What Happens to Your T4 When You Change Your SIN Number in Ontario

Nov 25

As financial advisors, we often get questions from clients regarding tax forms and the changing of personal details, such as name, or even social insurance number (SIN). The changing of one’s SIN number is not a common occurrence, which is why it’s important to know what to do once it changes, especially when it comes to your taxes and T4. A T4 slip is a document issued by your employer. It contains the income you’ve earned in the past year of employment, and the Canada Revenue Agency (CRA) needs it in order to determine your tax obligations. The SIN number plays a crucial role in your T4, as it is the main piece of personal information the CRA and your employer use for tax reporting. It is for this reason that being proactive is so important when it comes to a SIN number change. In this guide, we’ll show you how to navigate a SIN number change while avoiding any tax discrepancies that may occur as a result.

Reasons Your SIN Number Can Change

As we briefly mentioned, having your SIN number change is usually rare. When you are given a SIN number, whether from birth or after immigrating to Canada, that number is intended to be yours for the remainder of your life. That being said, there are several occurrences that may cause your SIN number to change.

Identity Theft: In instances of identity theft, where your SIN becomes compromised, you can be issued a new number for safety purposes and to protect your identity.
Citizenship Status: Changes in your residency or citizenship status can require a SIN update. For example, temporary residents of Canada receive a SIN number starting with ‘9’, which is unique to non-permanent residents. Once you reach permanent residency status, your SIN number will be changed and no longer start with ‘9’.

How a SIN Change is Processed

To make any changes to your SIN card, you’ll need to visit your local Service Canada with the appropriate documentation. This documentation can include a name change certificate, proof of citizenship, or in the case of identity theft, a police report. Please refer to the official Canada.ca page to know the exact documentation that needs to be provided. Once the change is processed, it is your duty to notify the required parties about the change.

What Happens to Your T4 When You Change Your SIN

If you change your SIN and do not take any action to notify your employer, your T4 will be reported to the CRA under your old SIN, and your income and deductions may not be accurately reflected in your tax return. Your employer will need to update their payroll records to ensure your income, deductions, and contributions are recorded under your new SIN. If you have worked for more than one employer during the same tax year and have changed your SIN, take the time to inform each employer about this change.

The CRA keeps a record of your SIN and tax history. When you change your SIN, the CRA updates its systems to link your new SIN with your previous tax records. This helps to avoid problems like lost or mismatched income information. However, it is important that all relevant parties are made aware of your new SIN to prevent any complications when filing your taxes.

Key Steps to Take After Changing Your SIN

Step 1: Notify Your Employer(s)

Notify any and all employers as soon as your SIN number has been changed. Once this is done, your employer can update their payroll systems and your T4 once tax season starts.

Step 2: Update with CRA and Other Financial Institution

It’s best practice to notify the CRA directly when your SIN number has changed. This will allow them to update your previous tax filings to be under your new SIN. In addition, you should also notify your bank, pension provider, and insurance company. In doing so, any tax slips they issue, such as your T5 or an RRSP contribution slip, reflect your new SIN.

Step 3: Review Past T4s

If you’ve recently received your T4s for the year before your SIN number officially changed, get in touch with the CRA to make sure your earnings are transferred to your new SIN. This will ensure no issues arise when you file your tax return.

How to File a Tax Return After Your SIN Number Changed: A Step-By-Step Guide

Here’s how to ensure your tax return is accurately filed after your SIN number has changed.

Step 1: Gather Necessary Documentation

Before you start filing your tax return, collect all relevant documents, including your new SIN, any T4 slips from your employers, and other income statements. All documents should have your new SIN for accurate processing by the CRA.

Step 2: Inform the CRA of Your SIN Change

You can do this by contacting them directly via phone or through your CRA account. This step helps in linking your new SIN to your tax history and ensures that there are no discrepancies in your records.

Step 3: Update Your Personal Information:

Ensure all your personal information is up-to-date, including your new SIN. If you're using tax preparation software, such as Turbotax, check that your new SIN is entered correctly. If you're filing a paper return, make sure to write your new SIN clearly in the appropriate section.

Step 4: Verify Income Reporting

If you have income from multiple employers or sources this year, verify that all T4 slips and income statements include your new SIN. If any documents are still under your old SIN, reach out to your former employers or financial institutions to make corrections. This will prevent any issues with your income reporting and tax calculations.

Step 5: File Your Tax Return

Once you’ve confirmed that all your documents contain your new SIN and your personal information is updated, you can proceed to file your tax return. You can file online using certified tax software, through the CRA’s e-filing services, or by mailing a paper return.

Step 6: Monitor Your Tax Return Status

After submitting your tax return, keep an eye on its status. You can check the progress through your CRA online account. If there are any issues related to your SIN change or if additional information is needed, the CRA will be in touch with you to rectify any issues. Nevertheless, it’s still crucial that you take proactive steps to inform the CRA beforehand. This will stop your tax return from being delayed during processing.

Step 7: Retain All Documentation

Lastly, retain copies of your tax return and any related documents, including those that indicate your SIN change. This will be valuable for future reference or in case of any discrepancies that may arise later.

Have GRFS Complete Your Tax Return

With Grand River Financial Solutions, you can ensure your tax return is in good hands. We can help you navigate the complexities of the tax world with precision and confidence, leaving you with less taxes owed and more money in your pocket.

Changing your Social Insurance Number (SIN) is an uncommon but significant event that can impact your taxes, especially when it comes to your T4 slip. If your SIN ever changes or has changed, take immediate action to avoid discrepancies in your income reporting and ensure a smooth tax filing process. By notifying your employer, updating the CRA and financial institutions, and carefully reviewing your documentation, you can mitigate potential issues that may arise during tax season. Additionally, retaining copies of all related documents will provide a safeguard against any future complications. For those seeking assistance, Grand River Financial Services is here to help you navigate these changes efficiently, ensuring that your tax return is filed accurately and that you maximize your financial well-being. Don't hesitate to reach out and let us simplify the complexities of your tax obligations.

Elie GRFS