Salary deferral arrangements other than prescribed plans
A salary deferral arrangement is a plan or arrangement made between an employee and an employer. Under such an arrangement, an employee postpones receiving salary and wages to a later year. Treat the deferred salary and wages as employment income in the year the employee earns the amount. Report it on the employee’s T4 slip for that year.
Non-prescribed plans or arrangements
If the arrangement is not a prescribed plan, treat the deferred salary and wages as employment income in the year in which the employee earns the amount. Deduct CPP contributions, EI premiums and income tax in the usual way.
For more information about reporting deferred amounts, go to Reporting salary deferral plans or arrangements amounts.