Agency that pays the worker
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Agency that pays the worker
Notice to the reader
We have corrected the instructions for box 14 and code 81 for this situation. Previously, the instructions said to report the employee's gross earnings before deductions in box 14 and to leave the box for code 81 blank.
If an agency places a worker in employment under the direction and control of a client of the agency and the agency pays the worker, the agency is not required to deduct income tax, but is required to deduct CPP/QPP contributions, EI premiums, and PPIP premiums (for workers in Quebec), from amounts paid to these workers. The agency also has to report these amounts on a T4 slip for the worker.
How to fill out the T4 slip
Fill out the T4 slip as follows:
Employer's name
Enter your operating or trade name.
Employee's name and address
Enter the worker'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 worker.
Box 14 – Employment income
Leave this box blank.
Boxes 16 and 17 – Employee's CPP/QPP contributions
Enter the CPP/QPP contributions you deducted from the worker's gross earnings.
Box 18 – Employee's EI premiums
Enter the EI premiums you deducted from the worker's gross earnings.
Box 22 – Income tax deducted
Leave this box blank.
Box 24 – EI insurable earnings
Enter the amount of the worker's insurable earnings on which you calculated the EI premiums, up to a maximum of $50,800 for 2016. Enter "0" if there are no insurable earnings.
Box 26 – CPP/QPP pensionable earnings
Enter the amount of the worker's pensionable earnings on which you calculated the CPP/QPP contributions, up to a maximum of $54,900 for 2016. Enter "0" if there are no pensionable earnings.
Box 28 – Exempt (CPP/QPP, EI, and PPIP)
Leave this box blank.
Box 29 – Employment code
Enter employment code 11.
Box 55 – Employee's PPIP premiums
Enter the PPIP premiums you deducted from the worker's gross earnings while he or she worked in Quebec.
Box 56 – PPIP insurable earnings
For workers working in Quebec, enter the total amount used to calculate the worker's PPIP premiums, up to a maximum of $71,500 for 2016.
Code 81
Report the gross earnings before deductions.
- Date modified:
- 2016-12-22