What is the difference between a Type A and Type B Payment?

Type A

A Type A stipend is a fixed payment made to an individual registered in a graduate program.  The individual shall be actively involved in the research of a faculty member in their related area of studies.  It is not paid in exchange for quantifiable work performed nor for financial gain.  There are no deductions at the time of payment, and the individual will receive a T4A for the amount paid during the calendar year. These types of payments will be paid in full to the student’s account when all approvals are complete.

Type B

A Type B salary is paid when an employee/employer relationship exists and a quantifiable amount of work has been performed.  Salary payments, whether one-time or recurring are subject to mandatory source deductions and will include 4% vacation pay, this type of income will receive a T4 denoting the total amount of employment earnings paid during the calendar year.  These types of payments will be paid via payroll services when all approvals are complete.  Payments will be paid in equal amounts throughout the term.