Understanding T5018s better: Statement of contractual payments

What does the T5018 consist of?

The T5018 slip, Statement of Contract Payments, is an information slip used to report the total amount of contract payments a contractor has made.

In the case of amounts paid by a federal department, agency or Crown corporation for services or payments for goods, expenses or reimbursements during a calendar year, a T1204 slip, Government Service Contract Payments, must be completed.

For whom?

If more than 50% of a company's income is derived from construction activities, its main activity is presumed to be construction.

Alternatively, you can consult Statistics Canada and use the NAICS codes to determine which activities fall within the construction sector.

In many cases, there are companies that carry out a significant amount of construction work, but this does not represent their core business. For example, a natural gas company may carry out a large amount of construction work to install pipelines. However, its core business is transporting gas, not building pipelines.

T5018 or T4A?

You must complete a T4A slip if you receive any of the following types of income unrelated to construction:

• Lump sum payments

• Commissions from self-employment

• Fees or other sums for services rendered

How much to include?

Payments to subcontractors for construction services must be included, including the Goods and Services Tax (GST) and Quebec Sales Tax (QST).

Payments made solely for goods do not have to be declared. Payments made for both services and products must be declared if the total annual amount of the service component is $500 or more, including GST/HST and QST.

For what period?

You can report payments on a calendar year basis or on a fiscal year-end basis. Once you have established a reporting period, you must always file subsequent returns based on that period, unless you have received written authorization from the Canada Revenue Agency (CRA).

Production deadline‍

The T5018 information return must be filed within six (6) months of the end of the chosen reporting period. If the business ceases operations, an information return must be filed within 30 days of the date the business ceases operations.

Omission to produce

If you fail to file an information return, the CRA will assess you a penalty of $25 per day for each infraction. The minimum penalty is $100, to a maximum of $2,500. The CRA may also impose a late-filing penalty.

Where to produce?

For more than 50 information returns (slips) in a calendar year, the information return must be filed online.

If paper declaration :

Centre fiscal de Jonquière
T5018 Statement of contractual payments
CP 1 300 PDF Jonquière
Jonquière QC  G7S 0L5

Distribution of T5018 slips

Although it is not mandatory, the CRA encourages subcontractors to provide this information by providing them with a copy of the

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Source : Canada Revenue Agency