Hi,
Wondering if anyone can clarify, I contribute to a group RRSP through payroll deductions. When I file my taxes, it asks for RRSP contributions, when I put the amount of payroll contributions on my slip my refund increases - this seems wrong like I’m claiming double contributions. Are these payroll deductions listed anywhere else on my T4, or should I just not include them on my tax return?
Thanks!
When you enter your RRSP contributions, the software automatically takes the maximum amount that you can deduct. You can change the amount that you are deducting in the RRSP section.
Thanks for the reply, maybe I should have worded my question better.
With group RRSP payroll contributions I understand I make an instant tax saving per cheque, but then could I also make another tax saving at the end of the year when filing taxes? Or have these payroll contributions been accounted for and I’m adding them again to claim twice?
The contributions you made through payroll come from your T4 slip, and don't need to be entered again. If you enter your own contributions, then those will combine with the T4 contributions in the RRSP section.
This is the part I don’t understand, which box of my T4 are these contributions?
All the information I can find online says box 20 is for RRP contributions and specifically not for group RRSPs.
My box 20 is also considerably lower than the contributions that I made.
This is the confusing part!
As per this CRA guide for employers: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4120/employers-guide-filing-t4-slip-summary.html#P289_26134
Box 20 – RPP contributions: Report the total amount the employee contributed to a registered pension plan (RPP). Include instalment interest (for example, interest charged to buy back service).
If your RRSP contributions are not on your T4 slip, then you should have gotten a Group RRSP Contribution receipt.
Yes I have a contribution receipt, and that’s the issue. I thought I was getting an instant lowering of taxes through payroll deductions, and now I enter my RRSP deductions through the software and my refund increases significantly. So was I not getting a tax deduction per pay period, and now I am getting it? Or am I getting a small reduction per pay period, and the full reduction now?
You can only get RRSP deductions on your income tax return, not on your pay cheque.
“You can deduct the money you put into your RRSP from your taxable income, which may reduce the amount of tax you have to pay when you file your return. You also get an immediate tax break when you have your contributions taken straight off your pay.” This is from the manulife website.
For the record I think I’ve figured it out, even with immediate tax breaks I still paid more tax than needed, so there is an additional refund now when filing taxes.
I have a similar question regarding to how to report the group benifits for the RRSP.
I basically contribute 4% of each of my payroll to rrsp and my company matches the same amount upto 5000 per year.
In year 2022, I contributed RRSP from payroll and I also made a lumpsum pay for 3000 before end of Feb,2023.
I found on CRA that for my 2023 RRSP calculation was like this
| 2022 RRSP deduction limit | 10000.00 |
| Minus Allowable RRSP contributions deducted in 2022 | − 3,000.00 |
| Minus Employer contribution to PRPP for 2022 | − 0.00 |
| Equals Unused RRSP deduction limit at the end of 2022 | 7000.00 |
| 18% of 2022 earned income of 50000.00 (Maximum of 30,780.00 allowed) | 9000.00 |
| Minus 2022 pension adjustment | − 0.00 |
| Minus 2023 prescribed amount for connected persons | − 0.00 |
| Equals Additional deduction limit based on 2022 | 9000.00 |
| Unused RRSP deduction limit at the end of 2022 | 7000.00 |
| Plus Additional deduction limit based on 2022 | + 9000.00 |
| Minus 2023 net past service pension adjustment | − 0.00 |
| Plus 2023 pension adjustment reversal | + 0.00 |
| Equals 2023 RRSP deduction limit | 18000 |
***Please note that some numbers were modified by me for privacy reasons
It looks like for year of 2022, I only contribute 3000, does it mean in the T4 slip, my RRSP contribution was not included? My box 20 was empty. Also, I got RRSP tax receipts from my group retirement account which indicated that I did make contribution. Should I spearately report that in the turbotax software? Thanks
I can’t speak to your situation unfortunately, but I would recommend being cautious of any of the answers provided previously in this post. I ended up clarifying my questions with a tax accountant.
Best of luck to you!
@CanadaTaxSucks You only report what you see on the T4 slip in the T4 area. When you get to the RRSP you only enter the amount of contributions included on the RRSP slip. Your calculations are unclear. Please see our TurboTax video for clarifications: How do I enter RRSP contributions in TurboTax Online?
NOTE: The contributions made from beginning of March 2022 to end of February 2023 are included in the 2022 tax return. Contributions made from beginning of March 2023 and end of February 2024 are included in your 2023 tax return.
Thank you for choosing TurboTax.
This issue has caused a lot of confusion before i explain i will define some important tax return terms and box Numbers on your T4;
Group RRSP = Employee contributed RRSP (pre tax) + Employer Matched RRSP (pre tax)
Box 14: Total pre tax Income (Income before tax = Sum of pre tax income on all your pay slip for the year + Bonus pay + employer matched RRSP). Note that employer matched RRSP is considered as an income to an employee.
Taxable Income: This is the amount of income subject to tax, after deductions (such as RRSP). Note that there is no line number on T4 slip for taxable income, the taxable income can only be determined at tax return stage.
Pay slip taxable income: Pre tax income on your pay slip - Employee contributed RRSP pre tax
Pay slip paid tax= Tax paid on Pay slip taxable income
Box 22: Income tax paid on all pay slip taxable income for the year (Sum of pre tax income on all your pay slip for the year - sum of Employee contributed RRSP for the year)
Box 22: Income tax paid = sum of Pay slip paid tax for the year
Tax deductions: are amounts you subtract from your total income, making your taxable income lower. This means you’d be charged taxes on a smaller amount of income (https://turbotax.intuit.ca/tips/popular-canadian-tax-benefits-deductions-and-credits-in-2023-14180). Note that RRSP are tax deductible
When you upload a T4 to turbo tax it will read box 14 and box 22, if you have contributed to group RRSP it will appear that you have underpaid your taxes as turbo tax does not have information on your Pay slip taxable income, therefore you have to input your group RRSP contribution (Employee contributed RRSP + Employer Matched RRSP ) as a deduction on turbo tax. Remember that your employer have included Employer Matched RRSP as an income on box 14. You can always try a dry run or simulation by uploading only T4 without any deduction or credit and you will see that it appears that you have heavily underpaid your taxes. (you can use this turbo tax quick calculator https://turbotax.intuit.ca/tax-resources/canada-rrsp-calculator.jsp)