The T5018, formally the Statement of Contract Payments, is a CRA information return that construction businesses must file for every subcontractor paid more than $500 in a reporting period. The CRA uses it to cross-reference subcontractor income, and unreported sub income is one of the most common audit triggers in the construction sector. The form itself is simple. The hard part is the tracking: the $500 threshold is per subcontractor per year, across every job, so a sub paid $200 on three separate jobs crosses the line without any single payment looking significant.
Why tracking it by hand goes wrong
- The threshold is per subcontractor per year, not per job. Three $200 payments to the same sub on different jobs total $600 and trigger a slip, even though no single payment looked reportable.
- Box 22 on the slip reports the amount including GST/HST, even though the $500 threshold is measured without it. Reporting the net amount is a common error that gets reassessed.
- The deadline is 6 months after your fiscal year end, not the end of February like T4 slips. Calendar-year filers must file by June 30.
- A missed slip carries a penalty of $25 per day, minimum $100, up to $2,500 per slip. Miss six subs and the exposure compounds quickly.
- Electronic filing is mandatory once you have 6 or more slips. Paper is only accepted for 5 or fewer.
How Markup handles it
Per-subcontractor YTD tracking
Markup totals every payment to each subcontractor across all of your jobs, so the year-to-date figure that matters for the $500 threshold is always current.
$500 threshold alerts
You find out a subcontractor has become reportable during the year, the moment their total crosses $500, not when you sit down to file in June.
Filing-ready figures
Export the per-subcontractor totals you need to complete your T5018 slips, with the amount handled correctly for Box 22.
Deadline reminders
The built-in CRA deadline calendar tracks your T5018 due date from your fiscal year end, alongside your GST/HST remittance dates.
Frequently asked questions
What is a T5018?
The T5018, or Statement of Contract Payments, is a CRA information return that construction businesses file to report payments made to subcontractors. The CRA uses it to cross-reference subcontractor income across tax returns.
Who has to file a T5018?
Any business whose primary activity is construction and that paid a subcontractor more than $500 in a reporting period. The threshold is measured per subcontractor per year across all jobs, excluding GST/HST. Method of payment (cash, cheque, e-transfer) does not matter.
When is the T5018 due?
Six months after your fiscal year end. For calendar-year filers with a December 31 year end, that means June 30. This is different from T4 slips, which are due at the end of February.
What is the penalty for not filing a T5018?
The late-filing penalty is $25 per day per slip, with a minimum of $100 and a maximum of $2,500 per slip. Unreported subcontractor income can also expose you to gross-negligence penalties if a sub is later audited.
Does QuickBooks file T5018 slips?
QuickBooks does not generate T5018 returns natively. Contractors typically track the threshold manually or use Canadian construction-specific software. Markup tracks each subcontractor's year-to-date total, flags the $500 threshold, and produces filing-ready figures.
Is Markup's T5018 software free?
Every new account gets a 14-day free trial with no card required. T5018 subcontractor tracking is part of the Plus plan. See the pricing page for current rates.
This page is general information only and does not constitute tax or legal advice. CRA rules and filing thresholds can change. For advice specific to your situation, consult a licensed professional.