Agency whose client pays the worker

Where an agency places a worker (who is not an employee of the agency) in employment under the direction and control of a client of the agency and the client of the agency pays the worker, the client is required to deduct CPP/QPP contributions and income tax but is not required to deduct EI premiums (or PPIP premiums for employees in Quebec). The client of the agency has to report these amounts 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 employee's/worker's name and address, including the province or territory and postal code.

Box 10 – Province of employment

Enter the provincial or the territorial abbreviation.

Box 12 Social insurance number

Enter the SIN, as provided by the worker.

Box 14 Employment income

Leave this box blank. See Code 81.

Boxes 16 and 17 Employee's CPP/QPP contributions

Enter the CPP/QPP contributions you deducted from the worker's gross earnings.

Box 18 Employee's EI premiums

Leave this box blank.

Box 22 Income tax deducted

Enter the total income tax you deducted from the worker's remuneration. This includes the federal, provincial (except Quebec), and territorial taxes that apply.

Box 24 EI insurable earnings

Enter "0."

Box 26 CPP/QPP pensionable earnings

Enter the amount of the worker's pensionable earnings on which you calculated the CPP/QPP contributions, up to a maximum of $58,700 for 2020. Enter "0" if there are no pensionable earnings.

Box 28 Exempt (CPP/QPP, EI, and PPIP)

Enter an "X" or a check mark under EI.

Box 29 Employment code

Enter employment code 11.

Box 55 Employee's PPIP premiums

Leave this box blank.

Box 56 PPIP insurable earnings

Leave this box blank.

Code 81

In the "Other information" area at the bottom of the T4 slip, use code 81 and enter the gross earnings of placement and employment agency workers.

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