How to create T4's for employees who move to a different province during the year - AB & ON

Please advise on the procedure to create T4's for employees that moved from Alberta to Ontario during the calendar year. Should I create 2 employee profiles, one for AB and one for ON?

  • I have not dealt with payroll for people who moved in the year. However, it is my understanding that the reporting is based on the employees place of residence on December 31 of the reporting year. For your sake I hope someone can confirm this or refute it with better information.

  • T4's should ALWAYS be issued based on where the employee WORKED, regardless of where they live.  So, if you only operate in Alberta, you will only issue an Alberta T4 slip, regardless of where the employee lives.

    If you have operations in both Alberta and Ontario, then you will need to issue 2 T4 slips - one with province of employment AB and one with province of employment ON.  Unfortunately, the only way to do this is to have 2 employee profiles, as you suggest.  The trick here is that Sage does not realize that the 2 employees are the same person, so you will have to watch yourself for CPP and EI maximums.

    p.s.  Alwyn is correct that the place of residence on December 31 is important - but not for you as the employer.  The province of residence at Dec 31 determines which province's tax return the employee has to file.

  • Thank you for clarifying. That makes good sense and I am learning for the future.

  • Thank you for the helpful answers to my question. I went down the path of creating a separate employee profile and got stuck on how to transfer vacation owed. Sage didn't allow me to enter a carry forward on a new profile. Any suggestions on how to manage the vacation accrual would be appreciated. Thanks!