Are you required to file T5018 Statement of Contract Payments with CRA?
Last Updated: March 11, 2025
T5018 Requirements
In the construction industry, any payments made to subcontractors must be reported on a T5018 Statement of Contract Payments. This applies to any business in which more than 50% of its business income comes from construction activities.
- the reporting period
- the name of the subcontractor
- his or her CRA identification number, which could be a business number or social insurance number
- the total paid to each subcontractor
- if possible, the subcontractor’s address
T5018 Late Filing Penalty
Failure to file T5018s will result in penalties. The CRA issues late filing penalties based on the number of slips filed late and the number of days late. The late filing penalty will also continue to accrue interest until paid in full.
In an industry that often deals in cash payments, the CRA has enacted this requirement to ensure that all earnings are reported and taxes are paid on subcontractors’ total earnings. The CRA uses T5018s and the resulting penalties for late filing or failure to report as motivation for employers and subcontractors in the construction industry to conduct business legally and to avoid operating underground.
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