T4 vs T4A in Canada: What Business Owners Need to Know

A T4 reports employment income and the related payroll amounts. A T4A reports certain other payments, including some pensions, scholarships, and fees for services. The right slip follows the payment and the actual working relationship. Calling someone a contractor does not choose the slip for you.

For a business owner, the useful work starts well before the filing deadline. List who you paid, why you paid them, and whether employment or another reporting rule applies. A payroll reconciliation and a separate review of service-provider payments prevent most last-minute corrections.

Information slips follow the calendar year. That year is often different from the corporation's fiscal year, so a year-end corporate checklist does not replace this review.

T4 and T4A at a glance

These are broad descriptions. Other slips and rules cover non-residents and specific industries. Confirm the form for each payment rather than choosing from a job title.

When does an employer issue a T4?

A T4 reports an employee's remuneration, income tax withheld, Canada Pension Plan contributions, Employment Insurance premiums, and other payroll information the CRA requires. Employers also report taxable benefits and reconcile the annual totals to the amounts remitted.

A Vancouver retailer that employs a part-time administrator, pays wages, and withholds payroll deductions prepares a T4 for that employee. Part-time status does not turn an employee into a contractor.

Before the slips are prepared, confirm names and identifiers through a secure process, review year-to-date earnings and benefits, and clear differences between the payroll reports and the general ledger. Avoiding common payroll errors covers related controls.

When might a business need a T4A?

A T4A covers several kinds of income beyond ordinary employment. One business category is fees for services in box 048. Other categories include certain pension, scholarship, and other payments, each with its own rules.

The CRA's reporting-fees guidance describes the requirement to report fees paid for services, including payments exceeding $500 in a calendar year. The T4A payer instructions explain box 048 and the situations that use it. GST/HST and PST stay out of the box 048 amount. Report the fee, then keep the sales tax in the sales-tax accounts.

Consider a design studio that pays an independent Canadian service provider $2,000 in fees plus GST during the calendar year. If the payment meets the reporting rules and no exception changes the result, those fees are reviewed for a T4A. The reporting amount is $2,000, not the invoice total that includes GST. Confirm the recipient, the payment type, and any exception with your accountant before filing.

Some contractors never require a T4A, because the payments, the recipient, or an exception take the payment outside the rule. Other contractors do require one. A missing penalty, discussed below, does not answer that question.

Reporting obligations and the box 048 penalty policy

The duty to report and the CRA's penalty policy are different.

The CRA's administrative moratorium on penalties for failing to complete box 048 began in 2011 and remains in place for industries generally. In December 2025, the CRA ended that moratorium for the trucking industry, starting with the 2025 tax year and later years. Under that exception, penalties can apply when a trucking business fails to report fees for services exceeding $500 in a calendar year paid to a Canadian-controlled private corporation that is also in the trucking industry. The CRA describes a business as operating in the trucking industry when more than 50% of its primary source of income is from trucking activities. For those slips, the gross fee excluding GST/HST and PST goes in box 048, and the recipient's program account number goes in box 013.

Outside that trucking exception, the absence of a penalty does not cancel the reporting obligation. Check the current policy against the actual payments. Non-resident payees and specialized industries can require a different slip and withholding. Those files need advice before a T4A is assumed.

Does the slip determine whether a worker is an employee?

No. The working relationship determines classification. Relevant facts can include control, tools, financial risk, opportunity for profit, and how the relationship operates day to day. An invoice or a contractor agreement is evidence. It is not the conclusion. The CRA describes its approach in Employee or Self-employed. For a BC workplace, compare that approach with employee or independent contractor in BC.

An incorporated service provider can raise a separate personal services business question. A T4A decision does not answer that question, and a CPP/EI ruling on the actual relationship does not answer the hypothetical test used for a personal services business.

When are slips due?

T4 and T4A information returns are generally due on the last day of February following the calendar year being reported. Applicable slips also have to be provided to recipients by the relevant deadline. The CRA's filing deadline guide covers a business that ceases operations and other special cases.

Weekends and holidays can move the date on which the CRA treats a return as on time. For the 2025 calendar year, the statutory date was Saturday, 28 February 2026, and the CRA said the return was on time if it was received or postmarked on or before Monday, 2 March 2026. For 2026 slips, 28 February 2027 falls on a Sunday. Under the same weekend rule, a return received or postmarked on or before Monday, 1 March 2027, would be on time unless the CRA recognizes a holiday that moves the date again. Confirm the published date before you rely on it.

Start early enough to collect missing information and correct payroll or accounts-payable records. Restrict access to identifying information and use a delivery method that fits the rules.

A year-end checklist

This review sits beside the broader year-end accounting checklist. Build two lists: employees from the payroll register, and service payments from accounts payable for the calendar year. The second list is where box 048 questions usually appear.

Frequently asked questions

Sources

• T4A slip, Canada Revenue Agency.
• Reporting fees for services, Canada Revenue Agency.
• When to file information returns, Canada Revenue Agency.
• CRA announcement, December 2025, ending the box 048 penalty moratorium for the trucking industry for the 2025 tax year and later years.
• CRA tax tip on the 2025 slip deadline and the 2 March 2026 weekend adjustment.

Reviewed against CRA guidance on 2 November 2026. CRA guidance and administrative policies can change. Confirm the current requirements and obtain professional advice before filing.