T4A – Box 048: Individuals considered to be self-employed are sometimes issued a T4A information slip. Fees for services are entered in box 048. This amount is declared as a type of business income or self‑employment income.

If you or the individual believe the T4A has been issued in error (that is, if the individual is not self-employed), it is the responsibility of the individual to contact the issuer of the slip.

What to consider when declaring self-employment income under the CVITP

• When reporting self-employment or business income, it is mandatory to include form T2125, Statement of Business or Professional Activities

• The North American Industry Classification System (NAICS) code is mandatory and used for statistical purposes. It is an industry code that a business is assigned, based on their primary business activity, in accordance with the NAICS. This code must be entered in form T2125. The following are some of the more common NAICS codes you may see:

Child day-care services

• 624410 (child and youth) – used for a babysitting service/day-care (outside the child’s home but not in the individual’s home, or the return is no longer simple)

• 814110 (private households) – used for babysitting in the child’s home, live-in caregiver, nanny, cook, or housecleaning

Other direct selling establishments

• 454390 – used for door-to-door delivery, such as newspapers. If the individual is using their vehicle for delivery and is claiming vehicle expenses, the return becomes more complex. In that case, the return should not be completed by the CVTIP.

Independent actors, comedians, and performers

• 711512 – used for independent individuals (freelance) primarily engaged in artistic and cultural productions or providing technical expertise. Some examples can include comedians, disc jockeys, to erect and dismantle stages, cameramen, actors (including extras), or even dancers

For more information on NAICS codes and groupings, refer to North American Industry Classification System (NAICS) Canada 2017 on Statistics Canada’s website.

Slips required:

• T4 – Statement of Remuneration Paid
• T4A – Statement of Pension, Retirement, Annuity, and Other Income

Marc was an employee of a landscaping business (Hard Rock Landscaping) during the summer. To earn extra money he worked as a film extra during the production of a movie. He was paid as a subcontractor for his services on the film set. He did not have any expenses.

Points to remember:

• Since Marc has a T4A with an amount in box 048, you must select the Pension income, other income and split pension income, COVID-19 benefits and Self-employed business income in the Interview setup to declare this information. Selecting these options will generate the T4A page as well as form T2125
• When reporting self-employed business income, form T2125 is mandatory. The amount from box 048 must be entered in both the T4A as well as the T2125
• It is necessary to include NAICS codes for statistical purposes. In this case, code 711512, Independent actors, comedians and performers, is selected in the appropriate section of form T2125
• When specifying the dates related to the fiscal year’s beginning and end periods, always enter January 1 to December 31. The dates are entered on form T2125, under the Business identification section in UFile
• When you click on the Review button in UFile, or when the tax return is generated, you will notice that a few new lines have been populated:
  
  • line 13500, Business income (Net): T4A box 048 is considered business income
  • lines 22200, 31000, and 42100: May include an amount owing for CPP as a result of earning this type of income

Information slips for Marc Caron:

T4 - Statement of Remuneration Paid

T4A – Statement of Pension, Retirement, Annuity, and Other Income