Reporting Requirements for Subcontractor Payments Over $500
Contract Payment Reporting System (CRPS)
Businesses that are primarily construction-related (50% or more) and pay subcontractors for construction services must report payments that are $500 or more (including GST/HST) to the CRA using the Contract Payment Reporting System. The CRPS applies to individuals, partnerships, trusts, or corporations.
What is A T5018 Information Return?
A T5018 information return is a tax form designed for a contractors in the construction industry. It distinguishes the total contract payments made to a subcontractor in a fiscal period or calendar year.
When to Report
Businesses have the option to report payments on a fiscal or calendar basis and are expected to file their return within six months after the end of the reporting period.
How to Report Payments
Payments can be made to the CRA online or by mail by printing or filling out a T5018 Information Return, which includes the Statement of Contract Payments, and Summary of Contracts Payments.
Are you unsure which payments to report? Save yourself the headache and stress of doing it yourself and onboard Faithe Rouse Professional Accounting Services. With their corporate income tax experts on your team, you can trust that your business is in good hands. They will help you accurately report income and ensure your business stays compliant, so you can focus on running your business.
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Businesses that are primarily construction-related (50% or more) and pay subcontractors for construction services must report payments that are $500 or more (including GST/HST) to the CRA using the Contract Payment Reporting System.
