TaxTips.ca
Canadian Tax and
Financial Information
Employment Income

Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with TaxTips.ca!

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources



Glossary -> Employment Income

Employment Income

Employment income, which is usually reported in box 14 of a T4 slip and should be reported on line 101 of the income tax return, includes:
bulletsalary
bulletwages
bullettips
bulletbonuses
bulletcommissions
bullethonoraria (generally paid in relation to an academic activity)

Other types of employment income, which may not be on a T4 slip, or may be in box 30 of a T4 slip, and should be reported on line 104 of the tax return, include:

bullettips or occasional employment earnings not included on a T4
bulletemployment income from another country
bulletnet research grants
bulletcleric's housing allowance
bulletincome from wage-loss replacement insurance plans
bulletGST/HST and QST rebates received regarding employment expenses
bulletroyalties from a work or invention, if there are no associated expenses.  If there are associated expenses, the net income is reported as self-employment income
bulletamounts received under a guaranteed annual wage plan
bullettaxable benefit for group life insurance premiums paid by your former employer
bulletamounts received from an employee profit-sharing plan

Line 104 Other Employment Income in Canadian Income Tax & RRSP Savings Calculators

This income should be included with Line 101 employment income in the Canadian Income Tax & RRSP Savings Calculators.  However, do not include it in the insurable or pensionable income amounts below the employment income line.

Canada Employment Amount Tax Credit

The Canada Employment Amount tax credit is available on up to $1,000 of employment income for 2007 and later years, at the lowest personal income tax rate.  The $1,000 is indexed for inflation each year after 2007.  See the tables of non-refundable tax credits for the applicable amount in each year.

Self-Employment Income

Self-employment income is not included in employment income, and is not included in the calculation of the Canada Employment Amount tax credit.  It is, however, included in earned income for purposes of calculating the RRSP contribution limit.

Withholdings From Employment Income

Employers are required to withhold income tax, Employment Insurance and Canada Pension Plan premiums, and remit them to Canada Revenue Agency.  See our CPP/EI page for details and rates on CPP and EI.  To calculate how much tax, CPP and EI you will pay on your annual employment income, use the tax calculator for your province/territory.  Go to the Tax Rates page and choose the link to your province.

Employment Expenses

See also "What employment expenses are deductible?" on our Personal Income Tax page.

CRA Resources:

Line 101 Employment Income

Line 104 Other Employment Income

Revised: September 20, 2017

 

Copyright © 2002 - 2017 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.