As a result of the Institute’s continued advocacy, the CRA has agreed to extend last year’s administrative policy relief for reporting stock options on the T4 slip.
For the 2025 tax year, employers may again choose to report stock option benefits and deductions using either codes 38, 39, 41 or codes 90, 91, 92.
Beginning with the 2026 tax year and for all subsequent years, employers will be required to report security option benefits and deductions exclusively using codes 38, 39, and 41.
Employers should do the below
- Confirm which code set their payroll system will use for 2025 (either 38/39/41 or 90/91/92) and communicate this to their employees if applicable.
- Ensure system updates for the 2026 tax year are in place, as only Codes 38, 39, and 41 will be accepted going forward.
- Review internal processes and employee communication materials to ensure alignment with upcoming reporting requirements.