T4 Code 81 — Placement or employment agency — gross earnings
Gross pay for agency workers where the agency did NOT withhold income tax — you owe tax on the whole amount.
At a glance — Code 81
- Box name
- Placement or employment agency — gross earnings
- T1 line
- Line 10400 — Other employment income
- Check against
- Your agency paystubs; confirm whether CPP and EI were withheld (often yes) while income tax was not (often no).
What Code 81 means
Code 81 is used by placement agencies that paid you but did not withhold income tax at source. Typical setup: temp agencies, day-labour pools, some seasonal recruitment.
Unlike regular Box 14, Code 81 is NOT already included in Box 14. You add it to Line 10400 separately on your T1.
Because no income tax was withheld, quarterly instalments may be required if you have significant agency income. CPP and EI are generally still deducted (shown in Boxes 16/18) despite the tax not being withheld.
Tax return implications
- Added to Line 10400 — full amount is taxable.
- Budget for the tax bill at filing time, or request instalment remittances via Form PD7A.
- Income counts as employed income — builds CPP benefits and RRSP room.
Related T4 boxes
Code 82 — Driver of taxis or passenger-carrying vehicles — gross earnings
Gross taxi / passenger-driver earnings where the employer did not withhold tax — reported on Line 10400.
Code 85 — Employee-paid premiums for private health services plan
PHSP premiums you paid through payroll — eligible as medical expenses on Schedule 1 / Line 33099.
Code 87 — Volunteer firefighter / search & rescue exempt amount
Up to $1,000 of honoraria from volunteer emergency services — exempt from tax; excess counts as employment income.
Box 14 — Employment income
Your total gross employment income for the year before any deductions — salary, wages, bonuses, commissions, taxable benefits and most other pay.
Filing your return? Use the payroll deductions calculator to verify the amounts on your T4 match expected CPP, EI and income tax withholdings, and the income tax calculator to estimate your refund or balance owing.
Sources
T4 box definitions from CRA T4 employer guide. Rates and thresholds current for 2025; file your 2025 T1 by April 30, 2026 (self-employed June 15).