Notice to All YEP Inc. Staff

 A T4A is a statement of pension, retirement, annuity, and other income. Under the Canadian tax system, this form is used to report various types of income earned over the tax year, including commissions, self-employment income, or other amounts specified by the Canada Revenue Agency (CRA). Receiving a T4A ensures that employees have the information necessary to accurately report income on their personal tax returns 

 Income reported on a T4A is generally taxable, meaning you will need to report it on your personal income tax return and pay income tax based on your total earnings and tax bracket. However, tax is not usually deducted at source, so individuals may need to plan for any taxes owed.

 For some types of income on a T4A, such as self-employment commissions, you may need to contribute to the CPP. Self-employed individuals are required to pay both the employee’s and employer’s portions of CPP contributions on their income.

 Generally, income reported on a T4A is not subject to EI contributions, as EI is typically related to insurable employment income.

 The T4A form itself is created and issued by the payer, not filled out by the recipient. If you receive amounts that need to be reported on a T4A, here’s how the process generally works:

1. Issuance by Payer:
   • Employers, organizations, or institutions that pay amounts such as pensions, annuities, or self-employment commissions are responsible for issuing a T4A to the recipient and providing a copy to the Canada Revenue Agency (CRA). This means that the CRA will already have a record of this income.

1. Your Responsibility:
   • As a recipient of a T4A, your responsibility is to include the amounts reported on it in your personal income tax return. The information on the T4A helps to ensure you’re reporting all necessary income to the CRA.

1. CRA Verification:
   • Since the CRA receives a copy of the T4A from the payer, they can match it with your tax return to verify that you’ve reported the income correctly. This is how they “know” about the income you’ve received.

Since it’s the responsibility of the payer to issue a T4A for applicable income types, recipients should ensure they keep track of all received forms during the tax year to accurately complete their income tax