What Is A T4 Tax Slip?
WHAT IS A T4 TAX SLIP?
A T4 tax slip is issued by your employer to indicate your gross income before deductions such as CPP, EI, etc.
WHY IS IT NEEDED?
T4’s are needed for salaried employees to confirm income earned outside of your salary. For example, your employment letter might say you have a salary of $75,000 / year.
You get a couple of overtime shifts per year and a bonus. Your actual income is $81,000. In order for the lender to accept your higher income amount (qualify for more mortgage), they will use a 2-year average of your T4’s.