We have had many telephone conversations with the CRA in regards to issuing T4A’s, and we are trying to get something in writing from them but this is where we are at so far. The way the rule is written in the tax act a T4A should be issued for any individual or company that you pay for any fee or service. This boils down to unless you are buying goods or supplies (physical items) you need to make sure you have all that vendor's information. We have been told that they are currently concentrating on individuals who sub contract under their own name and social insurance number. We have also been told that they will be looking at companies that subcontract under an incorporated business or business and GST number. They say that they are only looking at subcontractors now, but that could change at any time.

It is in your best interest to make sure you have all the correct information anytime you pay someone. Get an invoice, and make sure it has their name on it, either full personal name or their business name. If they charge you GST, make sure their GST number is on that invoice. If there is no GST number, do not pay the GST. Make sure there is an address on that invoice as well. If you have all this information and they ever do decide to ask for it, you will be ready. Anytime you pay an individual for anything, if it totals more than $500 in a calendar year, we are going to recommend that you issue a T4A to them. This will show the government that you are complying with this newly enforced policy, so MAKE SURE TO GET THEIR INFORMATION!!!

The Canada Revenue Agency has informed us this week that they want any payments to sub contractors outside the construction industry reported on T4a slips. Currently any construction industry companies need to report the amounts they pay their sub contractors on T5018 slips. These T4A slips will report payments made to the sub contractors in the 2010 calendar year, from January to December. The slips will have to be filed with the CRA by the end of February 2011. You will need to have the following information for your contractors - Legal name, social insurance number or business number, and an address. We have created a form for you to use to gather and keep this information on file, the form can be found in our downloads section under Important PDF files. Just download the pdf file, and print off as many copies as you need. Please feel free to call our office if you have any questions.

Please be sure to visit the downloads area to find important files to help you keep track of your business operations, apply for new services, fill out employee forms and to download general files to help your business out.