If you are a specified employee and contributions your employer made to an employees profit sharing plan (EPSP) are allocated to you, you may have to pay a special tax on the portion of the EPSP amount that exceeds 20% of your employment income from this employer for the year. This form will help you calculate the excess EPSP amount and the related taxes.
Generally, a specified employee is an employee who deals with an employer in a non-arm’s length relationship or with a significant (10% or more) equity interest in their employer or in any other corporation that is related to their employer.
Multiple EPSPs
If you are a beneficiary under more than one EPSP with the same employer, you will have more than one T4PS slip. If this applies to you, total the amounts from your T4PS and T4 slips and enter the totals on lines 1 and 3, below.
If you have EPSPs from different employers, complete a separate form for each employer. Add the amount from line 7 of each form and include the total on line 22900 of your income tax return. Also add the amount from line 10 of each form and include the total on line 41800.
See Also
Federal Income Tax and Benefit Guide - Lines 22900 and 41800