--- title: "T5018 Subcontractor Reporting: Who Files and Why CRA Checks" url: https://www.everstonecpa.com/blog/t5018-subcontractor-reporting-construction description: "Construction businesses paying subcontractors may need to file T5018 slips. See who must report and why the CRA cross-checks them against GST/HST returns." type: guide updated: 2026-10-05 summary: "If your business’s primary income comes from construction activities and you pay subcontractors for construction services, CRA generally requires you to file a T5018, Statement of Contract Payments, for each subcontractor you paid during the reporting period. Construction is interpreted broadly, covering trades well beyond general contracting." 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) T5018 Subcontractor Reporting for Construction Businesses Contractors # T5018 reporting: *what construction businesses must file about subcontractors* By EverStone CPA · Updated August 2026 · 7 min read **Quick answer:** If your business’s primary income comes from construction activities and you pay subcontractors for construction services, CRA generally requires you to file a T5018, Statement of Contract Payments, for each subcontractor you paid during the reporting period. Construction is interpreted broadly, covering trades well beyond general contracting. CRA uses T5018 data to cross-match what you say you paid against what your subcontractors reported as income and GST/HST collected, so accuracy on both sides matters. CRA reads both sides of the same payment. **Rather have a CPA handle this?** A CPA at EverStone replies with a straight answer and a fixed fee for your situation. [Get My Fixed Quote →](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form) ## Key takeaways - T5018s apply to businesses whose primary income comes from construction activities. - They report payments made to subcontractors for construction services during the year. - “Construction activity” covers a wide range of trades, not just general contracting. - CRA cross-matches T5018 data against subcontractors’ own reported income and GST/HST filings. - T5018 obligations exist alongside — not instead of — a subcontractor’s own GST/HST registration duties. Construction is one of the few industries with its own dedicated CRA information-reporting regime, and it catches many incorporated contractors off guard. If your business pays subcontractors and construction makes up most of what you do, there’s a real chance you have a T5018 filing obligation you haven’t been meeting — and CRA has specifically built its matching programs around this slip because subcontractor payments in construction are a known area of underreported income. ## What a T5018 is, and why it exists A T5018, Statement of Contract Payments, reports the total amount a business paid to a particular subcontractor for construction services over a reporting period. Unlike a T4A, which applies more generally to certain payments to self-employed individuals across industries, the T5018 regime exists specifically because CRA identified construction as an industry where cash payments and informal subcontracting arrangements made it easy for income to go unreported. The slip itself doesn’t change how the subcontractor is taxed; it simply creates a paper trail CRA can compare against what the subcontractor files. **Want a CPA to handle this for you?** Tell us about your business and get a fixed fee in writing within one business day. See [our published fees](https://www.everstonecpa.com/pricing), or [get a fixed quote](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form). [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form) ## Who has to file The obligation falls on businesses whose primary source of income is construction activity, whether they operate as a corporation, partnership, trust, or individual. It doesn’t matter whether construction is your only line of business — if it’s your primary activity by revenue, and you paid a subcontractor for construction services during the year, a T5018 is generally expected for that payment. Businesses in other industries that occasionally hire a contractor for a renovation or repair are not typically pulled into this regime; it’s aimed squarely at businesses where construction is the core activity. ## What counts as “construction activity” CRA interprets construction activity broadly. It generally includes erecting, excavating, installing, altering, repairing, dismantling, or demolishing buildings, structures, or surface or subsurface construction, along with many of the trades that support that work — framing, electrical, plumbing, drywall, roofing, excavation, and similar services. A business doesn’t need “construction” in its name for the rule to apply; what matters is what the business actually does and where its revenue primarily comes from. Not sure if you owe T5018s? Every contracting business’s subcontractor mix is different. Send an enquiry to a CPA and get a straight answer — plus a fixed quote before any work starts. [Send an Enquiry →](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form) [See fixed fees](https://www.everstonecpa.com/pricing) ## Reporting periods A business can choose to report on a calendar-year basis or align its T5018 reporting to its own fiscal year — whichever it selects, it should apply that choice consistently from year to year rather than switching back and forth. The completed information return, including the T5018 slips for each subcontractor paid during the period, is generally due within six months of the end of the chosen reporting period. Because this deadline doesn’t necessarily line up with your T2 corporate filing deadline, it’s easy for a busy contracting business to lose track of it separately. Work out your own date with the [T5018 deadline calculator](https://www.everstonecpa.com/forms/t5018#deadline-checker). ## Why CRA cross-matches T5018s against subcontractor returns Once T5018 slips are filed, CRA has a record of what every general contractor or construction business says it paid each subcontractor. That record gets compared against what the subcontractor reported as business income on their own return, and against the GST/HST that subcontractor collected and remitted, if they’re registered. A mismatch in either direction — a payer who under-reports, or a subcontractor who under-reports income they were clearly paid for — tends to surface an audit for one or both parties. This is part of why [certain patterns tend to trigger CRA’s attention](https://www.everstonecpa.com/blog/cra-audit-triggers-small-business) in construction more than in many other industries. ## How this interacts with GST/HST registration T5018 reporting and GST/HST registration are two separate obligations that often surface together. If a subcontractor you’re paying is earning more than the small-supplier threshold, CRA expects them to be registered for GST/HST and charging it on their invoices — and because your T5018 filing shows exactly what you paid them, it can make it obvious when a subcontractor should be registered but isn’t. As the payer, it’s worth confirming your subcontractors’ GST/HST status before you rely on their invoices for input tax credits. Our [guide to GST/HST registration](https://www.everstonecpa.com/blog/gst-hst-registration-guide-small-business) covers the threshold and timing rules in more detail, and the guide to [construction holdbacks](https://www.everstonecpa.com/blog/construction-holdbacks-accounting-canada) explains why the tax on a retained holdback is not remitted when you invoice it. ## The bottom line T5018 reporting is one of the more overlooked compliance obligations in the construction industry, partly because it isn’t as widely discussed as GST/HST or payroll. If construction makes up most of your business and you pay subcontractors, it’s worth confirming your filing history is current — both because the penalties for missed information returns add up, and because accurate T5018s protect you if CRA later questions a subcontractor’s own reporting. Sources - [Canada Revenue Agency — GST/HST for businesses](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html) - [Canada Revenue Agency — Small businesses and self-employed income](https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-income.html) - [Canada Revenue Agency — Forms and publications](https://www.canada.ca/en/revenue-agency/services/forms-publications.html) This article is general information for Canadian business owners and is current as of July 2026. It is not tax, legal or accounting advice, and it does not create a client relationship. Tax rules change and your situation is unique, so please [speak with a CPA](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form) before acting on anything here. About this article **EverStone CPA** Prepared and reviewed by a Chartered Professional Accountant at EverStone CPA, a CPA firm working with small and midsized 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=corporate-tax#enquiry-form) Working through this locally? We advise owners on it as a [Surrey construction accountant](https://www.everstonecpa.com/accountant-surrey). Working through this locally? We advise owners on it as a [CPA for Chilliwack owners](https://www.everstonecpa.com/accountant-chilliwack). ### Related articles [GST/HST registration guide →](https://www.everstonecpa.com/blog/gst-hst-registration-guide-small-business) [CRA audit triggers →](https://www.everstonecpa.com/blog/cra-audit-triggers-small-business) [Accounting for contractors →](https://www.everstonecpa.com/contractor-accountant) [Construction accounting services →](https://www.everstonecpa.com/construction-accounting-bc) [Free T5018 subcontractor tracker (Excel) →](https://www.everstonecpa.com/t5018-subcontractor-tracker) [Every slip deadline in one place →](https://www.everstonecpa.com/t-slip-deadlines)[T5018: Statement of Contract Payments →](https://www.everstonecpa.com/forms/t5018)[Restaurant tips and payroll: controlled versus direct tips, CPP, EI and the T4 →](https://www.everstonecpa.com/blog/restaurant-tip-reporting-payroll-canada)An accountant for construction companies in BC, Alberta, Ontario and Manitoba → FAQ ## Frequently asked questions **What is a T5018 slip?** A T5018, Statement of Contract Payments, is an information slip that businesses primarily engaged in construction activities use to report payments made to subcontractors for construction services during the reporting period. **Who has to file T5018s?** Businesses whose primary source of business income comes from construction activities, and that make payments to subcontractors for construction services, are generally required to file T5018 information returns for those payments. **What counts as construction activity for T5018 purposes?** Construction activity is interpreted broadly and generally includes erecting, excavating, installing, altering, repairing, dismantling, or demolishing buildings or other structures, along with many related trades. A business doesn’t need to call itself a “construction company” for the rules to apply if construction is its primary activity. **What reporting period do T5018s cover?** A business can choose to report on either a calendar-year basis or its own fiscal year, but once a reporting period is chosen it should be used consistently, and the completed return is generally due within six months of the end of that reporting period. **How does T5018 reporting interact with GST/HST registration?** T5018 slips report the amounts paid to a subcontractor, and CRA can compare those amounts against the GST/HST the subcontractor collected and remitted, and against the income the subcontractor reported. A subcontractor who should be registered for GST/HST but isn’t can be identified this way. **What happens if I have never filed T5018s?** The obligation does not disappear, and penalties for missed information returns accumulate slip by slip. The practical step is to confirm how far back the obligation runs and get current, rather than simply starting fresh this year. Because CRA cross-matches these slips against subcontractor filings, gaps in your history are visible from the other side of the payment as well. **Do I still file a T5018 if my subcontractor is incorporated?** Yes. The slip reports payments for construction services regardless of whether the subcontractor operates as an individual, a partnership or a corporation. What matters is that construction is your primary activity and the payment was for construction services. The subcontractor’s legal form changes how they report the income, not your obligation to report the payment. ## Not sure your T5018 filings are current? We handle T5018, GST/HST, and payroll compliance for construction businesses across BC. Send an enquiry. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form)[Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) **Run your own numbers with the free calculators:** [Payroll deduction calculator](https://www.everstonecpa.com/payroll-deduction-calculator) · [work out the GST/HST](https://www.everstonecpa.com/gst-hst-calculator) · [estimate your incorporation savings](https://www.everstonecpa.com/incorporation-calculator) [← T4, T4A and T5 slips: deadlines, who gets which, and what late filing costs](https://www.everstonecpa.com/blog/t4-t4a-t5-slip-filing-deadlines-canada) [Taxable vs non-taxable benefits — what goes on the T4 →](https://www.everstonecpa.com/blog/taxable-vs-non-taxable-benefits-canada) More on this subject: [all our contractor guides](https://www.everstonecpa.com/contractor-accounting-hub). ## 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=corporate-tax#enquiry-form). A construction year end usually has equipment in it as well as subtrades, and [the first-year claim on plant and vehicles](https://www.everstonecpa.com/blog/half-year-rule-cca-canada) covers the deduction side. The slips are one obligation among three that share a deadline; [the slips beside the holdbacks and the clearance letters](https://www.everstonecpa.com/blog/surrey-construction-t5018-holdbacks-worksafebc-year-end) sets out all of them. [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 ★★★★★ “…have been completing my bookkeeping, taxes and financials for the last 2 years and they have been amazing. Thank you!” R. H. · Google review --- Source: https://www.everstonecpa.com/blog/t5018-subcontractor-reporting-construction Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online