Are you required to file T5018 Statement of Contract Payments with CRA?

Last Updated: March 11, 2025
If you work in the construction industry and hire subcontractors, you may be required to file a T5018 Statement of Contract Payments with the CRA. This reporting requirement helps ensure that subcontractor earnings are properly documented and taxed. Understanding when and how to file can help you stay compliant and avoid costly penalties. Here’s what you need to know about T5018 filing requirements, deadlines, and potential penalties for late submissions.

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.

Payments to subcontractors can be reported on either a calendar-year or fiscal-year basis, and are due six months after the end of the reporting period. Payments of over $500 for the year must have a T5018 slip filed, however, goods-only payments are not reported. If the total payment to a subcontractor is under $500, a T5018 slip does not need to be completed.  
 
One T5018 slip must be filed for each subcontractor, and a summary slip is reported to the CRA as well. All T5018s must include 
  • 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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