T4A reporting of fees for services

If your business pays a self-employed person or another business for services, the Canada Revenue Agency expects you to report those payments on a T4A slip. This guide covers who must file, what to report, and what to collect from your contractors now so the slips are ready on time.

Who must file a T4A

Every payer who makes a payment for services must report it on T4A slips and a T4A Summary. The CRA defines a fee for service as any payment for labour or services: human effort such as labour, exercising a skill, or giving advice. The amount goes in box 048, Fees for services.

• 01Subcontractors and trades: handymen, painters, drywallers, electricians, plumbers, tile and flooring installers.
• 02Delivery, moving and junk removal.
• 03IT support, web design and other ongoing service contracts, even when paid monthly over a long period.
• 04Professional services such as legal, accounting and consulting fees.

The CRA's own examples include payments to incorporated businesses, so a T4A is not limited to sole proprietors. What matters is that the payment is for a service, not a good, and the person or business is not your employee.

When a T4A isn't required

You don't need to issue a T4A for fees for services if any of these apply:

• 01You're not engaged in a trade or business (for example, a homeowner paying for repairs to their own home).
• 02The payment is a personal expense with no business purpose.
• 03The payment is for utilities: electricity, gas, water and sewage, telephone or internet.
• 04The total paid to that sole proprietor or business is less than $500 in the calendar year.

The $500 test is per recipient for the whole calendar year. Several small payments to the same contractor are added together, so keep a running total for each one.

What to report in box 048

Report the fees for services you paid to each contractor during the calendar year, January 1 to December 31. Invoices received in 2026 but paid in 2027 go on the 2027 slip.

• 01Include labour, installation, consultation and other service charges.
• 02Exclude GST/HST. Box 048 is the fee before GST/HST.
• 03Leave out materials and goods where the invoice clearly separates materials, supplies or reimbursed receipts (with the sales tax charged on them) from labour. Ask your contractors to itemize labour and materials on every invoice so the split is clear.

What to collect from each contractor

Collect these details before year-end, so the slips can be prepared without delay:

• 01Full legal name (individual) or legal business name (corporation), plus any operating or trade name.
• 02Mailing address.
• 03Business Number (BN): the first nine digits of their GST/HST number (123456789 from 123456789 RT0001).
• 04If they have no Business Number: their Social Insurance Number, for sole proprietors only.
• 05An email address, if they agree to receive their T4A electronically.

The GST/HST number on a contractor's invoices also supports the input tax credits you claim on those invoices, so it's worth confirming even for contractors under the $500 threshold. Keep SINs secure and use them only for the T4A.

Deadlines, distribution and filing

T4A slips and the T4A Summary are due on the last day of February following the calendar year. February 28, 2027 falls on a Sunday, so the 2026 slips are due by March 1, 2027.

If you file more than five T4A slips for the year, you must file them electronically (Internet file transfer or web forms). The CRA can charge penalties for late filing, for not giving slips to recipients, and for filing on paper when electronic filing is required.

Why it matters

The T4A puts the same payment information in the hands of the payer, the recipient and the CRA. A self-employed recipient reports box 048 on their business income lines, and a corporation reconciles it with its T2 return. A recipient who leaves T4A income off their return may be selected for review, and the slip can lead to assessments or reassessments.