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mkstaple
New Member

Why is your package adding $642 in employment earnings to my income when I am retired and don't work?

Don't understand why your package is adding employment income when I am retired and don't work and don't have a T4

1 Reply

Why is your package adding $642 in employment earnings to my income when I am retired and don't work?

No need to be concerned, this amount is being correctly entered on your tax return 🙂

When you receive a T4A slip and have entries in certain boxes, they post to Line 104 of the tax return - Other Employment Income. CRA considers certain benefits (Group Insurance Premiums -Box 119, Medical Premium Benefits - Box 118,etc) you receive when no longer working as employment income and they trigger the Canada Employment Amount deduction. 

A complete explanation of the T4A box number definitions and where they post on your tax return can be found here:

http://www.cra-arc.gc.ca/E/pbg/tf/t4a/t4a-15e.pdf