P&P Accounting One stop for all your accounting needs.

Construction business paying subcontractors Posted on Nov 18, 2019

Are you aware that you have to report those payments to the CRA?
T5018 slips must be filed within 6 month of your year end or a calendar year end.
Must report if construction is your primary source of income. >50%
Failure to comply: If you fail to file a T5018 information return, the penalty for each failure is $25 a day, with a minimum penalty of $100 up to a maximum of $2,500.

Construction activities are conveniently listed on CRA website in an alphabetical order :  https://www.canada.ca/en/revenue-agency/services/tax/businesses/contract-payment-reporting-system-cprs/information-payers-t5018.html

Some examples are: Air conditioning work, Asphalt paving, Drywalling, Fencing, Carpentry, Electrical work, Plumbing, Tile work, Roofing and Shingling, Plastering and Stucco...