--- title: "Surrey Construction Year End: T5018, Holdbacks, WorkSafeBC" url: https://www.everstonecpa.com/blog/surrey-construction-t5018-holdbacks-worksafebc-year-end description: "A Surrey construction corporation’s year end: T5018 slips, lien holdbacks on the balance sheet, and WorkSafeBC clearance for every sub. Read on." type: guide updated: 2026-10-08 summary: "A Surrey construction corporation’s year end is decided by three filings that a service business never touches. T5018 slips report what was paid to subcontractors, and the CRA matches them. Lien holdbacks — the portion of each progress payment withheld under the Builders Lien Act — sit on the balance sheet as receivables and payables and have to line up with revenue recognized." faq_count: 3 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Blog](https://www.everstonecpa.com/blog) Construction accounting in Surrey Surrey # Surrey construction: *T5018, holdbacks and WorkSafeBC in one year end* By EverStone CPA · Published September 2026 · 3 min read **Quick answer:** A Surrey construction corporation’s year end is decided by three filings that a service business never touches. T5018 slips report what was paid to subcontractors, and the CRA matches them. Lien holdbacks — the portion of each progress payment withheld under the Builders Lien Act — sit on the balance sheet as receivables and payables and have to line up with revenue recognized. And every subcontractor paid needs a WorkSafeBC clearance letter on file, or the company can become liable for the sub’s premiums. Get those three right and the T2 follows. ## T5018: the slip contractors meet by letter Any business whose main activity is construction and that pays subcontractors for construction services has to report those payments on T5018 slips, filed with a summary within six months of the fiscal year end. The CRA uses them to match the subcontractor’s reported income, so late or missing slips are found. The slip requires the sub’s business number or SIN, which is easier to collect at the first invoice than at year end. Our [holdbacks guide](https://www.everstonecpa.com/blog/construction-holdbacks-accounting-canada) and the [Surrey contractor page](https://www.everstonecpa.com/contractor-accountant-surrey) go into the mechanics. ## Holdbacks on the balance sheet Under BC’s Builders Lien Act a portion of each progress payment is held back until the lien period runs. For the contractor that is money earned but not yet collectible — a holdback receivable — and for the payments it makes to its own subs, a holdback payable. Both belong on the year-end balance sheet, consistent with the revenue recognized to date, and the GST on a held-back amount has its own timing. Bonding companies read the holdback and work-in-progress lines before anything else; [financial statement preparation in Surrey](https://www.everstonecpa.com/financial-statements-surrey) covers how EverStone presents them. **Incorporated, or about to be?** We prepare the T2 and year-end statements at a fixed fee quoted in writing before any work starts, and plan how you pay yourself. See [our corporate tax work](https://www.everstonecpa.com/tax-services), or [get a year-end quote](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form). [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form) ## WorkSafeBC clearance A prime contractor that pays a subcontractor without a valid clearance letter can be assessed for the sub’s unpaid WorkSafeBC premiums. The letter is free and takes minutes to check online; the failure is not checking, or checking once and not again for a sub used all year. Clearance status at each payment date is the standard, and the file should show it. ## Employee or subcontractor, decided before the first cheque Surrey’s construction base runs on subs, and the CRA’s view of whether a given worker is really an employee does not depend on the label. Control, tools, chance of profit and integration decide it. The decision changes which slip is issued (T4 or T5018), whether source deductions are owed and who carries WorkSafeBC. See [subcontractor vs employee for trades](https://www.everstonecpa.com/blog/subcontractor-vs-employee-cra). ## Related [Contractor accountants in Surrey](https://www.everstonecpa.com/contractor-accountant-surrey) · [Small business accountant in Surrey BC](https://www.everstonecpa.com/accountant-surrey) · [Financial statements in Surrey](https://www.everstonecpa.com/financial-statements-surrey) · Contractors across Canada [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form) [See the fixed fees](https://www.everstonecpa.com/pricing) Sources: [CRA — T5018 Statement of Contract Payments](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/completing-filing-information-returns/t5018-slip-statement-contract-payments.html) · [WorkSafeBC — manage your account and clearances](https://www.worksafebc.com/en/insurance/manage-account) · [Builders Lien Act (BC)](https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/97045_01). General information, not advice. Common questions ## Frequently asked questions about construction accounting in Surrey **Do I have to file T5018s if I only used two subs?** If construction is your main business activity and you paid subcontractors for construction services, yes, regardless of how many. The threshold is about your activity, not the count. **Are holdbacks income when I invoice them or when I collect them?** They are recognized with the revenue they belong to and shown as a receivable until collectible; the GST on a holdback becomes payable on its own timing under the excise rules. The accounting and the GST do not move together, which is why the books track holdbacks separately. **What happens if a sub I paid had no WorkSafeBC coverage?** WorkSafeBC can assess you for premiums on the amount you paid that sub. A clearance letter obtained before each payment is what prevents it. ## Have a question about this? Ask it free through [the quick-question form](https://www.everstonecpa.com/quick-question) and a CPA replies by email within one business day. For something that needs a proper look, a one-off **Advice Call** is a paid 45-minute session with a Chartered Professional Accountant: $225 plus GST, booked by email or phone with a secure payment link. It is credited against your first invoice if you become a client within 60 days. Looking for an accountant to take this on rather than an answer? [Send an enquiry](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form). [Ask a Free Question](https://www.everstonecpa.com/quick-question) [Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) Email info@everstonecpa.com ★★★★★ “…He is very knowledgeable and has saved me tons in taxes by restructuring my group of companies — the best accountant I've worked with in the last 10 years, after switching from three different firms.” Matt Hildebrandt · Google review --- Source: https://www.everstonecpa.com/blog/surrey-construction-t5018-holdbacks-worksafebc-year-end Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online