Paid contractors: when should a Canadian small business prepare T4A slips?

Review the payment type before choosing a slip

CRA's fees-for-services fact sheet describes reporting fees paid to other businesses exceeding CA$500 in a calendar year, usually through T4A reporting. Review the payer guidance and applicable exceptions with the preparer. Construction payments and payments involving non-residents can require a different reporting review.

The label “contractor” in a bookkeeping system does not settle every reporting question or determine whether a worker is an employee. Resolve classification and form questions before the final filing week.

Use the reporting calendar year

The ordinary T4A information-return deadline is the last day of February after the reporting year, adjusted for a weekend or CRA-recognized holiday. Do not replace it with the corporation's T2 filing date.

• Reconcile relevant service payments by recipient and calendar year.
• Identify the applicable reporting form with the preparer.
• Gather recipient information through an appropriate secure channel.
• Confirm who files the return and provides recipient copies.
• Retain the submission acknowledgement and distribution record.

Make reporting part of the supplier handoff

Keep unresolved supplier information on a working list early enough to address it. A payment reference confirms a transaction; it does not establish that an information slip was prepared or filed.

Track the reporting task separately

Enable T4A in Compliance Calendar when the obligation applies. Use its checklist and notes for preparation and retain the filing confirmation. The calendar does not classify workers, select the legally correct slip or transmit it. Ask the preparer to confirm eligibility before treating the generated task as the complete reporting plan.