One Payroll Run, Two Tax Forms: How Zoho Payroll Handles T4 and RL-1 Reporting for Canadian Businesses
Summary:
T4 and RL-1 reporting involves more than preparing two year-end slips. Quebec payroll requires accurate handling of income tax, QPP, QPIP and other applicable deductions throughout the year. The figures reported on these slips need to match the payroll records used to calculate employee earnings and deductions. Zoho Payroll brings these Canadian payroll calculations and year-end tax reports into one system. Xponential helps Canadian businesses set up Zoho Payroll, configure Quebec payroll requirements, and prepare the system for T4 and RL-1 reporting. With the right payroll setup, businesses have a clearer process for managing Quebec payroll and year-end reporting.
For Canadian employers, year-end payroll brings a familiar set of tasks: review the year’s payroll records, prepare the required information returns and provide employees with their tax slips. For businesses with employees in Quebec, there is an additional provincial reporting requirement alongside the federal T4.
A Quebec employee may receive both a T4 and an RL-1. The two slips report employment-related information for different tax authorities, and some of the amounts appear on both. Getting the payroll setup right throughout the year makes the year-end process much easier to manage.
Zoho Payroll supports Canadian payroll across all provinces and territories, including Quebec, and provides T4 and RL-1 tax reports as part of its Canadian payroll offering.
Why Quebec employees need a T4 and an RL-1
The T4 is the federal employment income slip used to report remuneration paid by an employer during the calendar year. The Canada Revenue Agency requires employers to issue T4 slips when the applicable reporting conditions are met.
Quebec has additional payroll requirements. Employees working in Quebec generally contribute to the Quebec Pension Plan (QPP) rather than the Canada Pension Plan (CPP), and Quebec has its own provincial income tax and Quebec Parental Insurance Plan (QPIP). Employers may also have payroll amounts to remit to both the CRA and Revenu Québec.
The RL-1 is the Quebec employment and other income slip. Employees who worked in Quebec during the year receive an RL-1 where applicable. Revenu Québec generally requires employers to file RL slips and the RL-1 Summary by the last day of February following the year covered by the slips.
The CRA has the same general last-day-of-February deadline for T4 information returns, with the next business day applying when the deadline falls on a weekend or recognized holiday.
T4 and RL-1: what employers need to know
The two forms cover related payroll information, but they are not interchangeable. Each reflects the reporting requirements of the relevant tax authority.
| Payroll information | T4 | RL-1 |
|---|---|---|
| Employment income | Reported | Reported |
| Federal income tax | Reported | - |
| Quebec income tax | - | Reported |
| QPP contributions | Reported where applicable | Reported |
| EI premiums | Reported | Reported where applicable |
| QPIP information | Reported where applicable | Reported |
| Taxable benefits and other amounts | Reported where applicable | Reported where applicable |
For employees in Quebec, QPP contributions are reported on the T4, while the RL-1 includes additional provincial payroll details. The T4 also includes specific fields for QPP contributions and PPIP insurable earnings. The payroll records need to reflect these amounts throughout the year.
How Payroll Records Help With Year-End Reporting
Year-end reporting begins with the information entered during each pay run. Employee details, compensation, benefits, deductions, and tax information all contribute to the payroll records used later for reporting.
Province of employment is particularly important for a business with employees in different parts of Canada. Quebec has its own income tax system and uses QPP and QPIP, so payroll calculations need to account for those requirements. Zoho Payroll’s Canadian payroll system calculates federal and provincial income taxes, CPP or QPP contributions, EI premiums, and QPIP.
The same applies when a business introduces bonuses, commissions, or other non-wage payments. Zoho Payroll supports tax calculations and withholding for bonuses, commissions, and other one-time payments as part of its Canadian payroll features.
This gives payroll teams a more consistent process throughout the year: employee information and payroll details are maintained in the payroll system as payments are processed, rather than waiting until year-end to assemble the information required for tax forms.
How Zoho Payroll supports T4 and RL-1 reporting
Zoho Payroll’s Canadian edition includes features specifically designed around federal and provincial payroll requirements.
Federal and Quebec payroll calculations
Zoho Payroll calculates federal and provincial income taxes and supports CPP/QPP, EI, and QPIP calculations. For Quebec employees, this provides the payroll calculations required for the province within the Canadian payroll system.
T4 and RL-1 reports
Zoho Payroll automatically generates T4 and RL-1 slips and provides year-end tax reports. Zoho’s documentation states that these reports include payroll information such as salaries and commissions.
Year-to-date payroll information
For businesses moving to Zoho Payroll during a calendar year, the system provides a Prior Payroll feature for entering payroll processed outside Zoho Payroll earlier in the year. Zoho states that importing this information helps maintain accurate year-to-date earnings, deductions and taxes and supports generation of year-end forms such as the T4.
This is particularly relevant during a mid-year payroll implementation, when the business already has payroll history that needs to be carried into the new system.
Employee self-service
Employees can use the Zoho Payroll Employee Portal to access their payroll information. Zoho’s Canadian documentation lists employee self-service as part of the product, and the employee portal provides access to payroll information and pay stubs.
Zoho Books integration
For businesses using Zoho Books, Zoho Payroll provides payroll-accounting integration. Zoho states that the integration connects payroll and accounting operations, while its Canadian feature documentation lists Zoho Books integration among the available integrations.
A practical year-end review
Payroll software handles many calculations and reporting tasks, but employers still need to review the information before completing their year-end filings.
For Quebec employees, the review should include:
- Employee name, address and Social Insurance Number
- Province of employment
- Total employment income
- Federal and Quebec income tax deductions
- QPP contributions
- EI and QPIP information
- Taxable benefits and other reportable amounts
- Bonuses, commissions and other payments
- Payroll adjustments made during the year
- Does the deployment model support the institution’s hosting and data-location requirements?
It is also useful to review employees who worked in Quebec for only part of the year. The CRA specifically provides T4 reporting instructions for situations where an employee worked both inside and outside Quebec during the year.
Where payroll implementation fits
Payroll also needs to work with the accounting system. For businesses using Zoho Books, the setup includes deciding how salary expenses, deductions and other payroll entries should be recorded.
Zoho Payroll integrates with Zoho Books, allowing payroll and accounting information to work together within the same Zoho setup. If the business already uses other Zoho applications, payroll can also be connected to the existing setup where needed.
Why Xponential Digital for Zoho Payroll in Canada?
Moving payroll to a new system involves more than setting up employee records. Payroll history, provincial requirements and accounting all need to be considered before the first pay run.
Xponential Digital helps Canadian businesses set up Zoho Payroll, move existing payroll data and connect it with Zoho Books. If Quebec employees are part of the team, the payroll setup also needs to reflect the requirements that apply to them.
As a Zoho Implementation Partner in Canada, Xponential works with businesses to get the payroll setup right from the start and make it fit with their existing Zoho environment.
FAQs
1. Do Quebec employees receive both a T4 and an RL-1?
Yes, where the applicable reporting requirements are met. An employee who worked in Quebec may receive both a federal T4 and a Quebec RL-1. The two slips serve different tax reporting requirements.
2. What is the difference between a T4 and an RL-1?
The T4 is the federal employment income slip reported to the CRA. The RL-1 is the Quebec employment and other income slip reported to Revenu Québec. Quebec-specific payroll items such as Quebec income tax, QPP and QPIP form part of the provincial payroll requirements.
3. Does Zoho Payroll support Quebec payroll?
Yes. Zoho Payroll’s Canadian edition supports Quebec and calculates federal and provincial income taxes, QPP, EI and QPIP. It also provides T4 and RL-1 tax reports.
4. Can one Zoho Payroll account handle employees in different provinces?
Yes. Zoho Payroll’s Canadian edition supports all provinces and territories, including Quebec. The payroll system applies the applicable federal and provincial calculations based on employee and payroll information.
5. Can Zoho Payroll generate T4 and RL-1 slips?
Yes. Zoho Payroll’s Canadian product documentation states that it generates T4 and RL-1 slips and provides year-end tax reports.
6. What happens if a business moves to Zoho Payroll during the year?
Zoho Payroll provides a Prior Payroll feature for recording payroll processed outside the system earlier in the year. This allows year-to-date earnings, deductions and taxes to be brought into Zoho Payroll for continued payroll processing and year-end reporting.
7. Can Zoho Payroll connect with Zoho Books?
Yes. Zoho Payroll supports integration with Zoho Books for payroll accounting. The Canadian product documentation lists Zoho Books among its payroll integrations.
8. Can Xponential help with Zoho Payroll implementation in Canada?
Yes. Xponential Digital helps Canadian businesses set up Zoho Payroll, move existing payroll data and connect payroll with Zoho Books. The setup can also account for province-specific payroll requirements, including those that apply to employees in Quebec.
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