All individuals, partnerships, and corporations whose primary business activity is construction must report payments made to subcontractors (> $500) for services rendered. Goods-only payments do not have to be reported. Mixed service and goods payments, including a service component of $500 or more, must be reported.

You must report the following information to CRA:

  • Subcontractor’s name
  • Address
  • Subcontractor’s ID number – BN or SIN
  • Contract payments made in the reporting period, including GST/HST and PST
  • Reporting period – calendar or fiscal
  • Summary – number of contractors and total amount paid

Information can be reported using a T5018 Information Return or another format (i.e. Excel print-out) as long as the information above is captured.

Information returns must be mailed 6 months from the end of the reporting period to:

Ottawa Technology Centre

875 Heron Road

Ottawa, Ontario

K1A 1A2

You can use Simply Accounting to print off T5018 reports for payments to subcontractors.

To do so, you need to ensure the Vendor set up includes the following:

  • Subcontractor’s name
  • Address
  • Subcontractor’s ID number – BN or SIN
  • Under Options/Forms – tick “Include this Vendor When Printing T5018 Slips”

Go to Payables/Print T5018 Slips. Select the vendors to print and the reporting period (can be fiscal or calendar) and press OK.

Note that only “Payments” to subcontractors are reflected in this report. You will need to add on “Prepayments” to these subcontractors (obtained in the Vendor Aged Detail Report) for the reporting period, if applicable.

Article published 8-Feb-09