Completing the T5018 slip
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Completing the T5018 slip
To report payments to subcontractors for construction services, including any GST/HST and provincial/territorial sales tax, you must:
- complete the T5018 slip, Statement of Contract Payments, or
- provide a listing or printout of all payments you make to subcontractors, on a line by line basis in column format with all the information required on the slip. The listing or printout must have all the summary information, including the total payments to each of the subcontractors, the total number of subcontractors who received these payments, and the signature of an authorized person.
This also applies if you are a Canadian resident and are paying a Canadian resident for construction services performed outside of Canada.
Goods-only payments do not have to be reported. Mixed service and goods payments are reported if there is a total annual service component of $500 or more. Complete one slip for the reporting period for each subcontractor.
You can report payments on a calendar-year basis or based on your fiscal year end. Once you choose a reporting period, subsequent returns must be filed for the same reporting year unless otherwise authorized in writing by the CRA.
Note
Payments for employee salaries are not to be reported, as these amounts are already included on the T4 slip. However, if the worker also performs construction services as a subcontractor, those subcontract amounts should be reported on a T5018 slip.
If you want to complete your T5018 slips using a personal computer, you can use the PDF fillable T5018, Statement of Contract Payments.
If you have multiple offices, can you file information slips from each of them?
We recognize that for practical purposes, businesses may need to file information slips from more than one location. This type of filing is acceptable only if the business number (BN) has a different account identifier for each location. For example, a contractor with offices in Québec City and Edmonton has a single BN, 123456789, but may use his payroll account number RP0001 to identify Québec and another, RP0002, to identify Edmonton. With different account identifiers, the contractor can file information slips from both offices.
What happens when a contractor makes a cheque out in the name of more than one subcontractor?
This is sometimes done to ensure that a subcontractor's sub-trades are paid in order to minimize the possibility of liens against the job. Contractors report only on those subcontractors they deal with directly. In a case such as this, the contractor would report the amount as a payment to the subcontractor. The subcontractor would be responsible for reporting the amount as payment to the subtrade.
Example
ABC General Contractor Inc. has a contract with XYZ Drywallers Ltd. to install drywall. XYZ has part of the work done by MNOP Plasters Inc. XYZ owes MNOP $1,000 for the work. ABC writes a cheque out to XYZ Drywallers Ltd. and MNOP Plasters Inc. in the amount of $1,000.
- ABC reports the $1,000 payment to XYZ Drywallers Ltd., since it contracted with XYZ.
- XYZ reports the $1,000 payment to MNOP Plasters Inc., since it contracted with MNOP.
What will stop contractors from conspiring with subcontractors to avoid reporting on contract payments?
Any contractor that plans with subcontractors to avoid tax by concealing underground activity could face criminal prosecution, with fines and penalties of up to 200% of the tax they tried to avoid.
Will the CRA reimburse you for the costs of preparing the information?
No. Costs cannot be reimbursed, however, the costs are tax deductible.
Detailed instructions
Box 20 – For the period ending
The last day of the payer's reporting period for this return.
Box 22 – Construction subcontractor payments
Enter the total amount of payments you made to the subcontractor during the period, including goods and services tax/harmonized sales tax (GST/HST) and provincial/territorial sales tax, where applicable. If the total amount of payments to a subcontractor is less than $500, you do not have to complete a T5018 slip for that subcontractor.
If a subcontractor was paid through the bartering of goods or services, the fair market value of the bartered goods or services would form part or the entire amount that has to be reported.
Box 24 – Recipient's identification number (Account number or SIN)
Enter the recipient's 15-character account number (which consists of the nine-digit business number, a two-letter program identifier, and a four-digit reference number) or the social insurance number. You can go to GST/HST Registry to verify if the subcontractor is registered for GST/HST, or call 1-800-959-5525 if you are unable to use the registry.
Recipient's business name and address
Enter the name and address of the business or person to whom you made the payment.
Payer's name
Enter your business or individual name.
Payer's account number
Enter your 15-character account number (which consists of the nine-digit business number, RZ, and a four-digit reference number) on your copy and the copy you send to the CRA only. Do not enter your account number on the copies you give to the contractors.
Distributing T5018 slips
While it is not mandatory, we encourage you to share this information with the subcontractors by giving them a copy of the slip. Your account number is not needed on the subcontractor's copy.
Keep a copy of the slips for your records.
Verification of amounts
The accuracy of what you report will be reviewed in the usual course of audits. The feedback from this activity will help you to meet reporting requirements.
Forms and publications
Related topics
- Date modified:
- 2016-12-15