--- title: "St. Catharines Contractor Accountant: Holdbacks, T5018, WSIB" url: https://www.everstonecpa.com/contractor-accountant-st-catharines description: "Contractor accountant for St. Catharines and Niagara: 10% holdbacks, progress billing, T5018 slips, WSIB, 13% HST and the T2. Send an enquiry." type: service-in-a-city updated: 2026-10-02 summary: "St. Catharines contractors work under Ontario’s Construction Act, which has the payer hold back 10% of each payment until the job is complete, so revenue and cash separate at every year-end. Add progress billing, T5018 slips for subcontractors, WSIB coverage and 13% HST on the work, and the file needs a contractor’s accountant." 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/) [Accountant in St. Catharines](https://www.everstonecpa.com/accountant-st-catharines) Construction contractors Construction & trades · St. Catharines # Contractor accountant in *St. Catharines* Niagara contractors build homes in new subdivisions, fit out wineries and restaurants, work on farm buildings and greenhouses, and follow the season as it opens and closes. EverStone is an [accountant for incorporated contractors](https://www.everstonecpa.com/contractor-accountant) and a [St. Catharines small business accountant](https://www.everstonecpa.com/accountant-st-catharines), at fixed fees, online. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) **Quick answer:** St. Catharines contractors work under Ontario’s Construction Act, which has the payer hold back 10% of each payment until the job is complete, so revenue and cash separate at every year-end. Add progress billing, T5018 slips for subcontractors, WSIB coverage and 13% HST on the work, and the file needs a contractor’s accountant. EverStone handles all of it, with bookkeeping, payroll and the T2 usually bundled at $500–$700 a month. For a one-owner St. Catharines contractor, monthly bookkeeping, payroll and the year-end T2 with statements usually cost from $500 to $700 a month all-in. ## The 10% holdback and the year it belongs to Under the Construction Act the owner or general contractor retains 10% of each payment until the work is finished and the holdback period has passed. For the contractor that money is earned and invoiced, but not yet collected, and sometimes not collectable for months. At year-end the question is not whether the holdback exists but which year the income belongs to and how it sits on the balance sheet. We track holdbacks receivable and payable job by job, so the ones owed to you and the ones you are holding from your own subcontractors are both visible, and we review them at the cut-off. [Construction holdbacks](https://www.everstonecpa.com/blog/construction-holdbacks-accounting-canada) explains the accounting in more detail. ## Progress billing and work in progress Larger jobs are billed in stages: a draw on signing, another at framing, another at close-in. Those draws rarely match the work actually done on the day the year ends. A job billed ahead of its progress has income the business has not yet earned; a job behind its billing has earned income not yet invoiced. Both distort the year if nobody looks. A simple work-in-progress schedule at year-end compares cost to date, estimated cost to complete and billings on each open job. It turns the return from a record of invoices into a record of the year’s actual work, and it is the schedule lenders and bonding companies ask for first. Those same readers usually want full financial statements, and for an owner-managed contractor the right form is normally a compilation engagement: statements prepared from your records with a report that says plainly they carry no audit or review assurance. Where a bonding company or a general contractor’s vendor check asks for more, that is a different engagement, and it is better to know before the deadline than after. Statements come together much faster when the books have been kept current all year, which is the real reason to close every month even in the busy season. See [compilation engagements](https://www.everstonecpa.com/compilation-engagement-canada). ## T5018 slips for the subcontractors you pay A business whose main activity is construction reports payments to subcontractors for construction services on T5018 slips. The return is due six months after the end of the reporting period, and you can report on a calendar year or on your fiscal year, as long as you stay consistent. The slips need each subcontractor’s name, address and business number, which is far easier to collect before the first payment than after the last. The [T5018 tracker](https://www.everstonecpa.com/t5018-subcontractor-tracker) and [subcontractor reporting guide](https://www.everstonecpa.com/blog/t5018-subcontractor-reporting-construction) set out the details. ## WSIB and the clearance you should hold Most construction businesses in Ontario need WSIB coverage, and in construction the rules reach further than in most industries, including coverage for many owners and partners who would be exempt elsewhere. The hiring contractor can also be made responsible for premiums a subcontractor failed to pay. The practical protection is a clearance certificate for each subcontractor, checked before you pay and kept with their invoice. WSIB is a separate account from the CRA and from employer health tax, with its own registration, premiums by classification and reporting dates. We keep those dates on the same calendar as everything else. ## HST on construction work Construction services and materials are taxable at 13% HST in Ontario, and the HST you pay on materials, tools, fuel and subcontractors is recovered through input tax credits. Holdbacks change the timing: HST on a holdback generally becomes payable when the holdback is released or becomes due, not when the progress bill is first issued. A contractor who remits HST on the full invoice at once is funding the CRA ahead of time. Subcontractors who are not registered do not charge HST, and it is worth checking a sub’s registration before assuming a credit is available. [Input tax credits](https://www.everstonecpa.com/blog/input-tax-credits-itc-canada-guide) covers what a claim needs. ## Employee or subcontractor on your crew A labourer who works only for you, on your schedule, with your tools, is an employee whatever the invoice says. The CRA looks at control, tools, the chance of profit or loss and the right to send a substitute. When it reclassifies a worker, the business owes the CPP and EI that should have been deducted, with penalties and interest, and the WSIB position shifts with it. We look at each arrangement before it becomes a pattern. See [subcontractor versus employee](https://www.everstonecpa.com/blog/subcontractor-vs-employee-cra). ## Winter, equipment and the tax bill Trucks, trailers, excavators and tools are depreciated through capital cost allowance, and a purchase only produces a deduction once the asset is available for use. Buying equipment in the last week of the year for the deduction works only if it is on site and in use. Instalments follow the same seasonal logic: a strong summer can produce an instalment notice that arrives when the ground is frozen and cash is tight. We plan purchases and instalments against the season you actually have. [CCA classes](https://www.everstonecpa.com/blog/capital-cost-allowance-cca-classes-canada) sets out the rules. About this article **EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. Updated September 2026 . [About the firm](https://www.everstonecpa.com/about) · [Send an enquiry](https://www.everstonecpa.com/book-online) ## What a St. Catharines contractor has to get right What a St. Catharines contractor has to get right The items that decide a contractor’s year — for a business operating in St. Catharines, Ontario | Item | Why it matters | | Holdbacks | 10% retained on each payment until completion, tracked in both directions | | Progress billing and WIP | Billings and work done rarely match at the year-end cut-off | | T5018 slips | Construction payments to subcontractors, due six months after the reporting period | | WSIB | Coverage, premiums and a clearance certificate for each subcontractor | | Sales tax where you operate | 13% HST, a single registration and a single return | Source: [Construction and trades accounting](https://www.everstonecpa.com/construction-trades-accounting). General information, not advice. Other services for St. Catharines businesses: [personal tax](https://www.everstonecpa.com/personal-tax-accountant-st-catharines). ## Remote contractor accounting EverStone is a fully virtual, one-CPA firm, serving St. Catharines clients entirely online. **There is no St. Catharines office and no local staff.** Meetings are held by video or phone, documents are exchanged by secure upload link and e-signature, and no visit is required at any point. Subcontractor payments, holdbacks and equipment costs are tracked as they happen rather than reconstructed at year-end. Common questions ## St. Catharines accounting for construction contractors FAQ **When are T5018 slips due?** Six months after the end of the reporting period, which can be the calendar year or your fiscal year. Choose one and keep it. We prepare the slips from the subcontractor records kept through the year. [Ask about your case →](https://www.everstonecpa.com/quick-question) **How is the 10% holdback recorded?** As a receivable when the work is invoiced, tracked separately from ordinary receivables until it is released. Holdbacks you retain from your own subcontractors are tracked as payables the same way, and both are reviewed at year-end. **Do I need WSIB coverage?** Most construction businesses in Ontario do, including many owners who would be exempt in other industries. Check your own status and hold a current clearance certificate for every subcontractor before paying them. **When is HST due on a holdback?** Generally when the holdback is released or becomes due, rather than when the progress bill is issued. Recording holdbacks separately lets the HST return follow that timing. **Should my crew be employees or subcontractors?** It depends on the working relationship, not the paperwork. A worker under your control, using your tools, working only for you, is usually an employee. Reclassification after a CRA review brings CPP and EI arrears with penalties. **Do you work with trades across Niagara?** Yes, incorporated contractors and trades in St. Catharines, Niagara Falls, Welland, Lincoln, Niagara-on-the-Lake and across the Niagara Region. Everything runs online, around a site schedule. **What does an accountant cost for a St. Catharines construction business?** St. Catharines businesses pay the same published fees as everyone else. Monthly bookkeeping starts from $325 a month and a personal return from $125; a corporate return is quoted after we review your enquiry. A single question can go to a 45-minute Advice Call, a flat fee of $225 + GST. Every fee is fixed in writing first. [See the published fees](https://www.everstonecpa.com/pricing). ## Related services and local guides Nearby cities, the rest of what we do for St. Catharines businesses, and the reference pages behind this one. [Contractor accountant in Hamilton](https://www.everstonecpa.com/contractor-accountant-hamilton) [Manufacturer accountant in St. Catharines](https://www.everstonecpa.com/manufacturer-accountant-st-catharines) [Accounting for contractors](https://www.everstonecpa.com/contractor-accounting-hub) [Accounting & CPA services in St. Catharines](https://www.everstonecpa.com/accountant-st-catharines) [Bookkeeping in St. Catharines](https://www.everstonecpa.com/bookkeeping-st-catharines) [Corporate tax (T2) in St. Catharines](https://www.everstonecpa.com/corporate-tax-accountant-st-catharines) [Payroll in St. Catharines](https://www.everstonecpa.com/payroll-services-st-catharines) [Fixed pricing](https://www.everstonecpa.com/pricing) [Accountants across Ontario](https://www.everstonecpa.com/accountant-ontario) [Ontario tax facts Current rates and thresholds for Ontario](https://www.everstonecpa.com/ontario-tax-facts) [Contractor accounting in London](https://www.everstonecpa.com/contractor-accountant-london-ontario) ### What clients say Rated 5.0 on Google across 21 client reviews. [Read all reviews](https://www.everstonecpa.com/reviews) ★★★★★ “Personal. Professional. Responsive. Plus he saved me a bundle!” Corrin Skalbeck Verified Google Local Guide ★★★★★ “…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 Verified Google review ### Starting fees Every fee is fixed in writing before any work begins. - **Monthly bookkeeping, GST/PST filing included** from $325 a month - **Payroll, remittances, T4s and ROEs** included in monthly bookkeeping - **Books, payroll and the year-end T2 together** $500–$700 a month - **Corporate year-end and T2 return** fixed fee, quoted in writing - **Personal tax return (T1)** from $125; self-employed or rental $275–$500 - **Catch-up bookkeeping** from $2,200 per year of records - **Controller or CFO support** controller from $1,650, CFO from $2,750 a month - **One-off advice call with a CPA** $225 plus GST [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) --- Source: https://www.everstonecpa.com/contractor-accountant-st-catharines Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online