Indians – Tax-exempt self-employment income

If you pay tax-exempt income to a self-employed Indian worker who is a fisher, barber or hairdresser, a taxi driver or driver of other passenger-carrying vehicles, you do not have to deduct CPP/QPP contributions; however, you have to pay EI premiums (and PPIP premiums for fishers/workers in Quebec). For more information on fishers, see Guide T4005, Fishers and Employment Insurance.

How to fill out the T4 slip

Employer’s name

Enter your operating or trade name.

Employee’s name and address

Enter the fisher or 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 fisher or worker.

Box 14 – Employment income

Leave blank. In the “Other information” area, enter code 88 and the amount of the tax-exempt earnings paid to the self-employed fisher or worker in the year. For more information, go to Other information – code 88.

Box 18 – Employee’s EI premiums

Enter the EI premiums you remitted on behalf of the self-employed fisher or worker’s gross earnings.

Box 24 – EI insurable earnings

Enter the amount of the fisher or worker’s insurable earnings on which you calculated the EI premiums, up to a maximum of $54,200 for 2020. Enter "0" if there are no insurable earnings.

Box 29 – Employment code

Enter the appropriate code for the occupation of the worker. Enter code 13 for barbers or hairdressers, code 12 for taxi drivers or drivers of another passenger-carrying vehicles or code 17 for fishers – self-employed.

Box 55 – Employee’s PPIP premiums

Enter the PPIP premiums you deducted from self-employed fisher or worker’s gross income earned in Quebec.

Box 56 – PPIP insurable earnings

For self-employed income earned in Quebec, enter the total amount used to calculate the fisher or worker’s PPIP premiums, up to a maximum of $78,500 for 2020.

Other information – code 88

Enter the amount of the fisher or worker’s tax-exempt gross earnings using Code 88 – Indian (exempt income) – self-employment. Do not include this amount in box 14.

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