2017-03-29 00:00:00TaxesEnglishSave time and trouble at tax time by filling out T4A slips as you pay your contractors, not after, when it can be hard to remember.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/accountant-helps-client-fill-out-t4a.jpghttps://quickbooks.intuit.com/ca/resources/taxes/fill-t4a-right-away/Fill Out Your T4A Right Away

Fill Out Your T4A Right Away

1 min read

If you run a business that sometimes employs contractors, you know all about the Canada Revenue Agency’s filing requirements for reporting contractor income. This information helps the government track the earnings of independent and sometimes casually employed people whose business income might otherwise slip by unnoticed. As the client, it’s up to you to provide a full and accurate accounting of everything that you paid them by filling out a T4A slip. Filling out those slips is time-consuming. It’s even worse when the contractor was a one-off hire that you brought on board for a single job, potentially several months ago. Even remembering who the person was or why you hired him, let alone how much you paid him down to the last dollar, has the potential to become a major source of stress at filing time. Though you may have your own records of contractor payments, or you can at least reconstruct what you paid by going over old bank statements and maybe looking through your cancelled cheques, waiting to the last minute to fill out the CRA paperwork is just asking for trouble. Inaccuracies inevitably creep into the record, the accuracy of which you are responsible for. Even with the best records in the world, filling out the T4A days before the filing deadline just adds work when you’re probably already stressed out. This is even more difficult if you’ve hired multiple contractors during the filing period. Cut through this knot by printing a supply of blank T4A forms and keeping them in the office. Fill out a particular contractor’s paperwork on the day when you pay him, while everything is fresh in your memory and near the top of your desk. Keep these records in a marked file until tax season, and then fire them off to the CRA.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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