A T4PS slip is the statement your employer gives you for an employee profit-sharing plan (EPSP). It shows what the plan allocated or paid to you in the year, split into dividends, capital gains, other employment income and foreign amounts, and each box goes on a different line of your return. You keep one copy and attach the other copy if you file on paper.
The box rules below come from the back of the 2026 T4PS slip and the CRA's line 41800 page, as of October 2026.
Why an EPSP slip looks so different from a T4
A profit-sharing plan isn't a salary. The plan holds contributions your employer makes, earns income on them and allocates that income to members. Because the allocations keep their character, you don't get one income number. You get dividends taxed as dividends, gains taxed as capital gains and the rest as employment income. That's why the T4PS has a box for almost every type of income.
The T4PS boxes and where they go
| Box | What it shows | Where it goes on your return |
|---|---|---|
| 24, 25, 26 | Dividends from taxable Canadian corporations other than eligible dividends | Report box 25 as income; box 26 is the dividend tax credit |
| 30, 31, 32 | Eligible dividends from Canadian corporations | Report box 31 as income; box 32 is the dividend tax credit |
| 34 | Capital gains or losses | Line 17400 of Schedule 3 (an amount in brackets is a loss) |
| 35 | Other employment income | Line 10400 |
| 36 | Total amount forfeited due to withdrawal from the plan | Line 22900, as a deduction |
| 37 | Foreign non-business income | Already in box 35; use it on Form T2209 |
| 38 | Foreign capital gains or losses | Use it on Form T2209; don't add it to Schedule 3 |
| 39 | Foreign non-business income tax | Use it on Form T2209 |
| 40 | Specified employee, yes or no | Tells you whether the excess EPSP rules may apply |
| 41 | EPSP contributions | Used on Form RC359 if you're a specified employee |
Two boxes that are already counted somewhere else
Box 37 is included in box 35, and box 38 is included in box 34. So you never add the foreign boxes to your income a second time. They're only there so you can work out the federal foreign tax credit on Form T2209, using the foreign tax in box 39.
Box 36 works the other way. It's the amount you forfeited when you left the plan, and it was added to your income in earlier years. Entering it on line 22900 takes it back off your total income now.
The specified employee rule people miss
Box 40 is the one to check first if you own part of the company. A specified employee is someone dealing with the employer in a non-arm's length relationship, or with a significant equity interest of 10% or more of any class of shares in the employer or a related corporation.
If you're a specified employee and your employer's contributions to your EPSP for the year are more than 20% of your employment income from that employer, you may have to pay a special tax on the excess. You work it out on Form RC359, Tax on Excess Employees Profit-Sharing Plan Amounts, using box 41, and report it on line 41800. Owner-managers who use an EPSP to move profit out of a company should run this check every year.
How to report a T4PS, step by step
- Check the year, your SIN and the employer's account number against your records.
- Report the taxable dividend amounts from boxes 25 and 31 and claim the credits from boxes 26 and 32 through the federal worksheet.
- Put box 34 on line 17400 of Schedule 3 and box 35 on line 10400.
- If box 36 has an amount, deduct it on line 22900.
- If boxes 37 to 39 have amounts, complete Form T2209 for the foreign tax credit.
- If box 40 says yes, complete Form RC359 with box 41 and report any tax on line 41800.
Mistakes that cause reassessments
- Reporting the actual dividend in box 24 or box 30. The amounts you report as income are the taxable amounts in boxes 25 and 31.
- Adding box 37 or box 38 on top of boxes 35 and 34, which counts the foreign amounts twice.
- Forgetting box 36 because it looks like bad news. It's a deduction that gives back income you were taxed on before.
- Ignoring box 40. If it says yes, the excess EPSP test applies whether or not your accountant mentioned it.
Registered Indian status
The back of the slip also notes that if you're a registered Indian, or entitled to be registered under the Indian Act, your personal property, including income, is exempt from tax when it's situated on a reserve. Form T90 is where you report that kind of exempt income.
The T4PS often arrives alongside your regular T4 slip from the same employer, and the two don't overlap: salary stays on the T4, plan allocations stay on the T4PS. If the plan also pays dividends outside the EPSP, those come on a T5 slip instead.
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The verdict
Read the T4PS as a set of small slips glued together. Each box has its own line, the foreign boxes are already counted, and box 36 is a deduction, not income. If box 40 says you're a specified employee, the 20% test on Form RC359 is the one calculation you can't skip.
Frequently asked questions
Where does box 35 of the T4PS go?
Box 35 is other employment income. Enter it on line 10400 of your return.
What do I do with box 36 on a T4PS?
Box 36 is the amount forfeited when you withdrew from the plan. Enter it on line 22900 to reduce your total income, because it was added to your income in earlier years.
Do I add T4PS box 37 to my income?
No. Box 37 is already included in box 35. Use it to calculate your foreign tax credit on Form T2209.
What is a specified employee on a T4PS?
Someone dealing with the employer in a non-arm's length relationship, or with a significant equity interest of 10% or more of any class of shares in the employer or a related corporation.
When is there tax on excess EPSP amounts?
When you're a specified employee and your employer's contributions to your EPSP for the year are more than 20% of your employment income from that employer. Use Form RC359 and line 41800.
