Employment of a member of a religious order who has taken a vow of poverty - Calculate payroll deductions and contributions
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Calculate payroll deductions and contributions
- Get ready to make deductions
- Determine if a benefit is taxable
- Determine the tax treatment of payments other than regular employment income
- Employment of a member of a religious order who has taken a vow of poverty
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Other payments
- Annuity payments
- Bonus or irregular payments
- Commission payments
- Employee who dies
- Employee who is a non-resident
- Employee who is hired as a family member or a related person
- Employee who is leaving
- Employee who is on parental leave
- Employee who is registered, or entitled to be registered under the Indian Act
- Employee who is working outside Canada for a Canadian company or the Canadian government
- Employee's life events: Start, stop or restart CPP deductions
- Employer who is a non-resident employer
- Employer who provides a wage-loss replacement plan for short-term disability (reduced EI premium rate)
- Lump-sum payments
- Patronage payments
- Payments from a registered disability savings plan (RDSP)
- Payments from an employees profit sharing plan (EPSP)
- Payments from retirement compensation arrangements
- Payments from wage-loss replacement plans
- Payments of directors' fees
- Payments of fees for services
- Payments of retiring allowances
- Payments of wages in lieu of termination notice
- Payments related to death benefits
- Payments related to pension or superannuation
- Payments related to research grants
- Payments related to salary deferral arrangements
- Payments related to tenure of office (elected or appointed officials)
- Payments related to worker's compensation claims
- Payments to agriculture and horticulture workers
- Payments and earnings related to barbers and hairdressers
- Payments to caregivers, baby-sitters and domestic workers
- Payments to emergency services volunteers
- Payments to employee of an employment agency (temporary-help)
- Payments to fishers
- Payments to foreign seasonal agricultural workers
- Payments to forestry workers for power saws or tree trimmers
- Payments to police officers for special or extra duty from third parties
- Payments to taxi and other passenger-carrying drivers
- Payments to workers at a circus, fair, parade or similar activity
- Qualifying retroactive lump-sum payments
- Retroactive payments
- Taxable benefits
- Tips received by employees
- Vacation pay and public holidays payments
- How to calculate
- Make corrections before filing
Employment of a member of a religious order who has taken a vow of poverty
This new content has been developed for clarity, completeness and plain language. No changes were made to the existing legislative requirement.
You may have employees who are members of a religious order who have taken a vow of perpetual poverty. This means that they have paid over to their order their entire earned income and superannuation or pension benefits.
On this page
Steps
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Determine if you need to report the payment on a T4 slip
If your employee is a member of a religious order who has taken a vow of poverty, you must report their employment income on a T4 slip regardless of whether you have to withhold income tax, EI premiums or CPP contributions.
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Determine which deductions you need to withhold
If your employee is a member of a religious order who has taken a vow of poverty, you must withhold the following deductions from their employment income:
- Income tax, withhold unless one of the following apply:
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You pay the remuneration directly to the religious order
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Your employee gives you a letter of authority from the CRA
How your employee can request a letter of authority from the CRA
Your employee can request a letter of authority by completing Form T1213 Request to Reduce Tax Deductions at Source, and sending to the CRA at the address provided on this form.
If they have not previously claimed the deduction on line 25600 of their personal income tax return, they may be asked to provide a letter from the religious order confirming that they are a member and have taken a vow of perpetual poverty.
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- CPP contributions (do not withhold)
- EI premiums (do not withhold)
- Income tax, withhold unless one of the following apply:
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Report the payment on a T4 slip
If your employee is a member of a religious order who has taken a vow of poverty, you must report the following on a T4 slip:
- Box 14 - Employment income
- Box 28 - Exempt, both CPP/QPP and EI must be checked
- Any applicable codes for taxable benefits
Learn how to report the payment: T4 slip - Information for employers.
References
Related
IT86R- Vow of perpetual poverty (Archived)
Legislation
- ITA: 110(2)
- Charitable gifts: Deduction for income donated under a vow of perpetual poverty
- CPP: 6(2)(e)
- Excepted employment: member of a religious order who has taken a vow of perpetual poverty
- CPP: 7(1)(g)
- Regulations to include employment
- EIA: 5(6)(d)
- Regulations to exclude employment: Vow of poverty
- EIR: 6(c)
- Employment of a person as a member of a religious order included in insurable employment
- EIR: 7(b)
- Employment of a person as a member of a religious order excluded from insurable employment if the person has taken a vow of poverty
Page details
2026-02-17