Statement of Employee Profit-Sharing Plan Allocations and Payments

T4PS Slip

It is the information slip used by employers to provide employes with a statement of employee profit-sharing plan allocations and payments.

A profit-sharing plan is an arrangement where an employer pays a portion of the business profits to the employees. The employer is required to issue a T4PS slip for any profit distribution to employees during the year. This amount is reported in Box 35 of the T4PS and is treated as employment income, which should be reported on line 10400 of the T1-General.

The amounts payable by the employer are usually calculated based on profits (e.g., 5% of the company's defined profits in the plan), but they can be calculated on any other basis as long as they are paid out of profits. The employer's payments must be made to a trustee in trust for the benefit of the employees or former employees.

For further information please contact Taxtron Support at 416-491-0333 or visit www.taxtron.ca