Report the following amounts on a T4 slip when you pay tax-exempt or partly tax-exempt employment income to your Indian employee.

How to fill out the T4 slip

Prepare the T4 slip in the following way when you pay a tax-exempt salary or wages to your Indian employee.

Employer’s name

Enter your operating or trade name.

Employee’s name and address

Enter the employee’s name and address, including the province or territory and postal code.

Box 10 – Province of employment

Enter the provincial or territorial abbreviation.

Box 12 – Social insurance number

Enter the SIN, as provided by the employee.

Box 14 – Employment income

Do not report an amount in box 14 for tax-exempt employment income.

Instead, in the Other information area, use “code 71 – Indian (exempt income) – Employment.”

Partly tax-exempt income

Report only the taxable part of their employment income in box 14.

Report the tax-exempt part of their employment income in the Other information area, using “code 71 – Indian (exempt income).”

Boxes 16 and 17 – Employee’s CPP/QPP contributions

Tax-exempt employment income paid to an Indian employee is not pensionable unless you elected to provide CPP/QPP coverage to all your Indian employees on their tax-exempt employment income.

Report the amount of CPP or QPP contributions you deducted from your employee.

If your employee did not contribute to either plan, do not report any amount in either box 16 or box 17.

For more information, go to CPP/EI Explained and select "Indian workers and the Canada Pension Plan".

Box 18 – Employee’s EI premiums

Report the EI premiums you deducted from your employee. Tax-exempt employment income you paid to an Indian employee is insurable and you must deduct EI premiums.

Box 20 – RPP contributions

Tax-exempt income

Do not report in box 20 an amount for registered pension plan (RPP) contributions relating to tax-exempt employment income.

Give your employee proof of the amounts of RPP contributions for all tax-exempt income. The employee may use Form T90, Income Exempt From Tax Under the Indian Act, to report this amount.

Partly tax-exempt income

Prorate the RPP contribution:

• report in box 20 an amount for RPP contributions relating to taxable employment income
• do not report in box 20 an amount for RPP contributions relating to tax-exempt employment income

Give your employee proof of the amounts of RPP contributions for all tax-exempt income. The employee may use Form T90, Income Exempt From Tax Under the Indian Act, to report this amount.

Box 24 – EI insurable earnings

Report the total amount of insurable earnings you used to calculate your employee’s EI premiums, up to a maximum of $60,300 for 2022.

Report "0" in box 24 if there are no insurable earnings.

Box 26 – CPP/QPP pensionable earnings

Tax-exempt income

If you did not elect to provide CPP or QPP coverage to all your Indian employees on their tax‑exempt employment income, report “0” in box 26.

If you elected to provide CPP/QPP coverage, report the total amount of pensionable earnings you used to calculate your employee’s CPP/QPP contributions, up to a maximum of $64,900 for 2022.

For more information, go to CPP/EI Explained and select Indian workers and the Canada Pension Plan.

Partly tax-exempt income

Report the total amount of pensionable earnings you used to calculate your employee's CPP/QPP contributions, up to a maximum of $64,900 for 2022.

If you elected to provide CPP/QPP coverage to all your Indian employees on their tax-exempt employment income, include that income when calculating your employee’s pensionable earnings.

Report "0" in box 26 if there are no pensionable earnings.

Box 28 – Exempt (CPP/QPP, EI, and PPIP)

Leave box 28 blank if you entered an amount greater than “0” in box 16, 17, or 26.

Enter an “X” or a check mark under “CPP/QPP” only if all the earnings were exempt for the entire period of employment.

Box 44 – Union dues

Tax-exempt income

Do not report in box 44 an amount for union dues relating to tax-exempt employment income.

Give your employee proof of the amounts of union dues for all tax-exempt income. The employee may use Form T90, Income Exempt From Tax Under the Indian Act to report this amount.

Partly tax-exempt income

Prorate the union dues:

• report in box 44 an amount for union dues relating to taxable employment income
• do not report in box 44 an amount for union dues relating to tax-exempt employment income

Give your employee proof of the amounts of union dues for all tax-exempt income. The employee may use Form T90, Income Exempt From Tax Under the Indian Act to report this amount.

Box 52 – Pension adjustment

Tax‑exempt salary is included when determining the pension adjustment amount. For more information, go to Box 52 – Pension adjustment.

Box 55 – Employee’s PPIP premiums

If your employee worked in Quebec, report their PPIP premiums in box 55. Taxable and tax-exempt salary or wages paid to an Indian employee in Quebec are insurable earnings and you must deduct PPIP premiums.

Box 56 – PPIP insurable earnings

If your employee worked in Quebec, report the total amount of insurable earnings you used to calculate their PPIP premiums, up to a maximum of $88,000 for 2022.