T4, T4A or T5018: three slips, three different relationships
Compare the payments generally reported on a T4, T4A and T5018. Check the worker and payment type before choosing a slip; this is not personal tax advice.
It is tempting to default to “a T4 covers everyone paid” or to treat a T4A and a T5018 as interchangeable alternates whenever a T4 feels like the wrong fit. None of the three slips substitutes for the others, and choosing the wrong one misstates who actually received what kind of payment.
This comparison explains the general categories, not which slip to issue in a particular case. Confirm the worker and payment type using current Canada Revenue Agency (CRA) guidance or professional advice. Do not decide from this article alone.
Three slips, three different relationships
| Slip | Typical relationship |
|---|---|
| T4 | Employer to employee, for employment income. |
| T4A | Payer to a recipient of pension, retirement, annuity or certain other income, including some self-employed commissions. |
| T5018 | Contractor to a subcontractor, for construction-industry contract payments. |
T4: employment income from an employer
A T4 reports the pay an employer gave an employee during the calendar year. It reflects an employment relationship, where the employer takes required deductions from pay. It is not for an independent contractor who invoices the business for services.
T4A: pension, retirement and other income, more broadly
A T4A reports pension, retirement, annuity and certain other income paid during the year. An annuity provides a series of payments under an arrangement. Other categories can include some self-employed commissions and educational-assistance payments from a registered education savings plan (RESP). The T4A covers more kinds of income than a T4. It does not automatically cover every payment to someone who is not an employee.
T5018: construction-industry contract payments
A T5018 reports total contract payments a contractor made to a recipient during a calendar year or fiscal period, the business's financial reporting period. CRA uses it specifically for construction-industry compliance. A business outside construction does not automatically use it just because it pays a self-employed subcontractor. The industry context is part of the test.
This is not a worker-status test
First establish the worker's status and the kind of payment. Is this employment pay, pension or other income, or a construction subcontract payment? That decision comes before the slip choice. Use this comparison to understand the three purposes. Then check current CRA guidance for the particular worker or payment.
Bookwits clients and documents can hold a per-client note recording which slip decision was made and a task to confirm the slip was issued on time. Bookwits does not file slips with CRA, calculate payroll or contractor-payment amounts, or determine worker status — those remain the practice’s and the client’s own responsibility.
Frequently asked questions
Can a construction subcontractor receive both a T4 and a T5018 in the same year?
It is possible if the same individual has two genuinely different relationships with the payer during the year — for example, part-time employment plus separate subcontract work. That is a classification question specific to the facts, which should be confirmed against current CRA guidance rather than resolved from this article alone.
Does a T4A replace a T4 whenever someone is not technically an employee?
Not automatically. A T4A covers pension, retirement, annuity and certain other income including some self-employed commissions, but the underlying worker classification is a separate question. Issuing whichever slip feels safer, without checking the actual relationship, is not a substitute for that determination.
Is this article tax advice on which slip to issue?
No. It is a classification-awareness comparison only. A specific situation should be confirmed against current CRA guidance or a qualified professional before a slip decision is finalized.