T4As for Non-profits
We get a lot of questions about T4A slips, which are basically T4 slips but for contractors instead of employees. Employers ask us, Do I need to send out T4As, and how do I prepare them? Contractors ask how to report them and whether they’re really necessary. We’ll dive into a few of those questions here.
Who needs to send T4As?
There are some exceptions, but generally speaking, it is required to issue a T4A if you paid a contractor more than $500 or deducted any kind of tax from what you paid. For more specific situations, refer to this guide.
What if I paid them exactly $500?
We’d recommend you stay on the safe side and still issue a T4A.
Who is a contractor?
An individual who received income that would not be considered employment income, whether they have a business number or not. For organizations that provide grants, this could include artists or other types of grant recipients.
Are T4As mandatory to send out?
Yes. CRA requires issuing a T4A if you paid a contractor more than $500.
What happens if I don’t send T4As to my contractors?
The CRA won’t penalize companies for not filing them. Despite this, we always recommend being on the safe side in terms of compliance with CRA.
Do I need to get the SIN number from my contractors?
Yes, technically, you need to obtain contractors’ SIN numbers in order to fill out the form.
What happens if the contractor doesn’t want to provide their SIN number?
Even though it is a requirement for contractors to provide their SIN for the T4A, the CRA knows you can’t force someone to give you their SIN number. If a contractor declines to provide theirs, you can just fill in nine zeroes where their SIN number would go. However, you do need to make a reasonable effort to obtain the contractor’s SIN number.
What other information do I need?
The contractor’s name, address, and how much you paid them during the year.
What goes where?
The fees paid go in Box 048. Any tax deducted goes in Box 022. For any other amounts, refer to this guide here.
When are they due?
February 28th for the preceding calendar year.
How do I file them?
The easiest way is online via CRA’s My Business Account, using Web Forms. The form will lead you through a series of questions and provide you with slips to send to your employees at the end.
Otherwise, you can use accounting software like Quickbooks to create the forms. Don’t forget to upload a summary to the CRA before the end of February.
If I’m a contractor, how do I report the income?
In general, contractors enter amounts from Box 048 on Form 2125 (Statement of Business or Professional Activities) of their personal tax return. Related eligible expenses from your business or profession can be deducted on the same form.
My organization hires many people on a contract basis, what can I do to prevent confusion at the end of the year?
First, we recommend collecting personal information right when hiring a new contractor/individual, which will save you from searching for the info at the end of the year. One way to do this is to have the person complete and sign a form that includes their name, Social Insurance Number (SIN) or business number, and address, and to keep records of it. Second, make sure to keep track of all payments made to each contractor throughout the year. Your accounting system can help you do this very easily.
Last updated: April 29, 2025
Disclaimer: The information provided above is general in nature and is not intended to be solely relied upon for specific organizations or individuals. In addition, lax laws change frequently and the above information may be out of date. Professionals should be consulted in matters that involve specific facts and circumstances. Arrowmaker Advisory & Accounting LLP disclaims any responsibility or liability for any reliance that any person may place on this advice.