As February is almost over and March is knocking on the door, the time has come to start thinking about the 2024 tax season. RPI Consulting Group has recently sent out T4s to our candidates, and we wanted to take this opportunity to share a few important reminders that you’ll want to keep in mind during this important time of year.
Deductions of CPP and EI from your pay, and information on your T4
You might find yourself wondering why, as a self-employed contractor that has a contract with RPI, we have to deduct CPP and EI from your pay. When you work with an employment agency like RPI, your earnings are viewed as being both insurable and pensionable. The CRA guidelines confirm that any agency is required to make these deductions upon payment.
Added to this is the fact that the CRA also has guidelines for employees who regularly work with employment agencies – to put it simply, RPI’s candidates and the contracts that we have with them are to provide a service for our clients. This means that the candidate is under the control of the client and must receive a T4, but for tax purposes the candidate is also considered to be self-employed.
You may also ask why you’re receiving a T4 instead of a T4A. As we mentioned above, the CRA specifically says that any candidate engaged with an employee agency must receive a T4. The T4 that you’re issued is, of course, for the entire year, and you’ll notice that it contains the code ‘11’ is Box 29. This code is what the CRA uses for employees working for an agency.
If you have any further questions about your T4, please feel free to reach out to your Account Manager – however, we also recommend speaking with an accountant or anyone who helps you with your taxes if anything is unclear.
Thank you for your great work in 2023, and we look forward to the rest of 2024 and beyond!
