By Franco Moyano, QBO ProAdvisor · Barrie, Ontario · June 8, 2026 · 6 min read
If you're an Ontario contractor who hires subcontractors, the T5018 slip is one of the most important CRA obligations you can't afford to miss. The T5018 — formally called the Statement of Contract Payments — is a reporting slip that general contractors and other construction businesses must file with the Canada Revenue Agency to report payments made to subcontractors for construction services. Many trades business owners in Barrie and across Ontario either don't know this obligation exists or assume it only applies to large companies. It applies to you if you pay a sub $500 or more in a calendar year.
The T5018 is CRA's information slip for construction industry payments. Think of it like a T4 for employees — but for subcontractors you pay for construction services. You file a T5018 slip for each subcontractor you paid $500 or more during the year, and you file a T5018 Summary to total up all slips. CRA uses this information to cross-reference the income subcontractors report on their own tax returns. If a sub reports $80,000 in income but the T5018s you and other payers filed add up to $120,000, CRA will come looking.
The filing obligation applies to any business whose primary activity is construction — and CRA defines "primary" as more than 50% of annual business activity. This includes general contractors, electrical contractors, plumbing and HVAC companies, roofers, drywall installers, concrete contractors, and any other trades business that regularly takes on construction projects. If you're a GC who subs out framing, electrical, mechanical, or finishing work, you need to be filing T5018s for every sub you paid $500 or more in a year.
One important nuance: even if your business is primarily something other than construction — say you're primarily a property manager — if you make payments for construction services, those specific payments may still require a T5018. When in doubt, file.
CRA's definition of construction services is broad. It includes:
What's NOT typically included: purely professional services like architectural drawings, engineering reports (separate from construction activity), or equipment rentals with no labour component. If you're ever unsure whether a payment counts, treat it as reportable — the cost of filing an unnecessary slip is zero, while missing a required slip can cost you.
T5018 slips and the summary are due by the last day of February of the year following the calendar year in which payments were made. So payments made throughout 2025 must be reported by February 28, 2026. You can also elect to file based on your fiscal year instead of the calendar year — if your fiscal year-end is not December 31, your T5018s are due six months after your fiscal year-end. Most Ontario contractors use the calendar year, so the February 28 deadline is the one to mark.
CRA does not take a lenient approach to missed information returns. Penalties are calculated based on how late the filing is and how many slips were due:
Beyond the direct penalties, missing T5018s can trigger a broader review of your books. For Barrie trades businesses that operate on tight margins, that kind of scrutiny is expensive and disruptive even when you've done nothing else wrong.
Each T5018 slip requires the following information:
You give one copy of the T5018 to the subcontractor and file a copy with CRA along with the T5018 Summary. Filing is done through CRA's online portal or by mail. If you have more than 50 slips, electronic filing is mandatory.
Note that you report the total gross payment — CRA does not want you to net out HST. Report what you actually paid, HST included. The sub will claim their HST separately through their own HST filings.
Confusing T5018 with T4: Some business owners issue T4s (payroll slips) when they should be issuing T5018s, or vice versa. The T4 is for employees. If someone is genuinely a subcontractor, they get a T5018 — not a T4. Getting this wrong compounds into a payroll audit issue.
Not tracking cash payments: Cash payments to subs are still reportable. If you paid a drywaller $3,000 cash over the summer, that goes on a T5018. The fact that there's no cheque or e-transfer trail doesn't change your obligation — it just makes it harder to track, which is why keeping detailed records matters year-round.
Forgetting foreign subcontractors: If you brought in a sub from the U.S. or another country to work on a Canadian construction project, you still need to file a T5018. Get their information before they leave the job site.
Missing the SIN or BN: You must collect each subcontractor's SIN or Business Number before paying them. If a sub refuses to provide this information, CRA allows you to withhold 15% of the payment as a backup withholding. Most Ontario contractors don't know this rule exists.
The best way to handle T5018s is to treat subcontractor tracking as an ongoing bookkeeping task — not a February panic. A trades bookkeeper who understands construction industry requirements can set up a vendor tracking system in QuickBooks Online or Xero that flags each subcontractor, records their BN or SIN on file, and tracks cumulative payments throughout the year. By the time February rolls around, producing the slips is straightforward rather than a scramble through old bank statements and text messages.
At Moyano & Co., we work specifically with trades businesses in Barrie, Ontario and across Simcoe County, and T5018 tracking is a standard part of how we manage our clients' year-round bookkeeping. We collect sub information at onboarding, flag any sub who crosses the $500 threshold, and have the slips ready well before the February deadline.
Moyano & Co. specializes in bookkeeping for trades businesses and contractors in Barrie, Ontario and surrounding Simcoe County. If you have questions about T5018 filings and subcontractor tracking or want help getting your books in order, book a free consultation.
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