Canadian slips can feel like alphabet soup: T4, T4A, T4A-NR… which one goes to whom, and when? Misclassifying income can lead to questions from the CRA, penalties, or frustrated workers and contractors.
Let’s break it down in plain English so you can choose the right slip with confidence.
T4: for employees
T4 slips are for employment income. That typically includes:
• Salaries and wages
• Vacation pay
• Bonuses and commissions paid as employees
• Taxable benefits
• CPP, EI, and income tax deductions
If the individual is:
• On your payroll
• Receiving regular paycheques
• Having deductions remitted to the CRA
…they’re almost certainly an employee and should be getting a T4.
T4A: for certain non-employee and “other” income
T4A slips usually relate to non-employee income, such as:
• Fees for services paid to self-employed individuals
• Certain commissions that aren’t on a T4
• Some scholarships, bursaries, or research grants
• Other income types that CRA assigns to T4A boxes
The key idea: there’s no employer-employee relationship, but it’s still income the CRA wants reported via an information slip.
T4A-NR: for non-residents
T4A-NR stands for “Statement of Fees, Commissions, or Other Amounts Paid to Non-Residents for Services Rendered in Canada.”
You’re in T4A-NR territory if:
• The payee is not a resident of Canada, and
• They performed services in Canada, and
• The payment is for fees, commissions, or similar amounts
T4A-NR often comes with additional complexity, like possible withholding tax obligations. If you’re paying non-residents, it’s worth getting professional advice.
Decision path: which slip do you need?
You can think of it as a simple decision path:
1. Is the person an employee?
• Yes → T4
• No → go to 2
2. Is the person a non-resident of Canada who performed services in Canada?
• Yes → T4A-NR (and consider withholding rules)
• No → go to 3
3. Is this payment a type of income that CRA expects on a T4A (for example, fees for services)?
• Yes → T4A
• No → another form (or no slip) may apply, depending on the nature of the payment
Why getting this right matters
Correct slips help you:
• Avoid CRA penalties for misreporting or missing information returns
• Show that your classification of workers (employee vs contractor) is consistent
• Support your deductions if the CRA reviews your expenses
If you consistently treat someone like an employee but report their income on T4A, you’re sending mixed signals and may invite closer review of worker classification.
Common examples
Here are a few common examples to make this concrete:
• Full-time staff member on payroll → T4 for their employment income
• Freelance graphic designer billing your business → possible T4A if payments fit reporting rules
• Non-resident speaker flown into Canada and paid a fee for a conference → potential T4A-NR situation
Practical tips
• Document your reasoning. If you treat someone as a contractor and use a T4A, keep notes about why (control, tools, risk, etc.).
• Be consistent. Don’t flip between T4 and T4A for the same person without a clear change in the relationship.
• Review non-resident payments early. Non-resident rules can be tricky—don’t leave them until year-end.
Where T4ASlip fits in
Once you’ve decided that T4A (or T4A-NR) applies, the next challenge is actually producing the slips. A tool like T4ASlip helps you:
• Track who needs which type of slip
• Import payments from your accounting or payout systems
• Generate consistent, CRA-aligned T4A slips at scale
When T4A season arrives, you’ll spend less time wrestling with forms and more time just reviewing and approving what’s already been prepared.
Key takeaway
T4, T4A, and T4A-NR each have a clear purpose:
• T4 – employees
• T4A – certain non-employee and other income
• T4A-NR – non-residents paid for services in Canada
Once you understand which bucket a payment belongs in, building a repeatable process around it becomes much easier.