Worker in the provinces or territories other than
Quebec
You 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:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/special-situations/placement-employment-agency-workers.html
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/completing-filing-information-returns/t4-information-employers/special-situations/placement-employment-agency-workers.html
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
