What this document proves for a mortgage file
A T4 records employment remuneration reported by an employer for a tax year. Box 14 shows employment income, which gives you a historical figure to compare with the application. It is not a promise of the same earnings in the current year. A new job, a salary change or variable hours can all mean you need more information before using that figure.
Keep the distinction between historical earnings and current supportable income clear in your notes. A salaried borrower may have earned overtime, bonuses or taxable benefits within the reported amount. Whether those items can be used depends on the lender policy and supporting history. The T4 helps you ask the right questions rather than automatically making every reported dollar acceptable income.
What brokers check on it
Check the employee name, employer and tax year before reading the dollars. Match the employer to the application and current employment evidence. If there are several T4s, understand whether the borrower changed employers, worked concurrent jobs or provided duplicates. Do not add slips together until you know what each one represents and which employment continues.
Read box 14 employment income and retain the whole slip. Compare it with the NOA for the relevant year, the pay stub and any employment letter in the file. Note the date range each source covers. If the client says their salary changed, ask for the document that establishes the change and confirm how the lender wants the new income supported.
Common red flags
An employer that does not match the application deserves a question, not an immediate accusation. A borrower may have changed jobs or used a different business name. Missing information, a cropped slip or a tax year outside the requested history can also stop a review. Request a clear complete copy and make the context explicit before you submit.
A stated salary well above box 14 can reflect a recent raise, but it can also reflect an unsupported estimate of overtime. Be particularly careful when a current pay stub annualizes to more than a completed year. Ask what is base pay, what is variable and what history exists. Do not make the file appear stronger by treating the highest available number as the answer.
What the AI Underwriter cross checks it against
The AI Underwriter compares the T4 with the stated application income, NOA and pay stub. It can point out that the employer or figure differs and show which document supplied each amount. A broker can then work through the discrepancy with the client. That is more useful than an income verdict that gives no way to trace the underlying evidence.
In Emily Carter's specimen, the current pay stub contains overtime, so the larger annualized figure is not used automatically. The supportable illustration uses the T4 salary figure while the broker confirms the lender policy and whether the required overtime history exists. The earlier NOA adds context but is not treated as a current salary confirmation.
What the AI does not do
The AI does not approve or decline, contact lenders or contact credit bureaus. It does not authenticate the slip with the employer or the CRA. The broker reviews every finding, reads the source pages and determines the verification required for the file. A consistent set of names and amounts is helpful, but consistency alone is not proof that everything is genuine.
Before submission, explain the income figure you used and why the supporting documents fit the lender requirements. Leave the unresolved items visible rather than burying them in an optimistic summary. If new evidence changes the income, update the application and ratios together. The lender should receive the same income story in the application, documents and broker notes.
Frequently asked questions
- Which T4 box shows employment income?
- Box 14 shows employment income for the tax year. Review the employer and year as well as the amount.
- Can I use the highest income document?
- Not automatically. Reconcile historical earnings, current salary and variable income, then apply the lender requirements to the supported figure.
- What if the employer differs from the application?
- Ask whether there was a job change or a business name difference, and obtain the evidence needed to establish current employment.
- Does the AI decide whether overtime counts?
- No. It surfaces the figures and differences. The broker confirms the history and lender policy before deciding what to submit.