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T4 vs T4A #shorts

6 Oct 2023 · 1 min

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Bob Gauvreau explains the difference between Canadian tax forms. A T4 goes to employees and reports income with payroll withholdings. A T4A goes to self-employed contractors and reports self-employed income, which employees generally cannot claim deductions against unless they have a specialized agreement.

Questions this video answers

Employees.

Self‑employed individuals / contractors.

Chapters

Okay, let's talk about a T4 versus a T4A. What are the differences? Now when we're Talking about a T4 versus a T4A, a T4 is issued to employees. A T4A is issued to self employed individuals. Now how does that work for that individual? Well, that T4 goes on their personal tax return. It's got all the withholdings taken off and everything like that. But they don't get access to deductions on their personal tax return related to employment unless you've got a specialized agreement that allows you to deduct certain expenses because you've incurred them. Really as an employee, you get a T4 and that goes on your tax return as a T4A. It's essentially referred to as a statement of self employed income. So you are a self employed contractor with a T4A. It would actually go on your personal tax return as a statement of business activity. These.