If Wealthsimple Tax prompts you to add a T2125 when entering a T4 or T4A, it means the slip issuer considers you self-employed with business income rather than an employee with employment income.

Self-employed individuals must report business income on a T2125. If you're new to reporting business income, follow our step-by-step guide for completing the T2125 section.

The distinction between employee and self-employed status can be complex. The CRA provides detailed information on this topic.

If you believe you're not self-employed:

• You can report the amount as other employment income on line 10400 using the Tips, Royalties, Occasional Earnings, Etc. section
• Or as other income on line 13000 using the Other Income (Line 13000) section
• If you choose either option, remove the amount from your slip in Wealthsimple Tax

Note: It's your responsibility to report income correctly. Using lines 10400 or 13000 when the CRA expects a T2125 may lead to a reassessment.

For help entering T4 or T4A information in Wealthsimple Tax, contact our support team. For advice on how to report your income or whether you should file a T2125, please consult the CRA individual enquiries line or a tax expert.