T4A box 48

When entering an amount ($2,200) in box 48 of the T4A I get two options:

  1. Carry amount to T2042/T2121/T2125
  2. Carry amount to box 130

The CRA website mentions:
Box 048 - Fees for services

  • Enter the amount shown in box 048 on the applicable self-employment line of your return [(lines 135 to 143)]

When comparing the flow through to T2125 to line 135 vs through to line 130 CPP is calculated when it goes to T2125 and not when it goes to line 130.

Can anyone shed some light as to why this is and what they recommend is the correct route?

This should not be rocket science but, it seems, CRA is making it so with the roadshow they did on the slip about this time last year.

My thoughts on Box 48 are as follows:

  1. If it relates to someone’s employment income (ie employment benefit), it would be a line 130 item;
  2. If for contracted services, this would be a T2125 item; thus line 135.

I have seen cases where companies do issue T4A slips for such things as stock option purchases and other employment-type income; so, I presume this is the reasoning for the query. Most times the form is used for small vendor contracted services.

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You need to ask the question about what the box 48 is supposed to be. You also need to evaluate what the taxpayer’s CPP / QPP status is.

If there is a chance that this is truly employment /self-employment situation, the CRA will want the CPP premiums.

If the situation succeeds on the Wiebe Test, then the payor will be dinged on CPP failure and your client will be denied all expenses.

Clarify the situation and report appropriately.

If necessary, when reported on line 130, you may wish to also file cpt20 with the return.

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