CRA PD7A vs. T4 Summary – What’s the Difference?

If you’re an employer in Canada, payroll reporting can feel confusing—especially when it comes to the PD7A and the T4 Summary. While both are connected to payroll, they serve very different purposes. Understanding the difference will help you avoid mistakes and stay compliant with the Canada Revenue Agency (CRA).

What Is the CRA PD7A?

The PD7A Statement of Account for Current Source Deductions is essentially a monthly statement from the CRA. It shows the payments you’ve made for payroll deductions like CPP, EI, and income tax, along with any amounts still owing.

Think of it like a credit card statement—it helps you track whether your payroll remittances are up to date. The CRA sends the PD7A to employers, so you don’t need to file it yourself. Instead, you should use it to make sure your remittances match what the CRA has on record.

What Is the T4 Summary?

The T4 Summary is very different. It’s an annual form that you, the employer, must prepare and submit to the CRA. This summary reports the total income paid to employees and the total deductions withheld for CPP, EI, and income tax during the year.

The T4 Summary is always filed together with all employee T4 slips, and the deadline is the last day of February following the calendar year. Unlike the PD7A, the CRA doesn’t prepare it for you—it’s your responsibility.

The Key Difference

The easiest way to remember the difference is this:

• The PD7A is a monthly statement sent by the CRA to help you track payments and due amounts for payroll remittances.

• The T4 Summary is an annual report you must complete and file to officially declare the total payroll amounts for your business.

In other words, the PD7A helps you monitor payroll remittances throughout the year, while the T4 Summary closes the loop at year-end by reporting totals to the CRA.

Why This Matters for Employers

Mixing up the PD7A and the T4 Summary can lead to errors, missed deadlines, or even penalties. Employers should:

• Use the PD7A as a tool to make sure all remittances are paid correctly and on time.

• File the T4 Summary by the deadline to avoid fines and stay compliant with CRA payroll rules.

Final Thoughts

Both the PD7A and the T4 Summary are important for payroll compliance, but they play very different roles. The PD7A keeps you on track during the year, while the T4 Summary is your official year-end report to the CRA.

👉 At Tikitax, we help Canadian businesses handle payroll reporting, file T4 slips and summaries, and stay on top of CRA requirements. Reach out today and let us simplify your payroll process.