T4A for Contractors: When to Issue One and How to File It
A T4A slip is the information return for non-employment income. If you paid a freelancer, consultant, or independent contractor for services — and they're not incorporated — there's a good chance you're legally required to issue one. Many business owners skip this step without realizing it, only to face CRA penalties later.
T4 vs T4A: What's the Difference?
A T4 is for employees. It shows employment income, income tax deducted, CPP contributions, and EI premiums. You issue T4s to people on your payroll.
A T4A is for non-employment payments — self-employed individuals, contractors, freelancers, and certain other recipients (pensions, scholarships, etc.). You do not withhold or remit anything when issuing a T4A; you're simply reporting what you paid. The contractor is responsible for their own taxes.
When Are You Required to Issue a T4A?
You must issue a T4A slip to an individual when you paid them more than $500 in a calendar year for services, and that individual is:
- Self-employed (sole proprietor or partnership)
- An individual operating under a business name but not incorporated
- A recipient of certain other payments (pensions, annuities, commissions, scholarships)
✓ Issue a T4A
- Paid a freelance designer $800 for a logo
- Hired an unincorporated IT consultant for $2,000
- Paid a self-employed bookkeeper $600
- Paid a sole-proprietor contractor $1,500 for renovations
✗ No T4A Required
- Paid an incorporated company for services
- Paid any individual less than $500 total in the year
- Paid a GST/HST-registered business (may still need one)
- Bought goods (not services) from a supplier
Important nuance: If you paid an incorporated contractor, you do not issue a T4A — you simply record it as a business expense. The corporation handles its own tax reporting. When in doubt, ask your contractor: "Are you incorporated?" If yes, no T4A needed.
Which Box Do You Use on the T4A?
The T4A slip has many boxes for different payment types. For contractor services, the most common are:
- Box 48 — Fees for services: This is the most common box for independent contractors and consultants paid for their services. Use Box 48 for most freelance or consulting work.
- Box 20 — Self-employed commissions: Use this if you paid sales commissions to a self-employed agent or salesperson.
- Box 28 — Other income: A catch-all for payments that don't fit other categories.
The amount you report should be the total gross amount paid, excluding GST/HST. If you paid a contractor $1,000 + $50 GST = $1,050, you report $1,000 in Box 48.
When Is the T4A Due?
T4A slips must be filed with the CRA and distributed to recipients by the last day of February following the calendar year of payment. For payments made in 2025, T4A slips are due February 28, 2026.
You must:
- Provide a copy to the contractor (by mail, email, or hand delivery)
- File a T4A Summary with the CRA summarizing all slips issued
- Retain a copy for your own records
How to File T4A Slips with the CRA
Online Filing (Required for 6 or More Slips)
If you're issuing 6 or more T4A slips, you must file electronically through the CRA's My Business Account portal using the Web Forms application or XML filing. Electronic filing is available year-round and confirmation is immediate.
Paper Filing (Under 6 Slips Only)
If you're issuing fewer than 6 slips, you can file on paper by mailing the T4A Summary and copies of all slips to your nearest CRA tax centre. Paper filing is slower — allow at least 6–8 weeks for CRA processing.
What Information Do You Need from the Contractor?
Before issuing a T4A, collect the following from your contractor:
- Their full legal name
- Their SIN (Social Insurance Number) or BN (Business Number)
- Their address
Get this information before you issue the first payment — some contractors are reluctant to provide their SIN after the fact. You have a legal obligation to make a reasonable effort to obtain it. If a contractor refuses to provide their SIN, document your request in writing and report the slip anyway with the information you have.
What Are the Penalties for Not Filing?
Failure to file T4A slips on time or at all triggers automatic CRA penalties:
- $25/day late (minimum $100, maximum $7,500 per filing)
- Penalties increase for repeated failures
- If the CRA determines the failure was deliberate, penalties can be substantially higher
We Handle T4A Preparation and Filing
At MaxRefund Business, we prepare T4A slips for all your contractors, file them electronically with the CRA, and make sure your deadlines are never missed.
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