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What is Line 10100 Tax Return? What You Need to Know About?

Don’t have a good knowledge about Line 10100 tax return? Well, you will be happy to know you have landed on the right article that will solve all your queries by making you familiar with all the essential terms.

Let’s get started:

Why is Line 10100 Tax Return Important?

This line 10100 was formerly known as line 101 before the 2019 tax year. It is basically a line of your income return where the owner needs to show the income from all the employees engaged at your company’s service.

This employment income mainly includes salary, wages, commissions, bonus, tips, honoraria, etc. This income is usually shown in box 14 of the T4 slip.

Note that the net amount shown in line 10100 is an estimation of your employment income, not your total income. However, with the help of this tax return, you will get to know the exact amount that will go to the line 10100.

Here are a few points that show why this tax return is more than necessary:

  • Employment income is certainly the largest lag tax line item in the life of the most Canadians.
  • Verifies CRA logins & you may be asked to validate the quantity over the phone in case you call the CRA.
  • Make an accurate estimation of the Canada’s total employment amount.

Do T4 slips show all the employment income?
No, it does not show all the revenue that falls under the employment income criteria. For example, the earnings from the below-listed mediums will not be present on your T4 slips.

Check them out:

  • Veteran benefits
  • Net research allowance
  • Any kind of income earned in a foreign country
  • Clergy housing grants (if you are a clergy member)
  • Royals

So, for the above scenarios, you will not have to go into line 10100. Instead, they will be listed under other employment incomes, line 10400. This line basically includes the work payment plans that will not be present on a T4 slip.

Is There Any Difference Between Line 10100 & Line 101?

They are the same thing. In fact, line 10100 was formerly known as Line 101. Previously the CRA used to have 3 & 4 digit tax numbers, for instance, lines 101, 105, etc.

But with the starting of the 2019 tax year, all the old tax lines or codes have gotten swapped with 5 digit tax lines. And in most cases, the new codes were created by just adding “0” or “9” to the old version.

Let’s look at some of the examples for a better understanding of the scenario:

  • Employment income changed from 101 to 10100
  • Other Employment income changed from 104 to 10400
  • Publicly traded shares changed from 131 to 13199

Now, the question may arise, why did these changes take place? Well, maybe the higher authority people thought it as a better way to harmonize the entire numbering system or make it easier & convenient to add new tax lines in the upcoming days.

Who Must File the Line 10100 on Tax Return?

The good news is that not every Canadian has to file line 10100 on tax return. Instead, there are criteria of people who are obliged to file these lines on time without making mistakes.

Have a quick through the list to see if you also fall in this category on not:

  • Have employment incomes, for instance, earnings, bonus, tips, honoraria, gratuities & so on.
  • Other employment incomes.
  • Wage-loss replacement insurance plans earnings
  • Expenditures benefits from GST/HST & QST.
  • Guaranteed annual wage plan payment
  • Work or inventions
  • Employee profit-sharing payments
  • Group life insurance taxable payments from your previous employer

Usually, the employer is expected to subtract the tax charges brought under all the paycheques, which are then further submitted to the Canada Revenue Agency (CRA). If the amount is less than the desired tax amount, you have to pay more taxes for such scenarios.

The CRA will also pay you back if your employer subtracts an excessive amount from your salaries. So, there is nothing to worry about.

Remember paying your employment income tax is one of the biggest qualifications that open the door to receiving several government benefits in Canada. In contrast, not paying these incomes will attract penalties & punishments, which you will certainly never want to face.

What Should You If There is Any Problem with Your Employment Income?

In case of any error or mistakes of any kind on your employment income (T4 slip), then you must contact with your employer as soon as possible to rectify that problem. Additionally, if you didn’t receive a T4 slip by the month end, then also you should contact your employer.

However, if an error happens from the employer’s end that prevents you from having a T4 slip, particularly when the taxes are due, then what should you do?

Well, in that cases, the Canada Revenue Agency (CRA) will want you to estimate your income & file the taxes based on that. The Canada Revenue Agency will instantly receive a filed T4 copy the moment the employer remits on behalf of the company.

So, if you are missing out on your T4, just log into your CRA account to check the previous forms copes transmitted under your SIN. Lastly, if you fail to access the T4 you are in need of, then get in touch with the CRA as soon as possible.

Final Words

Hopefully, you now have a clear concept regarding Line 10100 tax return by going through the article. And you can finally fill all your forms & incomes properly.

One thing that you make sure of at all costs is that you fill all your tax returns on time. Otherwise, brace yourself to face penalties. However, if you still face any kind of problems, then make sure to take legal help from the experts to solve them without facing any hassles.

Frequently Asked Question

Having several doubts lingering on your mind regarding the Canada tax line 101? If so, go through the below most asked queries to clear up all the confusion in the fastest way possible:

Is Line 101 the Same as Line 150 on Tax Return?

No, they are two different things, the line 101 represents tax fliers’ employment income while the line 150 represents the total incomes earned from all the mediums.

Will an Erroneous T4 Slip Create Problems?

Of course. In fact, any errors on the T4 slip will ultimately mean that the information you reported has mistakes. So, in these cases, as soon as you encounter any mistakes, the smarter is to contact with your employer right away to solve them.

Can Employment Income Be the Same as the Total Income?

Yes, they are the same if all the money you earn is from employment. This is extremely rare in Canada, as most Canadians tend to have varied sources of income.