---
title: "T4 vs T4A vs T5018: Which Slip for Which Payment"
url: https://www.everstonecpa.com/blog/t4-vs-t4a-vs-t5018
description: "T4, T4A or T5018? Which slip fits employees, contractors and subcontractors, the February and six-month deadlines, and the penalties. Check the table."
type: guide
updated: 2026-11-11
summary: "A T4 reports what you paid an employee: salary, wages, bonuses, commissions and taxable benefits, with the CPP, EI and tax you withheld. A T4A reports fees for services paid to a self-employed person or business, in box 048, with nothing withheld. A T5018 reports payments to subcontractors for construction services, and only a business whose primary income is construction files it."
faq_count: 7
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) T4 vs T4A vs T5018: which slip for which payment

Payroll

# T4 vs T4A vs T5018: *which slip for which payment*

By EverStone CPA · Updated November 2026 · 5 min read

**Quick answer:** A T4 reports what you paid an employee: salary, wages, bonuses, commissions and taxable benefits, with the CPP, EI and tax you withheld. A T4A reports fees for services paid to a self-employed person or business, in box 048, with nothing withheld. A T5018 reports payments to subcontractors for construction services, and only a business whose primary income is construction files it. T4s and T4As are due on the last day of February; T5018s are due six months after the end of the reporting period you chose.

**Slips for staff and subcontractors in one run?** We prepare and e-file the T4s, T4As and T5018s from the payroll and the books, with the summary reconciled to the remittances. Payroll is part of bookkeeping from $325 a month. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form)

## Key takeaways

- T4: employees. Issue one when remuneration in the year was more than $500 or you deducted CPP, EI or tax.
- T4A: fees for services to the self-employed, box 048, when the year’s payments were more than $500. No withholding, and GST/HST is left out.
- T5018: construction subcontractors, filed only by a payer whose primary business income is construction. Over $500 per subcontractor; the amount reported includes GST/HST.
- T4 and T4A: due the last day of February. T5018: six months after the end of your chosen reporting period.
- Late-filing penalties for information returns run from a $100 minimum to a $7,500 maximum, per day late and by slip count.

## The decision in one table

Which slip, for whom, with the threshold and the due date.

| | T4 | T4A | T5018 |

| Who receives it | An employee | A self-employed person or business paid fees for services (and pension, lump-sum and other recipients) | A subcontractor paid for construction services |

| Who files it | Any employer | Any payer | Only a payer whose primary source of business income is construction (more than 50%) |

| What it reports | Salary, wages, tips, bonuses, commissions, taxable benefits, and the deductions taken | Fees for services in box 048, excluding GST/HST | Total contract payments in box 22, including GST/HST and PST |

| Threshold | More than $500 in the year, or any CPP, EI or tax deducted | More than $500 in the year | More than $500 in the period, counted before GST/HST |

| Withholding | CPP, EI and income tax | None | None |

| Period | Calendar year | Calendar year | Calendar year or fiscal period, your choice |

| Due date | Last day of February | Last day of February | Six months after the end of the reporting period |

Where a due date falls on a Saturday, Sunday or a public holiday recognised by the CRA, the return is on time if received or postmarked on the next business day.

## T4: employees

The T4 identifies all of the remuneration paid by an employer to an employee in a calendar year: salary or wages, tips, bonuses, taxable benefits and allowances, and employment commissions, together with the CPP, EI and income tax deducted. You must issue one if the total remuneration in the year was more than $500, or if you deducted CPP, EI or tax from any payment, whatever the amount.

The owner of a corporation who takes a salary is an employee of it, and gets a T4 like anyone else. Dividends do not go on a T4; they go on a T5. The slips and the summary are due on the last day of February after the year, and most employers must file them electronically. Our guide to [T4, T4A and T5 deadlines](https://www.everstonecpa.com/blog/t4-t4a-t5-slip-filing-deadlines-canada) covers the filing mechanics and what late filing costs, and the [payroll year-end checklist](https://www.everstonecpa.com/blog/payroll-year-end-checklist-canada) runs through the reconciliation first.

**Year-end slips without the scramble?** We reconcile the payroll to the remittances, prepare the T4s and T4As, and e-file the summaries before the deadline, with payroll part of bookkeeping from $325 a month. See [our payroll service](https://www.everstonecpa.com/payroll-services-canada) or [get a 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)

## T4A: fees for services and other income

The T4A covers payments that are not employment income: pension and superannuation, lump sums, self-employed commissions, annuities, research grants, and, in box 048, fees or other amounts for services. For an owner-managed business the box 048 case is the one that comes up: the consultant, the designer, the IT contractor, the cleaner who invoices you as a business.

The CRA’s rule for fees for services: report the payments on a T4A slip in box 048 where the total for the year was more than $500, do not include GST/HST or PST in the amount, and do not withhold CPP, EI or income tax. The slip is a report, not a remittance. It is due on the last day of February, with the T4s.

The slip does not decide the relationship. Issuing a T4A to someone who is in substance an employee does not make them a contractor, and the CRA tests the facts, not the paperwork. The test is set out in [employee or contractor: the CRA’s classification](https://www.everstonecpa.com/blog/employee-vs-contractor-cra-worker-classification), and the paperwork that supports each side in [employment contract versus contractor agreement](https://www.everstonecpa.com/blog/employment-contract-vs-contractor-agreement). The form itself is described on [our T4A form page](https://www.everstonecpa.com/forms/t4a).

## T5018: construction subcontractors

The T5018 exists because of the construction industry. A business whose primary source of business income is construction (more than 50% of its income-earning activity) must report payments to subcontractors for construction services where the total in the reporting period was more than $500 per subcontractor. The $500 is counted before GST/HST, but the amount reported in box 22 includes GST/HST and PST where applicable. Goods-only purchases are not reported; a mixed invoice of goods and services is.

Unlike the other two slips, the T5018 can follow a calendar year or the payer’s fiscal period, and it is due six months after the end of whichever you chose. A business with a 30 June year-end that reports on its fiscal period files by 31 December. A business that reports on the calendar year files by 30 June.

A general contractor who also pays an office cleaner does not put the cleaner on a T5018, because cleaning is not a construction service; that payment is a T4A box 048 case if it exceeds $500. And a business that is not primarily construction (a retailer that renovates its store, a landlord that hires a roofer) does not file T5018s at all. The [T5018 guide](https://www.everstonecpa.com/blog/t5018-subcontractor-reporting-construction) covers what counts as construction activity and how the CRA matches the slips to subcontractor returns, and the form is on [our T5018 form page](https://www.everstonecpa.com/forms/t5018).

## Three examples

**The employee.** A landscaping company pays a crew member $48,000 in wages and a $1,000 bonus, deducting CPP, EI and tax each pay. That is a T4: $49,000 in box 14, the deductions in boxes 16, 18 and 22, due the last day of February. The company’s employer CPP and EI are a cost, not a slip entry.

**The contractor.** The same company pays a self-employed bookkeeper $7,200 plus GST over the year, on invoices. That is a T4A with $7,200 in box 048, nothing withheld, GST excluded, due the last day of February. If the bookkeeper were in substance an employee (set hours, company equipment, no other clients), the right answer is a T4 with deductions, and the T4A would not protect the company from the reassessment.

**The construction subcontractor.** A framing company, whose income is entirely construction, pays a drywall subcontractor $64,000 plus GST during its fiscal year ending 31 March. That is a T5018 with $67,200 in box 22 (the $64,000 plus 5% GST), filed by 30 September. If the framing company instead paid an accountant $4,000 for the year-end, that is a T4A, not a T5018, because accounting is not a construction service.

## Penalties for late or missing slips

The late-filing penalty for information returns is charged per day late and scaled by the number of slips, from a minimum of $100 to a maximum of $7,500 for the largest filers. For a business filing up to 50 slips, the maximum is $1,000 per return type. The penalty applies to the T4, T4A and T5018 returns alike, and a business that files late in several types pays it on each. Filing on paper where electronic filing is required carries its own penalty. A return with the wrong slip type is a return that was not filed, so a T4A issued where a T4 was due does not stop the clock.

## The bottom line

Employees get a T4 with deductions. Self-employed service providers get a T4A in box 048 with nothing withheld. Construction subcontractors get a T5018 from a construction payer, with GST/HST inside the figure and a six-month deadline. The slip follows the relationship; it does not create it. Classify the worker first, then choose the slip.

Which slip a given payment needs depends on the relationship and your business; [ask about your own situation](https://www.everstonecpa.com/quick-question) and a CPA replies free, usually the same business day. Every filing date is on [the T-slip deadlines page](https://www.everstonecpa.com/t-slip-deadlines).

Sources

- [Canada Revenue Agency — T4 slip, information for employers (what to report; the $500 rule)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/completing-filing-information-returns/t4-information-employers/t4-slip.html)

- [Canada Revenue Agency — T4A slip, information for payers (what to report; the $500 rule)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/completing-filing-information-returns/t4a-information-payers/t4a-slip.html)

- [Canada Revenue Agency — Payments of fees for services (box 048, no GST/HST, no withholding)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/special-payments/fees-other-amounts-services.html)

- [Canada Revenue Agency — T5018 slip, statement of contract payments (who files; $500; box 22 includes GST/HST)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/completing-filing-information-returns/t5018-slip-statement-contract-payments.html)

- [Canada Revenue Agency — When to file information returns (last day of February; T5018 six months; weekend rule)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/file-information-returns-slip-summaries/when-to-file.html)

- [Canada Revenue Agency — RC4120, Employers’ Guide: Filing the T4 Slip and Summary (late-filing penalties)](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4120/employers-guide-filing-t4-slip-summary.html)

General information for Canadian business owners, current as of November 2026; not tax, legal or accounting advice, and no client relationship. Rules change, so [speak with a CPA](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form) before acting.

About this article

**EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. [About the firm →](https://www.everstonecpa.com/about) · [Send an enquiry →](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form)

The T4s, T4As and T5018s are prepared from the same books, which is why they are part of [payroll at EverStone](https://www.everstonecpa.com/payroll-services-canada).

### Keep reading

[T4, T4A and T5 deadlines →](https://www.everstonecpa.com/blog/t4-t4a-t5-slip-filing-deadlines-canada)
[T5018 subcontractor reporting →](https://www.everstonecpa.com/blog/t5018-subcontractor-reporting-construction)
[Employee or contractor: the CRA test →](https://www.everstonecpa.com/blog/employee-vs-contractor-cra-worker-classification)
[Payroll year-end checklist →](https://www.everstonecpa.com/blog/payroll-year-end-checklist-canada)

FAQ

## Frequently asked questions

**What is the difference between a T4 and a T4A?**

A T4 reports employment income paid to an employee, with the CPP, EI and tax deducted. A T4A reports other income, including fees for services paid to a self-employed person in box 048, with nothing withheld and GST/HST excluded. The slip follows whether the worker is an employee or self-employed.

**What is the difference between a T4A and a T5018?**

Both report payments to non-employees. A T5018 is filed only by a business whose primary income is construction, for payments to subcontractors for construction services, and the amount includes GST/HST. A T4A box 048 covers fees for services from any other payer, or for non-construction services, and excludes GST/HST.

**Do I need to issue a T4A to a contractor?**

If you paid a self-employed person or business more than $500 in the calendar year for services, the CRA’s fees-for-services rule says to report it on a T4A in box 048, excluding GST/HST, with nothing withheld. The slip is due on the last day of February.

**When are T5018 slips due?**

Six months after the end of the reporting period you chose: 30 June for a calendar-year reporter, or six months after your fiscal year-end if you report on the fiscal period.

**Does the T5018 amount include GST/HST?**

Yes. Box 22 includes GST/HST and PST where applicable. The $500 threshold for whether a slip is needed is measured before GST/HST.

**What is the penalty for filing T4s late?**

A per-day penalty scaled by the number of slips, from a $100 minimum to a $7,500 maximum. A business with up to 50 slips faces up to $1,000 per late return type. Filing on paper where electronic filing is required adds a separate penalty.

**My subcontractor is incorporated. Do I still file a T5018?**

Yes, if you are a construction business and paid the subcontractor’s corporation more than $500 for construction services. The T5018 applies to individuals, partnerships and corporations alike.

## Want the slips filed right, on time?

Tell us how many staff and subcontractors you pay and whether you are in construction. A CPA replies by email within one business day with how we would run the year-end and a fixed fee for payroll and the slips.

[Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form)[Book a Paid Advice Call](https://www.everstonecpa.com/advice-call)

## Have a question about this?

Ask free through [the quick-question form](https://www.everstonecpa.com/quick-question); a CPA replies by email within one business day. For a proper look, a 45-minute **Advice Call** with a CPA is $225 plus applicable tax, booked by email, credited against your first invoice if you become a client within 60 days. Want an accountant to take it on? [Send an enquiry](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form).

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**Run your own numbers with the free calculators:**
[Incorporation savings calculator](https://www.everstonecpa.com/incorporation-calculator) · [check a paycheque’s deductions](https://www.everstonecpa.com/payroll-deduction-calculator) · [check your GST/HST math](https://www.everstonecpa.com/gst-hst-calculator)

[← T4, T4A and T5 deadlines: when slips are due](https://www.everstonecpa.com/blog/t4-t4a-t5-slip-filing-deadlines-canada)
[T5018 subcontractor reporting: who files and why CRA checks →](https://www.everstonecpa.com/blog/t5018-subcontractor-reporting-construction)

---
Source: https://www.everstonecpa.com/blog/t4-vs-t4a-vs-t5018
Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online