T4 Reduced EI

Updated: 2024-01-15

Prepare T4 slips with reduced EI rates in TaxCycle T4/T4A without creating a separate file:

  1. In the T4 section in the Info worksheet, enter the Reduced EI Account number and Reduced EI Rate.
  2. In the same section, choose whether you want all new slips to use the reduced rate by default. Setting this to Yes checks the Reduced EI? box on all new slips. If you choose No, you will need to check this box on each slip that is eligible for reduced EI.
    Screen Capture: Set Reduced EI options on the Info worksheet
  3. TaxCycle takes all slips with the Reduced EI? box checked and includes them in a separate T4Summary for reduced EI, which you can file separately:
    Screen capture: Reduced EI summary in the Prepare sidebar
  4. If you have a recipient who was only eligible for reduced EI for part of the year, check the Create a copy of this slip for part-year reduced EI? box on the recipient's T4 slip:
    Screen Capture: Create a copy of the reduced EI slip
  5. TaxCycle clones the slip so you will see a second entry for that recipient in the Prepare sidebar. If you delete the original slip, the cloned slip is also deleted. However, if you delete the cloned slip, the original slip is retained.
  6. On this second slip copy, certain fields—like the recipient contact information—on the cloned slip appear in non-edit, green text, meaning that you must return to the original slip to make changes to them. 
    Screen Capture: Second copy of the reduced EI slip
  7. When you go to file the T4 slips, you will notice a separate box in the Transmit sidebar for the Reduced EI slips. This means you must transmit these slips separately.
     Screen Capture: Transmit reduced EI slips separately