What is a PD4R notice?
A PD4R notice is issued to you when there is a difference between the total remittances made in the year and the total of the reported amounts on the T4 type slips, such as the T4 and T4A.
Do you have a credit?
If you remitted more than the amounts reported on the slips, you will have a credit balance on your payroll account. A credit balance is not automatically transferred to the current year or refunded to you because you may have made an error on the T4 slips that requires amending. You must explain the credit balance by responding to the PD4R notice before the balance can be transferred or refunded.
Do you have a debit?
If you remitted less than the amounts reported on the slips, you will have a debit balance on your payroll account. A balance due remittance voucher is included with the PD4R notice in this situation.
Responding to a PD4R notice
You must respond to the PD4R notice and provide an explanation, even if a request has been made to correct the discrepancy.
Common causes of a PD4R:
- Taxable benefits miscalculation
- Example: Using the medical/health code for non-Quebec employees
- Incorrect CPP/EI deductions
- Example: Errors in calculating employee or employer contributions, such as ignoring age exemptions
- Data entry errors
- Example: Editing tax forms without editing remittances, incorrect year-to-date (YTD) totals
- Changes in business structure
- Change in business number/ remitting to incorrect business number
How can Wagepoint help?
Use our PD4R report to help you reply to the notice you received.
Go to:
- Reports
- Select the MORE tab
- Select PD4R Report
- Select the applicable tax year from the Year drop-down.
This report can be viewed on screen or exported to CSV. This report will show you the breakdown of remittances calculated in the application per payroll run.
Pro tip: Remittances will always automatically be calculated, but may not always be remitted, depending on the company's settings. We recommend you review the payroll invoice for any pay period of interest to see if an amount of Source Deductions was collected.
Learn more here: Tax deduction, CPP, and EI discrepancy notice (PD4R)