Placement or employment agency workers

If you are a placement or employment agency (or a client of an agency) that pays a worker employment income:

• if you are the agency that hired the employee (even if they are located at a client’s premises), you are required to report their income and deductions on a T4 slip
• f you are an agency that placed the worker (who is not your employee) under the direction and control of your client and you pay the worker, you are required to report their income and deductions on a T4 slip
• if you are an agency that placed the worker (who is not your employee) under the direction and control of your client and your client pays the worker, the client is required to report their income and deductions on a T4 slip

How to fill out the T4 slip

Fill out the T4 slip as follows:

Employer's name

Enter your operating or trade name.

Employee's name and address

Enter the 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 worker.

Box 14 – Employment income

Do not report the worker’s self-employed earnings in box 14. Instead, go to Code 81.

Boxes 16 and 17 – Employee's CPP/QPP contributions

Report the amount of CPP/QPP contributions you deducted from your employee or worker.

Box 18 – Employee's EI premiums

Report the amount of EI premiums you deducted from your employee or worker.

Do not report any amount in box 18 if you did not deduct EI (for example, you are the agency’s client and you paid the worker).

Box 22 – Income tax deducted

Report the total income tax you deducted from your employee or worker’s income. This includes the federal, provincial (except Quebec), and territorial taxes that apply.

Do not report any amount in box 22 if you did not deduct income tax (for example, you are the agency and you paid the worker).

Do not include any amount you withheld under the authority of a garnishee or a requirement to pay that applies to their previously charged tax arrears.

Box 24 – EI insurable earnings

Report the amount of the employee or worker’s insurable earnings you used to calculate their EI premiums, up to a maximum of $60,300 for 2022.

Report “0” if there are no insurable earnings and there is no amount in box 18 (for example, the agency’s client paid the worker). 

Box 26 – CPP/QPP pensionable earnings

Report the amount of the employee or worker’s pensionable earnings you used to calculate their CPP/QPP contributions, up to a maximum of $64,900 for 2022.

Report "0" if there are no pensionable earnings and there is no amount in boxes 16 and 17.

Box 28 – Exempt (CPP/QPP, EI, and PPIP)

If the agency’s client paid the worker, enter an “X” or a check mark under EI.

In any other situation, leave box 28 blank.

Box 29 – Employment code

If the agency hired the worker as an employee, leave box 29 blank.

If the worker is under the direction and control of the agency’s client, enter employment code 11.

Box 55 – Employee's PPIP premiums

Report their PPIP premiums you deducted from their gross earnings while they worked in Quebec.

If the agency's client paid the worker, do not report an amount in box 55.

Box 56 – PPIP insurable earnings

If the person worked in Quebec, report the total amount used to calculate their PPIP premiums, up to a maximum of $88,000 for 2022.

Do not report any amount in box 56 if you did not deduct PPIP premiums (for example, you are the agency’s client and you paid the worker).

Code 81

Enter code 81 in the “Other information” area and report the placement worker’s gross earnings if:

• you are an agency’s client
• the agency placed a worker under your direction and control
• the worker is not the agency’s employee

If you are the agency’s client and the worker is the agency’s employee, leave this box blank.

For more information, go to Placement or employment agency workers.