Payroll, T4’s, T4A’s, T5018’s

Payroll preparation and calculation of payroll source deduction could be implementing bi-weekly or monthly depending on your business.


  • Running payroll services with tax rules and regulations
  • Processing T4’s & T5’s the end of each year
  • Calculating deduction amounts based on individual employee benefits
  • Calculating workers compensation (WSIB), EHT, and ROE’s.

You have to send payroll deductions during the month or quarter by the 15th day of the following month. The date of receipt is the date the payment is delivered to the Receiver General and not the date you mailed the payment.CRA will apply penalties for late or deficient remittances on amounts over $500 unless the failure is made knowingly.

Should I issue the T4A or T5018 slip for my subcontractors?

If an employer hires someone else to do the work on their behalf , this would be considered subcontracting. This means you may need to issue a T4A or T5018 slip ( for construction industry). For the annual payments to one subcontractor/vendor over $500 ( exclude GST/HST) you must issue T4A or T5018 slip.

All construction businesses are required to report any payment of $500 or more to subcontractors providing construction services. Construction activities for issuing T5018 slip: Installation, building, repair, home renovation or improvements, demolition, modification…

Businesses that spend less than 50% of their time in construction activities are not required to report payments to subcontractors. Note that such businesses may have to file T4A slips for payments for services in excess of $500. The T4A slip may include different types of payments such as self-employed commissions, any services for not subcontracting industries, lump-sum payments, annuities.

What is penalty for failure to file an information return by the due date?

If you fail to file an information return by the due date, CRA may assess a late-filing penalty. Each slip is an information return and CRA base the penalty on the number of slips filed late. The penalty from $10/per day and max $7,500.

What I need to know before applying for Maternity Leave?

  • You have accumulated at least 600 hours of insurable employment during the qualifying period, in the last 52 weeks.
  • Was hired at least 13 weeks before the date her baby is expected to be born.
  • You have earned enough money during the qualifying period.
  • You need to pay EI premiums on all your earnings up to a maximum amount.
  • You need to apply for EI benefits, since Service Canada first needs to determine whether you are entitled to receive them. Benefits are not paid to you automatically, even if you have received a Record of Employment (ROE) from your employer.