Indians

The salary or wages you pay to an Indian may be taxable, tax-exempt, or partly tax-exempt. Use form TD1-IN, Determination of Exemption of an Indian's Employment Income, to determine the type of exemption that applies to an Indian's employment income. For more information, you can also go to Indian employees.

Taxable salary or wages paid

If you are an employer paying taxable salary or wages to an Indian, you have to deduct CPP/QPP contributions, EI premiums, and income tax, as well as PPIP premiums (for workers in Québec). Complete all boxes of the T4 slips in the usual way.

Tax-exempt salary or wages paid

If you are an employer paying tax-exempt salary or wages to an Indian, you do not have to deduct CPP/QPP contributions; however, you have to deduct EI premiums, and PPIP premiums (for workers in Québec). For more information, see Guide T4001, Employers' Guide - Payroll Deductions and Remittances.

Note
If you paid a retiring allowance to an Indian, see Retiring allowances, Code 68 - Indian (exempt income) - Eligible retiring allowances and Code 69 - Indian (exempt income) - Non-eligible retiring allowances for more detailed information.