T4A slip, explained
The slip follows the EI rule, not the pay model. Under the CRA’s barbers and hairdressers rule, a shop is the deemed EI employer of every barber who works in its establishment and does not own it, whether that barber rents a chair or is paid a commission. The shop issues that barber a T4 with employment code 13 in box 29, their EI insurable earnings in box 24, the worker’s share of EI it remitted in box 18 and their gross income under code 83, with box 14 left empty and no CPP or income tax withheld. The CRA’s own line is that if you pay a self-employed barber for services "and you are not considered their employer for EI purposes, you need to report the amounts on a T4A slip". Inside the shop, you are.
The T4A is for everyone else the shop pays for services: the contract cleaner, the photographer, the bookkeeper, or a barber who does not work in the establishment. The CRA’s fees for services policy requires the slip once the year’s payments to that person pass $500, reported in box 048 without GST/HST. Both slips are due by the last day of February, and the CRA has said it is not currently assessing penalties for a missing box 048 outside the trucking sector.
The mistake shops make most is issuing a T4A to a commission barber because "they are a contractor". The CRA put that barber on a T4 with code 13 on purpose, so the EI premiums the shop owes on them are visible. The second mistake is mixing the two models on one person: a barber paid commission as an employee gets an ordinary T4 with CPP and EI deducted, and which one they are is decided by the working relationship, not by the slip.
BarberFlow keeps a payout history per barber and records the days each barber worked, so the year’s commission paid to a self-employed barber and a renter’s days worked are one export rather than a reconstruction from bank statements, and booth rent collected is recorded separately as the shop’s income. The slips themselves, and the employee-versus-contractor call, stay with your accountant or payroll provider.
See AccountingFrequently asked questions
Does a barbershop issue a T4A to a chair renter?
No. A chair renter pays the shop, so there is nothing to report in box 048. The shop issues the renter a T4 with employment code 13 and their EI insurable earnings in box 24, because the CRA’s barbers and hairdressers rule makes the shop their deemed employer for EI.
Does a self-employed barber paid commission get a T4A or a T4?
A T4 with employment code 13, their EI insurable earnings in box 24 and the commission under code 83, with no CPP or tax withheld. The CRA sends a self-employed barber to a T4A only when the payer is not their employer for EI purposes, and a shop the barber works in is.
When is the T4A deadline?
The last day of February following the year the fees were paid, for both the recipient’s copy and the return filed with the CRA, the same deadline as the T4.
