Using T4A and T5018 forms in QuickBooks Online

QuickBooks Online helps you prepare T4A and T5018 forms, which are used to record payments made to subcontractors during the previous fiscal or calendar year. This guide explains the differences between the forms, how to prepare them in QuickBooks, and how to file them with Canada Revenue Agency (CRA).

Understanding T4A and T5018 Forms

It's important to know which form to use for your subcontractors.

T4A Form

• The T4A form records payments made to a subcontractor during the previous calendar year.
• T4A forms must be filed with the CRA on or before the last day of February following the calendar year they apply to.
• You must also provide copies of the T4A forms to your suppliers.
• If you file more than 5 T4A slips, the CRA requires you to file electronically.

T5018 Form

• The T5018 form records payments made to a subcontractor specifically for construction services.It covers payments made during the previous calendar or fiscal year.
• T5018 forms and the T5018 Summary must be filed with the CRA within 6 months after the end of your reporting period (calendar or fiscal year).
• Providing a copy of the T5018 slip to the subcontractor is optional.

Need help deciding? If you're unsure whether a subcontractor needs a T4A or T5018 form, consult your accountant or the CRA.

Set up a new supplier

Follow this link to complete the steps in product

1. Select New supplier.
2. Enter all necessary supplier information. Ensure the first and last name align with the legal or trade name used by the business.
3. Navigate to the Additional info section. Make sure to:
   • Select tracking for T4A or T5018.
   • Select Supplier Type (Individual or Business).
4. Enter the Business ID number or Social Insurance Number.
5. Select Save.

Adjust an existing supplier

Follow this link to complete the steps in product

1. Select an existing supplier.
2. Navigate to the Batch Actions button and select Track for T4A or Track for T5018.
3. Select the supplier's name to open its profile and select Edit.
4. Select Supplier Type (Individual or Business).
5. Enter the Business ID number or Social Insurance Number.
6. Select Save.

Reviewing contractor information and payments using reports

QuickBooks provides reports to help verify amounts and contractor details before filing.

Detail Reports (T4A Detail / T5018 Detail)

These reports show individual payment details for each tracked supplier. There is a separate report for each form type.

Follow this link to complete the steps in product

1. Scroll down and find the Expenses and Suppliers section.
2. Select the T4A Detail or T5018 Detail report.

• T4A Detail defaults to the last calendar year; T5018 Detail defaults to the last fiscal year. You can change dates under Report period.
• Use the Contractor filter to view specific suppliers.
• Use the Accounts filter to select the correct payment accounts to verify slip amounts.

Contractor Info reports (T4A Contractor Info / T5018 Contractor Info)

These reports list all tracked contractors and their information needed for slips. There is a separate report for each form type.

Follow this link to complete the steps in product

1. Scroll down and find the Expenses and Suppliers section.
2. Select the T4A Contractor Info or T5018 Contractor Info report.

• Use the information displayed to create T4A or T5018 slips. You can also use this information for the T4A or T5018 Summary Slips submitted to the CRA.
• If information is missing, contact the contractor directly.
• T4A Contractor Info defaults to the last calendar year; T5018 Contractor Info defaults to the last fiscal year. You can change dates under Report period.
• Use the Contractor filter to view specific suppliers.

Preparing forms in QuickBooks Online

Before you can prepare the forms, ensure your suppliers are set up correctly in QuickBooks to track eligible payments.

Preparing T4A Forms

Use the T4A Form Preparation Wizard in QuickBooks Online:

Company Details

1. Confirm your company details are correct for filing.
2. Ensure your Business Number is in the correct format (commonly 000000000RP0000).
3. Enter the contact details of the person filing the forms.

Accounts Selection

1. Choose the Payment Type used for paying contractors.
2. Select the corresponding expense account(s) from the dropdown. Important: You cannot select the same expense account for multiple payment types.
3. If needed, select Add another payment type to include payment types not initially listed.

Review Payments

1. Review the payment details shown.
2. Select amounts for more details, which opens a detail report in a new tab. Tooltips provide descriptions for payment types associated with box numbers when you hover over headings.
3. Uncheck any contractors you do not want to file forms for at this stage.

Note: Slips cannot be prepared for contractors with a negative balance in any payment type box due to CRA requirements.

Contractor Details

1. Verify contractor details are accurate.
2. If corrections are needed, select Edit to open and update the Supplier profile.

Finish and File

You are now ready to EFILE.

1. Enter your 6-digit transmitter number. Use the default 555555 if you don't know yours.
2. Select Download XML. By default, the XML file saves to your company's attachments.
3. Uncheck the Add the XML file to my company's attachments box before downloading if you don't want this.
4. Visit the CRA portal to EFILE using the downloaded XML file. See this article for recent changes to XML filing.
5. Download the slips for your records and distribute copies to contractors. Optionally, attach the slips to each supplier’s profile.
6. Save all downloaded files, as the wizard starts from the beginning next time.

Preparing T5018 Forms

Use the T5018A Form Preparation Wizard in QuickBooks Online:

Company Details

1. Confirm your company details are correct for filing.
2. Ensure your Business Number is in the correct format (commonly 000000000RP0000).
3. Enter the contact details of the person filing the forms.

Accounts Selection

1. Choose the Payment Type used for paying contractors.
2. Select the corresponding expense account(s) from the dropdown. Important: You cannot select the same expense account for multiple payment types.
3. If needed, select Add another payment type to include payment types not initially listed.

Review Payments

1. Review the payment details shown.
2. Select amounts for more details, which opens a detail report in a new tab. Tooltips provide descriptions for payment types associated with box numbers when you hover over headings.
3. Uncheck any contractors you do not want to file forms for at this stage.

Note: Slips cannot be prepared for contractors with a negative balance in any payment type box due to CRA requirements.

Contractor Details

1. Verify contractor details are accurate.
2. If corrections are needed, select Edit to open and update the Supplier profile.

Finish and File

You are now ready to EFILE.

1. Enter your 6-digit transmitter number. Use the default 555555 if you don't know yours.
2. Select Download XML. By default, the XML file saves to your company's attachments.
3. Uncheck the Add the XML file to my company's attachments box before downloading if you don't want this.
4. Visit the CRA portal to EFILE using the downloaded XML file. See this article for recent changes to XML filing.
5. Download the slips for your records and distribute copies to contractors. Optionally, attach the slips to each supplier’s profile.
6. Save all downloaded files, as the wizard starts from the beginning next time.