Barbers or hairdressers
If you are considered an employee by your employer, the latter
must deduct the CPP/ QPP contributions, EI premiums, PPIP premiums
and income tax as he/she would for regular employees.
However, if you are not considered an employee, but as a
self-employed business, the owner of the business must still deduct
your participation in the Employment Insurance program and register
on a T4 slip your part as a worker. If you are a Quebec resident,
the owner must enter your contribution to the PPIP (QPIP) as well
as your gross income in Box 83 of the T4 slip.
For more information, consult the following links from the CRA's
website:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/completing-filing-information-returns/t4-information-employers/special-situations/barbers-hairdressers.html
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/special-situations/barbers-hairdressers.html
You can also visit the following website Revenu Québec:
https://www.revenuquebec.ca/en/businesses/source-deductions-contributions/calculation-of-source-deductions-and-employer-contributions-in-certain-situations/type-of-employment/hairdressers/
If you received a T4 slip with an amount in Box 83, you are
considered self-employed. Please follow the procedure below:
1. On the "Left-side menu on the Interview tab", click on
"T4 and employment income".
2. On the right-hand side of the screen, select "T4 income
(earned in any province except Quebec)", or "T4 and RL-1
(Relevé 1) income earned in Quebec" enter the information shown
on your T4 in the appropriate boxes.
3. Go to the bottom of the "T4 slip income" page, and in
the last section titled "Other information (click on the
triangle to see the list of choices)", choose "Memo Box 83
Barbers or hairdressers" from the drop-down menu and enter the
amount in the field.
Once you have followed the steps above, you must also enter the
amount in box 83 of the T4 as business income. To do so,
please follow these steps:
1. Return to the "Left-side menu on the Interview tab"
and select "Interview setup". On the right-hand side, go to
the "Self-employment" group and check "Self-employed
business income". If you have also paid installments, go to the
"Tax paid by instalments" group, check "Tax paid by
instalments, tax transfer for resident of Quebec" and click
"Next" at the bottom of this page.
2. Select the line "Self-employment income" that appears
under the "Left-side menu on the Interview tab"; and on the
right side of the screen, choose one of the T2125 forms that best
represents your business. As a rule, you should choose
"T2125 - Business income".
3. On the "Business identification" page, enter your full
name on the line "Business name" and enter the other
mandatory information in the sections marked with a red
asterisk.
4. For 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
question mark (?) located on the right side of
the box to access a list of the codes.
5. On "Income, expenses", enters $0,00 on the line
"Gross sales, commissions or fees" and enters the amount in
Box 83 on the line for "Barbers or hairdressers (T4 Box 83)
(Enter the total if you have more than one amount)".
6. If you have any expenses related to this income, fill out the
boxes according to each description.
The program will generate federal form T2125 and will carry
over the net amount on line 13500 of the federal return. For
Quebec residents, the program will carry over the amount on line
164 of the Quebec return and generate Schedule L and Form
TP-80.
ID: 20191118145850DEX.xml
Webpage: KPA390-20191118145850DE.htm
