T4A Form

Le feuillet T4A est un document d'impôt de l'ARC (l'Agence du revenu du Canada) qui déclare des revenus autres qu'un salaire : sommes payées à un travailleur à son compte pour ses services, argent de retraite, bourses d'études. Celui qui paie l'envoie à la personne payée et à l'ARC avant la fin de février.

Brief

Declare income that is not a salary: fees (payments for a service), pensions, scholarships;
Box 048: Fees paid to a self-employed worker, excluding taxes
To be sent no later than the last day of February
In Quebec, a Relevé 1 or a Relevé 2 (the equivalent Quebec slips) is added depending on the type of income.

Why does this matter?

Many entrepreneurs encounter the T4A slip for the first time when they receive their own slip in the trunk, unaware that the IRS already has a copy. Imagine a freelance designer paid $8,000 by a client: that client can give them a T4A slip, and since no tax was withheld, the designer will have to pay that tax themselves in the spring. Two things to remember: if you pay fees to freelancers or subcontractors, check if you have slips to file; if you receive them, set aside a portion of each payment for the upcoming tax. Bankeo connects you with a verified accountant or CPA, free of charge, to clarify your obligations.

Frequently asked questions

What exactly is a T4A, and how does it differ from a T4?

The T4 is an employee's pay slip, showing amounts already deducted from their pay (income tax, Quebec pension contributions, unemployment insurance). The T4A, on the other hand, summarizes payments made without an employment relationship (fees, pensions, scholarships), most often without any tax being withheld. Receiving a T4A therefore means: it's up to you to account for any income tax.

Who is required to file a T4A slip?

Any business that pays pensions, retirement benefits, scholarships, or other relevant income must file a T4A by the end of February. While the obligation generally exists for service fees, the CRA applies it flexibly; an accountant can advise you on the specific requirements for your situation.

I received a T4A slip for my fees, how do I declare this income?

You declare it as business or self-employment income, which allows you to deduct eligible expenses (home office, travel, software) to pay less tax. This is often when hiring an accountant becomes worthwhile. Bankeo connects you with the right accountant or verified CPA for your self-employed needs, free of charge.