for them. Are you going to keep this job? If so, you may want to consider paying them back the amount you owe the government. If not, you might be able to call CRA and ask them what the T4 slip they have on file for you. And use this info to file your personal tax return.

Good luck!
Member
Feb 18, 2012
452 posts
61 upvotes
Toronto
jmds wrote:
Mar 26th, 2013 10:26 pm
I was able to find this on the cra website.

"If the worker is an employee (employer-employee relationship), the payer is considered an employer. Employers are responsible for deducting Canada Pension Plan (CPP) contributions, EI premiums, and income tax from remuneration or other amounts they pay to their employees. They have to remit these deductions along with their share of CPP contributions and EI premiums, to the Canada Revenue Agency.

An employer who fails to deduct the required CPP contributions or EI premiums has to pay both the employer's share and the employee's share of any contributions and premiums owing, plus penalties and interest. For more information, go to Payroll."

http://www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-e.html


Does this mean the employer is liable for my portion of deductions?
The employer is liable for both employer's and employee's taxes in the sense that the CRA will go after the employer, not employee, to collect the total amount. And in fact this is why you cannot pay those taxes directly to the government if you are an employee! You should also realize that the employer has a legal right to hold you liable for YOUR share of payroll taxes and deductions in this case.
Deal Addict
Dec 29, 2011
1805 posts
334 upvotes
Vancouver
The whole situation sounds messed up.

If you don't like the route your employer is proposing, you can file a case with an Ombudsman at Employment Standards and have them look into the matter.

End of the day, you took the job as an independent contractor; if you were informed this meant you would have to withhold your own CPP and income tax, then it is your responsibility now to cough it up. If the whole ploy was to trick you into joining as an independent contractor, and they did not properly inform you that you would be responsible for managing your own tax return, then that is something you can fight using an Ombudsman.

The question here is -- why was there a ruling to determine that you are in-fact an employee? And what grounds stipulated this outcome in the ruling?

From my understanding, I feel like you may have been hired under false pretense, so your case needs an Ombudsman to determine what the results should be. Just tell them something like - I spent all the money from my paycheck because I wasn't informed that the company wasn't paying my portion of the taxes, I've never been hired as an "independent contractor" before; I feel the company did this to save money from having to pay for EI and CPP; had I understood the situation in full detail, I would have requested the employer pay me more to cover the CPP/EI amounts that I would have to pay myself, I wouldn't have accepted such a low salary; from that perspective I feel I was negligently duped by the employer. And then the Ombudsman will hound your employer to pay those amounts, because that's the only hope they will have of recouping your tax dollars for that year.
Sr. Member
Sep 26, 2007
841 posts
18 upvotes
jmds wrote:
Mar 26th, 2013 8:42 pm
For all of 2012 my employer has been paying me as an independent contractor. They have not deducted any EI, CPP or personal taxes. It has been a straight check.

There was a ruling from the CRA that I am indeed an employee and NOT an independent contractor.

I have now asked for my 2012 T4 slip and they have told me that in order to create the T4 slip they need to remit the amount they should have deducted on my behalf to the CRA. They want me to cut them a check for $2500 and then they will give me my T4 slip.

I have talked to my employer and told them that I find it strange that I need to cut them a check in order to receive my T4 slip. They told me that's the only way they can generate the slip. That they need to remit the amount they should have deducted to cra in order to create it.

I have called the CRA several times and they all agree that the employer can not hold my T4 for any reason. However, they were not able to link me to anything on the CRA website that explicitly states that an employer can not ask for money in order to generate a T4 slip. They however told me that I can still file my taxes without a T4 as long as I send in all my pay stubs, the ruling letter from CRA and a note explaining the situation.


What I want to know is if there is anything in writing I can show my employer that states that they can not ask me for payment in order for me to receive my T4 slip?

I have no issue paying the CRA my taxes but I certainly feel uncomfortable cutting my employer a check in order to receive my T4 slip. I would much rather pay the CRA directly.

Any thoughts would be greatly appreciated.

Thank you,
How did the *ruling* from CRA come about that you are deemed an employee and not a contractor?

When did this happen? Did you notify your employer or did you continue invoicing them rather than going through their payroll?
[OP]
Newbie
Jun 18, 2009
30 posts
Etobicoke
TooSoonJr wrote:
Mar 27th, 2013 10:22 am
How did the *ruling* from CRA come about that you are deemed an employee and not a contractor?

When did this happen? Did you notify your employer or did you continue invoicing them rather than going through their payroll?
Thanks everyone for the responses. Greatly appreciated.


The ruling happened 2 weeks ago. The employer was sent a written notice. I filed a request for a ruling on my employee status.
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