After filing T4 slips, many charities get a PIER report (Pensionable & Insurable Earnings Review) asking for more CPP and/or EI premiums. Before you pay, check whether Box 26 (Pensionable earnings) and Box 24 (insurable earnings) on the T4 have been entered correctly.
Note: For employees eligible to claim the CRD, Box 26 should be less than Box 14 by the amount of the housing allowance claim.
If Box 26 was incorrect on the T4, amend the reported amount on the PIER report to reflect the actual amount payable (it should be 0.00). In the Explanation of Changes section of the form enter the comment “Box 26 on the employee T4 was not adjusted to include amounts claimed for Clergy Residence Deduction”.
The CRA will create an amended T4 and issue a copy to the church for their files. They will also make the necessary changes to the employee personal tax return. No further reporting will be required to the employee.