If you paid an independent contractor, consultant, or freelancer more than $500 in 2025, the CRA expects a T4A slip on their desk by February 28, 2026. Miss the deadline and penalties start at $100 per slip—and can climb to $7,500 for large volumes. Below is a plain-English guide to T4A reporting, Box 048, and the looming end of the CRA’s administrative moratorium.
1. What exactly is a T4A slip?
The T4A, Statement of Pension, Retirement, Annuity and Other Income, is the CRA’s way of tracking non-employment income. Think of it as the contractor’s version of a T4.
- Typical payments: professional fees, commissions, research grants, pensions, annuities.
- Not for employees. If you withhold CPP/EI, issue a T4 instead.
2. Who gets a T4A and when?
| Recipient type | Threshold | Example |
|---|---|---|
| Individual or sole-prop contractor | $500+ in calendar year | Web designer invoiced $6,000 |
| Corporation (management fees only) | Any amount | IT consulting corp paid $2,000 |
| Research grant recipient | Any amount | University awards $1,500 grant |
3. Box 048 “Fees for Services” – the quiet penalty trap
Since 2011, the CRA has not assessed penalties for missing Box 048 entries. That moratorium is expected to end in 2025. Once lifted, incomplete slips can trigger automatic penalties of $100–$7,500 depending on volume and delay.
Action: Even though penalties are paused, fill Box 048 anyway. It’s the best defence against future reassessments.
4. 2025 deadline & late-filing penalties
- Filing deadline: February 28, 2026 (moves to Monday if weekend).
- Copies to recipients: Same day.
- Electronic filing threshold: 50+ slips must be filed electronically.
Penalty schedule (per slip type):
| # of slips filed late | Penalty per day (max 100 days) | Max penalty |
|---|---|---|
| 1–50 | $10 | $1,000 |
| 51–500 | $15 | $1,500 |
| 501–2,500 | $25 | $2,500 |
| 2,501–10,000 | $50 | $5,000 |
| 10,001+ | $75 | $7,500 |
5. How to file: paper vs. electronic
Paper filing
- Order forms from CRA or print PDFs.
- Mail to Winnipeg Tax Centre with T4A Summary.
- Not recommended for 50+ slips.
Electronic filing
- Use CRA’s Web Forms (up to 100 slips) or Internet file transfer (XML).
- Most payroll software (QuickBooks, Ceridian, ADP) exports CRA-ready XML.
- Keep confirmation number for 7 years.
6. Pre-filing checklist (save this!)
- Collect every contractor’s legal name, SIN/BN, and address.
- Reconcile total payments in your accounting system.
- Confirm GST/HST is included in Box 048 if it was part of the invoice.
- Generate slips and review for typos.
- Send copies to contractors and file with CRA by Feb 28.
7. FAQ
- Do I issue a T4A to a corporation?
- Only for management fees. Regular service corporations are exempt.
- What if the contractor refuses to give a SIN?
- You must still file the slip; enter nine zeros (000 000 000) and keep notes.
- Can I amend a slip after filing?
- Yes. Mark it “Amended” and re-submit to both CRA and the recipient.
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Need help before February 28?
We can review your contractor payments, prepare T4As, and e-file with CRA. Book a call today.