What is T4A? What is T5018?
T4A and T5018 forms are used to record payments made to subcontractors during either the previous fiscal or calendar year.
What is T4A?
- The T4A form (PDF download) is a record of what you paid to a subcontractor during the previous calendar year.
- T4A forms must be filed with Canada Revenue Agency (CRA) on or before the last day of February after the applicable calendar year.
- You’ll also need to provide copies of the T4A to your suppliers.
- Examples are fees paid to your freelance bookkeeper, accountant and lawyer or janitor. Service fees for tutors or examiners for educational institutions would also be reported here.
- T4A – Box 020 or Box 048
Box 20 – Self Employed Commissions or Box 48 – Fees for Services
- If you receive a T4A with Box 20 or Box 48 amounts, you are indeed self-employed for tax purposes as both of these boxes are used exclusively to report self-employment income. You’re either a contractor or you’ve earned income from commission-based activities.
- Having a T4A with Box 20 or 48 means that you’re required to complete a bit of extra info at tax time. Since you’re self-employed, you’ll complete the business form T2125 – Statement of Business Activities.
What is T5018?
- The T5018 form (PDF download) is a record of what you paid a subcontractor for construction services during the previous calendar or fiscal year.
- It is a Taxable Income. Payments of less than $500 per year per subcontractor do not have to be reported.
- The T5018s and T5018 Summary must be filed with the CRA on or before the date that is six months after the end of your calendar or fiscal year.
- The payer is not required to, but may provide you with a copy of the T5018 to each subcontractor. The payer must give the Canada Revenue Agency (CRA) a copy.
- As a subcontractor, it’s your responsibility to report all money received on your tax return (normally on Schedule T2125 for non-incorporated subcontractors).
- Examples include the erection, excavation, installation, alteration, modification, repair, improvement, demolition, destruction, dismantling or removal of all, or any part, of a building, structure, surface or sub-surface construction, or any similar property if the person’s business income for that reporting period is derived primarily from those activities.
Box 22 – Construction subcontractor payments
- Box 22 of the T5018 shows the total amount of payments made by a contractor in their selected reporting period.
- For unincorporated entities, the income should be reported on Form T2125, Statement of Business or Professional Activities, as revenue on line 4A.
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