CRA forms
The T5018 Slip Explained: Construction Subcontractor Payments
6 monthsafter the end of your reporting period, calendar or fiscal year, to file T5018 slips and the summary.
Sources checked October 20263 min read
Key points
- Filed by businesses whose main activity is construction
- Reports payments to resident subcontractors for construction services
- Needed when a subcontractor is paid more than $500 in the period, before GST or HST
- Due six months after the end of the reporting period
Who files T5018 slips
The T5018 slip, Statement of Contract Payments, is filed by an individual, partnership, trust or corporation whose primary business activity is construction, meaning more than 50% of its income earning activity. It reports what that business paid subcontractors resident in Canada for construction services, whether the work was done in Canada or elsewhere.
A slip, or a listing in place of slips, is required for each subcontractor paid more than $500 in the reporting period, not counting GST or HST. Payments for goods only are left out, and so are payments to non residents, which go on a T4A-NR. If a subcontractor also worked for the business as an employee, that pay goes on a T4.
What the boxes show
The slip itself is short. Most of the work is in keeping a clean record of every payment through the year.
| Box | What it shows |
|---|---|
| 20 | The last day of the reporting period in which the payments were made |
| 22 | Total construction payments to the subcontractor in the period, including GST, HST and PST |
| 24 | The subcontractor's program account number or social insurance number |
The detail that trips people up
The $500 threshold is measured without sales tax, but box 22 includes it. So a subcontractor paid $480 plus GST does not need a slip, while one paid $600 plus GST gets a slip showing the full amount with the tax.
Payments are reported in the period they are made, not when the work was done or invoiced. A cheque written in the first week of the new year belongs to the new period, even for work finished long before.
Reporting period and deadline
A construction business can report on the calendar year or on its own fiscal year, and the slips and the T5018 Summary are due six months after the end of whichever period it uses. Like other information returns, more than five slips have to be filed electronically.
The slips exist so the CRA can check what subcontractors report as income. A missing or wrong slip therefore tends to surface in someone else's review, and the penalties for late slips follow the same scale as T4 and T4A slips.
Quick answers
Do I file T5018 slips if construction is only part of my business?
Only if construction is more than half of your business activity. Otherwise, fees paid to subcontractors go in box 048 of a T4A.
Is GST included in the T5018 amount?
Box 22 includes GST, HST and PST, but the $500 threshold for issuing a slip is measured without them.
When are T5018 slips due?
Six months after the end of the reporting period you use, either the calendar year or your fiscal year.
Related pages
Official sources
Call or email and we will tell you which records we need and what the work costs, in writing, before anything starts.
Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.