T4A – Self-employed commissions

T4A – Self-employed commissions

A T4A is a document provided to an individual by his or her employer which summarizes income from various sources and is used by the individual for submitting an annual income tax return.  This document is typically obtained by a broker/agent when the applicant has commission or contract income, such as a commissioned sales person or independent contractor.  There are, however, other times that an applicant will receive a T4A.

Pause for clarification – Income Taxes and Self-employed commissions

Employers typically deduct income taxes from individuals who are paid self-employed commissions, with some exceptions.  This amount will appear in box 22 of the T4A.

The types of income that are reflected in a T4A include:

  • pension or superannuation;
  • lump-sum payments;
  • self-employed commissions ;
  • annuities ;
  • retiring allowances ;
  • patronage allocations ;
  • registered education savings plan (RESP) accumulated income payments;
  • RESP educational assistance payments ;
  • fees or other amounts for services; or
  • other income such as research grants, payments from a Registered disability savings plan (RDSP); wage-loss replacement plan payments if you were not required to withhold Canada Pension Plan (CPP) contributions and employment insurance (EI) premiums, death benefits, or certain benefits paid to partnerships or shareholders

Employers must also prepare a T4A slip if they provided group term life insurance (taxable benefits) for former employees, or retirees, even if the total of all benefits paid in the calendar year was $500 or less.  In addition, the employer must prepare a T4A slip if they are the Administrator or trustee of a multi-employer plan and they provided taxable benefits under the plan to employees, former employees, or retirees, if the total of all benefits paid exceeded $25.

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