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.
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