2017-04-05 00:00:00TaxesEnglishLearn how to report monies paid to your subcontractors by filling out Canadian T4A slips. Review common form information and quick tips.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/Taxpayers-Submit-T4A-Information-To-CRA.jpghttps://quickbooks.intuit.com/ca/resources/taxes/fill-t4a-slips/How to Fill Out T4A Slips

How to Fill Out T4A Slips

1 min read

Taking on a bunch of client work as a subcontractor can be overwhelming at times, which is why you may need to hire a subcontractor to help you meet work deadlines. For every subcontractor you hire, you need to complete a Statement of Pension, Retirement, Annuity, and Other Income form, otherwise known as a T4A slip. This slip is used for all industries except construction. On the form, you want to cleanly write names and numerical information without using dashes, hyphens, or special characters. Be aware these forms must show monetary amounts in Canadian dollars only, so don’t use the dollar sign or other currency symbols even if you paid recipients in a foreign currency. The first section of the T4A slip has space for general information about the subcontractor and you or your company. Names, addresses, and the calendar year should be printed clearly. Most of the form shows a list of categories with pre-numbered boxes. Begin this part by filling in the correct Social Insurance Number and the recipient account number where indicated. Not every category is going to be relevant to your situation. Say you have nothing to do with pensions, annuities, or lump-sum payments. When a category isn’t relevant, simply leave it blank and skip to the next one. Make sure to leave out monies paid for GST/HST when recording fees for services rendered. The last section is for “other information” not covered in previous sections. Here is where you add code numbers for additional types of payments. Be careful not to repeat previous information. You may need to use a second T4A slip for payment situations that cover more than 12 codes. Filling out T4A slips for subcontractors involves taking the time to record data accurately and clearly. You want to stick to Canadian dollars and cents, and avoid changing the form in any way, except when recording pension adjustments. Be meticulous to ensure your slips travel smoothly through the tax reporting system.

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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