T4A Slips in Canada: When Your Business Must File for Subcontractors
If your business pays contractors, freelancers, or other self-employed workers, you may have a CRA reporting obligation you did not know about. The T4A slip is how businesses report fees paid for services to non-employees — and getting it wrong can mean penalties at tax time. Many small business owners assume slips are only for employees, but the rules reach much further. This 2026 guide explains when you must issue a T4A, what goes on it, the deadlines, how it differs from a T4 and a T5018, and how to stay onside with the CRA.
Table of Contents
Key Takeaways
- A T4A slip reports fees for services and other income paid to non-employees, such as self-employed contractors.
- Businesses generally must issue a T4A when they pay more than $500 in a year for services to a non-employee.
- Fees for services go in Box 048 of the T4A, and the amount should exclude any GST/HST.
- T4A slips must be issued to recipients and filed with the CRA by the last day of February following the calendar year.
- Construction businesses paying subcontractors report on a T5018 instead of a T4A.
What a T4A slip is
A T4A is a CRA information slip used to report various types of income paid to someone who is not your employee, including fees for services performed by self-employed contractors. Where a T4 reports employment income with tax and deductions withheld, a T4A reports payments to people who handle their own taxes — freelancers, consultants, and other independent workers.
The most relevant box for most businesses is Box 048, “fees for services,” which captures what you paid a contractor for their work. Because contractors are responsible for their own income tax, CPP, and GST/HST, you do not withhold anything — but the CRA still wants the payment reported so it can match it against the contractor’s return. Understanding whether a worker is truly a contractor or actually an employee matters here, and our guide on the difference between a sole proprietorship and incorporation touches on how that status is defined.
When your business must issue a T4A
You generally must issue a T4A when your business pays more than $500 in a calendar year to a non-employee for services. The slip reports the fees in Box 048 and is sent both to the contractor and to the CRA. If you withheld income tax from any payment to a non-employee, a T4A is required regardless of the amount.
There are exceptions and grey areas. Payments to a contractor for goods rather than services, and certain payments already reported on another slip, may not require a T4A. The CRA has historically applied Box 048 reporting unevenly, but the safe, compliant approach is to issue slips for service fees over the threshold. If you regularly pay subcontractors, our tax and accounting services for contractors can set up a process so nothing is missed, and clean records make it painless — which is what our bookkeeping services are designed to deliver.
T4 vs. T4A vs. T5018
Three slips often get confused because they all report payments to workers. The difference comes down to who you paid and what industry you are in.
| Slip | Who it’s for | Tax withheld? |
|---|---|---|
| T4 | Employees | Yes — income tax, CPP, EI |
| T4A | Non-employees (service fees) | No, in most cases |
| T5018 | Construction subcontractors | No |
If you have true employees, you file T4s and remit source deductions — our guide on calculating and reporting payroll remittance covers that process. If your business is in construction and you pay subcontractors, you use the T5018 Statement of Contract Payments instead of a T4A. For most other businesses paying freelancers and consultants, the T4A is the right slip.
T4A deadlines and penalties
T4A slips must be issued to recipients and filed with the CRA on or before the last day of February following the calendar year in which the payments were made. For the 2026 tax year, that means the end of February 2027. Missing this deadline triggers penalties.
The CRA charges late-filing penalties based on the number of slips and how late they are, and additional penalties can apply for failing to file electronically when required. Beyond the dollar cost, missed slips raise flags that can draw further CRA attention. Filing on time and accurately is far cheaper than cleaning up afterward — and it keeps your business off the CRA’s radar, a goal worth protecting given how CRA reporting requirements apply to corporations and sole proprietors alike.
How to prepare and file T4A slips
Preparing T4A slips starts with good records: for each contractor, you need their legal name, address, business or SIN number, and the total you paid them for services during the year, excluding GST/HST. You then enter the service fees in Box 048, produce a slip for each contractor, and file a T4A Summary with the CRA.
The CRA requires most businesses filing more than a handful of slips to file electronically through its online portal. The biggest practical challenge is collecting accurate contractor information before year-end, not the filing itself — chasing down a missing SIN in February is a common headache. Building this into your expense and record-keeping routine throughout the year makes February straightforward. You can confirm current boxes, thresholds, and filing methods on the CRA’s official T4A information for payers.
Common T4A mistakes to avoid
The most common mistake is simply not issuing T4A slips at all, on the assumption that contractors handle their own taxes so no reporting is needed. The second is including GST/HST in the Box 048 amount — you report only the service fees, not the tax. Others include misclassifying an employee as a contractor, using a T4A when a T5018 is required for construction, and collecting contractor details too late to file on time.
Misclassification is the costliest error: if the CRA decides a “contractor” was really an employee, your business can be assessed for unremitted source deductions plus penalties and interest. When the line is unclear, it is worth getting professional advice before year-end rather than defending the position afterward.
Why BBA Tax is the right choice for your T4A filings
BBA Tax is an Ottawa-based accounting and tax firm that works with contractors, self-employed professionals, and incorporated small businesses across the National Capital Region. Information slips like the T4A are routine for us, from determining who needs one to filing accurately and on time — and from spotting the worker-classification issues that create real risk.
Because we handle your bookkeeping, payroll, and tax filings together, we capture contractor payments correctly all year, so February is a non-event rather than a scramble. We make sure you use the right slip, exclude GST/HST from the right boxes, and meet every CRA deadline. Local, CPA-led, and detail-focused, we keep your reporting clean so your business stays compliant and penalty-free.
Conclusion
The T4A slip is one of those quiet obligations that catches businesses off guard — but the rules are manageable once you know them. If you pay more than $500 a year to a non-employee for services, you generally must issue a T4A, report the fees in Box 048 without GST/HST, and file by the end of February. Construction subcontractors go on a T5018 instead, and misclassifying workers is the mistake that costs the most. Keep good records through the year, and your T4A filings become a simple, penalty-free part of running your business.
Frequently Asked Questions
What is a T4A slip used for?
A T4A reports various income paid to non-employees, most commonly fees for services performed by self-employed contractors, in Box 048. Unlike a T4, no income tax, CPP, or EI is withheld, because contractors are responsible for their own taxes.
When does a business have to issue a T4A?
You generally must issue a T4A when you pay a non-employee more than $500 in a calendar year for services, or any amount from which you withheld income tax. The fees are reported in Box 048 and filed with both the contractor and the CRA.
What is the deadline to file T4A slips?
T4A slips must be given to recipients and filed with the CRA by the last day of February following the calendar year of payment. For 2026 payments, that deadline is the end of February 2027, and missing it triggers late-filing penalties.
What is the difference between a T4A and a T5018?
A T4A reports service fees to non-employees in most industries, while a T5018 Statement of Contract Payments is used specifically by construction businesses to report payments to subcontractors. Construction firms use the T5018 instead of a T4A for those payments.
Do I include GST/HST on a T4A?
No. The amount reported in Box 048 should be the fees for services only, excluding any GST/HST the contractor charged. Including the tax is a common error that overstates the payment and can cause mismatches with the contractor’s return.
