Announcing our $4M Seed Funding backed by Y Combinator, Zillionize, 10x Founders and more. Read more here 🎉
YCombinator
YCOMBINATOR
Emoji
Blog
Guide

Guide

May 24, 2024

Understanding T4A Forms in Canada: A Guide for Employers and Employees

If you're an employer or employee in Canada, you may have heard of a T4A form. A T4A form is a tax slip that reports income from sources other than employment, such as pension, self-employment, or investment income. In this post, we'll provide you with a guide to T4A forms in Canada.

Understanding T4A Forms in Canada: A Guide for Employers and Employees

Akhil Reddy
March 15, 2023

Heading 1

Heading 2

Heading 3

Heading 4

Heading 5
Heading 6

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.

Block quote

Ordered list

  1. Item 1
  2. Item 2
  3. Item 3

Unordered list

  • Item A
  • Item B
  • Item C

Text link

Bold text

Emphasis

Superscript

Subscript

Heading 1

Heading 2

Heading 3

Heading 4

Heading 5
Heading 6

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.

Block quote

Ordered list

  1. Item 1
  2. Item 2
  3. Item 3

Unordered list

  • Item A
  • Item B
  • Item C

Text link

Bold text

Emphasis

Superscript

Subscript

Subscribe to newsletter

We will send you new blog posts and product updates. No spam.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

What is a T4A Form?

A T4A form is a tax slip that reports income from sources other than employment. The T4A form is used to report various types of income, including:

  1. Self-employed income
  2. Pension income
  3. Annuity income
  4. Royalties
  5. Other types of income

T4A forms are issued by payers, such as businesses or financial institutions, to individuals who have received income during the tax year.

Who receives a T4A Form?

Individuals who receive income from sources other than employment may receive a T4A form. This includes self-employed individuals, pensioners, and individuals who receive investment income, such as dividends or interest.

Employers who pay fees or commissions to independent contractors or other service providers may also need to issue T4A forms to report those payments.

When is a T4A Form issued?

T4A forms must be issued to recipients by the last day of February following the tax year in which the income was earned. For example, T4A forms for income earned in 2021 must be issued by February 28, 2022.

Recipients must use the information on their T4A form to complete their income tax return and report any income received during the tax year.

The bottom line

T4A forms are an essential tax slip that reports income from sources other than employment. If you're an employer or employee who receives income from sources other than employment, it's important to understand the T4A form and its requirements.

By ensuring compliance with T4A reporting requirements, you can avoid penalties and maintain compliance with Canada's tax laws. If you have questions about T4A forms or need help with compliance, consider consulting with a financial professional or accountant.

Hiring contractors in Canada? Try Thera

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo.

Subscribe to our email to receive updates on events, new features, and blogs.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Elizabeth Wellington

Liz writes about business, creativity and making meaningful work. Say hello on Twitter or through her website.

Try Thera today

Get started with a seamless way to run payroll.

Run your global workforce on autopilot with Thera

Book a demo to get started.