Reporting system for contractors

If you’re in the construction business and make payments to subcontractors, you have to report certain payments to the CRA. For this purpose, construction is defined as erecting, installing, excavating, altering, modifying, repairing, improving, demolishing, dismantling or removing any structure or part thereof.

What payments must be reported?

You must report payments to subcontractors for construction services if the amount paid for services is $500 or more. Payments for goods are not to be included in determining if a payment satisfies this test. The payments can be reported on a calendar-year or a fiscal-year basis.

What information must be reported?

You must report the name of the subcontractor, the business address, the amount paid for the reporting period and the subcontractor’s business number (BN) or social insurance number (SIN) if no BN is available.

The information can be reported either on a “Statement of Contract Payments” (Form T5018) or on a line-by-line basis in a column format with the appropriate summary information.

In general, the due date for filing the required information is six months from the end of the reporting period.

Although there is no requirement to provide any information slips to the subcontractors, it’s reasonable to assume they will want to know what information is being reported to the CRA.