The Express Blog has a new series called Employee Benefits Explored for Canadian leaders and job seekers.
Knowing the differences between T4 and T4A employment can help you choose the right job for your lifestyle. Choosing when and where to work influences work-life balance and can give you additional control of your schedule. The right type of employment for you, whether as a T4 employee or T4A contractor, will depend on your preferences and needs.
T4 (Employee)
Employees receive a T4 when they are paid income or commissions by an employer, receive benefits, or have tax withholdings through the employer. When a staffing agency hires an employee, even at a client location, the agency becomes responsible for deducting pension contributions and employee insurance premiums and must report the amounts on a T4.
T4A (Contractor)
When a staffing agency hires a contract worker, the worker is considered self-employed, and the staffing agency isn’t required to deduct pension contributions, employee insurance premiums, or income tax on their behalf. A T4 isn’t required in this scenario, but a T4A slip may be needed. Working as a contractor can be ideal if you prefer to be self-employed, need a more flexible schedule, or have skills that can sustain freelancing. However, contractors may not be eligible for employment insurance.
The Canada Revenue Agency (CRA) offers resources to determine if a worker is an employee or self-employed, and the outcome depends on the working relationship. How employment status is defined varies on where the contract is made, whether in Quebec or another province or territory. Employers or workers who are unsure of their status can request a ruling from CRA.
Express Is a T4 Staffing Agency
As a T4 staffing agency, Express Employment Professionals’ employment experts are available to prepare you for the job and support you while you’re on assignment. Our associates on assignment enjoy all the benefits and security of being employed directly by an organization.
As a leading staffing company, Express placed 427,000 associates globally in 2024 and more than 11 million in our more than 40 years of business. If you’re interested in applying for a job through Express or working with a team of staffing experts in your industry, find the Express location nearest you or visit ExpressPros.ca to learn more.
