T4, T4A, T5 and T5018 Slips for Small Businesses

Most slips you issue go to the CRA and to the person you paid. Most are due by the last day of February, and if you file more than five of one type for the year, paper isn't an option.

T4 for employees

If you paid employees employment income, commissions, taxable allowances and benefits or other remuneration, you issue a T4 when you deducted CPP, EI or income tax from their pay, or when their total pay for the year was more than $500. The T4 slips and summary go to the CRA by the last day of February after the calendar year, and employees must have their copies by the same date. Our post on payroll remittances covers the deductions behind the numbers.

T4A, including fees for services

The T4A reports pensions, retirement income, annuities and other income, and it's also the slip for fees for services. Generally, if you pay someone a fee for a service outside an employment relationship, you fill out a T4A. That includes payments between businesses, sole proprietors and corporations alike. A slip is needed when all of these apply: the person isn't your employee, they provided a service for a fee, the fee was actually paid, and you paid them at least $500 in the year or deducted tax.

The CRA says it isn't currently charging penalties over the fees-for-services box (box 048), except under its policy for the trucking industry. That relief is about penalties. The slip itself is still required when the conditions above are met. From the 2025 calendar year on, trucking businesses can be penalized for not reporting fees over $500 a year paid to Canadian-controlled private corporations in trucking. In some situations a T4A-NR, T5018 or T1204 is the right slip instead. T4As are due to the CRA and to recipients by the last day of February.

T5 for dividends and interest

A T5 reports certain payments to a resident of Canada, including eligible dividends, other-than-eligible dividends and several kinds of interest. If your corporation pays a dividend to you or another shareholder, that's on the list. You don't need a slip when the total paid to one recipient for the year is less than $50, or for capital dividends. The T5 return is due by the last day of February. If you're weighing dividends against a wage, see our post on salary vs. dividends.

T5018 for construction

If more than 50% of your business income comes from construction, you report payments to Canadian-resident subcontractors for construction services on a T5018 when the total to a subcontractor for the year was more than $500, not counting GST/HST. You pick the reporting period (calendar year or fiscal period), and the return is due 6 months after it ends. You don't have to give subcontractors a copy, though you can. If someone did employee work for you as well as subcontract work, the employment income goes on a T4 and the subcontract work on the T5018. Our page on accounting for tradespeople has more for the trades.

Deadlines and filing method

When the last day of February lands on a weekend or a CRA-recognized holiday, you have until the next business day. That matters for 2026 slips. February 28, 2027 falls on a Sunday, so under that rule a return received or postmarked by Monday, March 1, 2027 is on time.

If you file more than 5 slips of the same type for a calendar year, you have to file electronically, either through the CRA's Web Forms (up to 100 slips) or by Internet file transfer from payroll or accounting software. For recipients' copies, paper T4s and T4As go out as 2 copies, in person or by mail. You can email T4, T4A and T5 slips if the recipient has consented in writing or electronically, or post them on a secure portal, with some exceptions, such as a former employee or someone who asked for paper.

Late slips and penalties

Penalties for late T4, T4A, T5 and T5018 returns depend on how many slips were late. Under a CRA administrative policy meant to keep penalties fair for small businesses, the penalty for 1 to 5 late slips is a flat $100. From 6 to 10 slips it's $5 a day up to $500, and 11 to 50 slips is $10 a day up to $1,000, with higher tiers above that. Getting copies to employees or recipients late can cost $25 a day per slip, with a minimum of $100 and a maximum of $2,500. A separate penalty can apply if you had to file electronically and filed on paper.

How we help

T-slip filing is one of the other filings we handle, along with payroll filing and remittance. If your slips come at the end of a year of payroll, our bookkeeping service covers payroll, matching your books to your bank, and year-end prep.