Worker in the provinces or territories other than QuebecYou have received a T4 slip with an amount displayed in box 81 for income earned as a placement or employment agency worker.
There are 3 types of rules on placement employment agencies:
a) If it is determined that the taxpayer is an employee of the agency (the agency must withhold the CPP, EI and income tax.)
b) If it is determined that the taxpayer is not an employee of the agency (the client of the agency must withhold CPP, EI and income tax.)
c) If it is determined that the taxpayer is self-employed (the agency or client is not required to deduct CPP contributions or EI premiums, or income tax because the taxpayer self-employed.)
You need to determine your employment status. To do so, visit the following link:
To report this amount, please follow the steps below:
1. On the "Left-side menu on the Interview tab", select the "T4 and employment income" and in the screen on the right, choose "T4 income (earned in any province except Quebec)".
2. On the page that appears, enter the information shown on your T4 in the corresponding boxes;
3. At the bottom of the ''T4 slip income" page, select the last section entitled "Other information (click on the triangle to see the list of choices)" and choose "Memo Box 81 / 29 = 11 Placement or employment agency workers"
4. Return to the "Left-side menu on the Interview tab" and select "Interview setup"
5. On the screen to your right, go to the "Self-employment" group, check "Self-employment business income" and click "Next" at the bottom of the page.
6. In the "Left-side menu on the Interview tab", select "Self-employment income" and choose "T2125 - Business Income" on the page appearing to the right;
7. On the "T2125 - Business identification" page, enter your full name on the line "Business name" and then enter the other information in the required fields marked with a red asterisk;
8. On the line "6-digit code from the North American Industry classification system", enter the code that best describes your industry. If you do not know the code, click on the tooltip (the question mark (?)) to the right of the box to obtain the code;
9. In the "Income, expenses" section, enter $0.00 on the line "Gross sales, commissions or fees" and enter the amount from box 81 on the line ''Placement or employment agency workers (T4 Box 81) (Enter the total if you have more than one amount)". If you have income-related expenses, enter them in the boxes that correspond to their description.
The amount will be entered on line 13500 of the federal return. The program will also generate the federal form T2125.
ID: 20191118130002DEX.xml
Webpage: KPA390-20191118130002DE.htm