GST & Tax · Edmonton
T4 vs T4A vs T5018: which slip, who, when.
Employees, contractors and subcontractors each get a different CRA slip, on a different schedule. Here's how to tell them apart and stay on top of the deadlines.
By the Plum team- Updated Oct 2026
- 8 min read
- T4: employees you paid through payroll. Due the last day of February.
- T4A: certain payments that aren't employment, including fees for services. Also due the last day of February.
- T5018: construction subcontractors, if construction is your main business. Due six months after your reporting period.
- The slip follows the relationship and the industry, not what the worker asks for.
Every winter, Alberta small business owners hit the same question: T4 vs T4A vs T5018, which slip does this person get? The answer depends on whether they're an employee or a contractor, and whether your business is in construction. Get it wrong and you can end up with penalties, a confused worker, or a CRA review asking why the numbers don't match.
Here's a plain-English breakdown for businesses in Edmonton, Spruce Grove, Fort Saskatchewan and across the province.
1T4 vs T4A vs T5018 at a glance
| T4 | T4A | T5018 | |
|---|---|---|---|
| Who gets it | Employees | Self-employed individuals paid fees for services, and other income types | Construction subcontractors, incorporated or not |
| Who issues it | Any employer | Any business making reportable payments | Businesses whose main activity is construction |
| Deductions shown | CPP, EI, income tax | Usually none | None |
| Reporting period | Calendar year | Calendar year | Calendar or fiscal year, your choice |
| Due date | Last day of February | Last day of February | Six months after period end |
| Threshold | Any employment income | Generally over $500 in the year, or any tax withheld | $500 or more in the period |
One business, several kinds of slips
Say you own an incorporated renovation company in Spruce Grove, and construction is your main business. This year you paid:
| Who | How you paid them | Slip |
|---|---|---|
| Two carpenters | Payroll, with CPP, EI and tax deducted | T4 for each |
| An incorporated drywall subcontractor | Invoices for construction work | T5018 |
| A sole proprietor electrician | Invoices for construction work | T5018 |
| Yourself, as the shareholder | Dividends from the corporation | T5 |
| A building supply store | Materials only | No slip |
One small company, four different outcomes. The forms themselves aren't hard. The hard part is having each payment coded to the right person and account all year, so the totals are ready when the deadline arrives.
2The T4: for employees
If someone is on your payroll, they get a T4. It shows their employment income for the calendar year and the CPP, EI and income tax you withheld and remitted. It also reports taxable benefits, like a company vehicle used personally or an employer-paid gym membership.
Your T4 totals should match what you remitted to CRA during the year. If they don't, CRA will notice, usually through a letter asking you to explain the difference. Reconciling your payroll liabilities each month makes year end painless. Our guide to payroll remittances walks through that monthly routine.
Owner-managers who pay themselves a salary through their corporation get a T4 like anyone else. If you pay yourself dividends instead, that's a T5 slip, which has its own summary and the same last-day-of-February deadline.
3The T4A: for fees and other payments
The T4A is a catch-all slip for amounts that aren't employment income. For small businesses, the box that matters most is fees for services: payments to self-employed individuals for work they did for your business. Think of a freelance designer, a contract bookkeeper or a consultant you paid directly.
It also covers things like pensions, some commissions paid to non-employees, scholarships and certain other income. CRA's T4A guide sets out which boxes apply and the thresholds, which generally require a slip when the total paid in the year is over $500 or when you withheld any tax.
4The T5018: for construction subcontractors
If your business's main activity is construction, meaning construction makes up at least half of your business income, you report payments to subcontractors for construction services on a T5018. That includes general contractors, renovators, electricians, plumbers and other trades who hire subs.
Key differences from the T4A:
- Corporations get one too. T5018 reporting covers incorporated subcontractors, not just individuals.
- You choose the period. Calendar year or fiscal year. Once chosen, you generally can't switch without CRA's approval.
- The deadline is six months after the end of that period. A calendar-year reporter files by June 30.
- Only construction services count. Materials-only purchases from a supplier don't go on it.
Construction businesses that issue T5018s generally don't also issue T4A fee slips for the same construction payments. Our dedicated guide to T5018 subcontractor slips in Alberta goes deeper, with examples for common trades.
5Employee or contractor? Getting it right first
Before you can pick a slip, you need to know whether the person is an employee. CRA looks at the whole working relationship, including:
- Control. Do you set their hours, methods and where they work?
- Tools and equipment. Do they supply their own?
- Chance of profit or risk of loss. Can they make more by working efficiently, or lose money on a job?
- Integration. Do they work for other clients, advertise, and run their own business?
If it looks like employment, it usually is, regardless of the contract wording. Get it wrong and CRA can assess the CPP and EI you should have deducted, plus penalties and interest. Either side can ask CRA for a ruling if it's genuinely unclear. This matters especially for salons, gyms and trades, where contractor arrangements are common.
6Year-end slip checklist
Common slip mistakes
Issuing a T4A to an employee. If someone was really an employee, a T4A doesn't fix the missing CPP, EI and tax. It flags the problem.
Missing the T5018 entirely. Many Edmonton-area trades don't realise the T5018 exists until CRA asks why it wasn't filed.
Totals that don't match the books. Your slips should tie to your general ledger. If contractor payments are spread across five expense accounts, pull a vendor report instead of guessing.
Filing on paper when you shouldn't. More than five slips of one type generally means electronic filing. Paper filing can carry its own penalty.
Late filing. CRA charges late-filing penalties based on how many slips are late and how late they are. Small numbers add up quickly across a crew.
Slip season is much easier when your contractor payments are tracked properly all year. If you'd like help, Plum prepares T4s, T4As and T5018s for small businesses across Edmonton, Spruce Grove and Fort Saskatchewan. Book a free 15-minute call before the February rush.
7Questions people ask
What's the difference between a T4 and a T4A?
A T4 reports employment income paid through payroll, with CPP, EI and income tax deducted. A T4A reports other amounts, including certain fees paid to self-employed people for services, pensions and some other income.
Who gets a T5018 slip?
Subcontractors who provided construction services to a business whose main activity is construction. It applies whether the subcontractor is an individual, a partnership or a corporation, for payments of $500 or more in the reporting period.
When are T4 and T4A slips due?
T4 and T4A slips and summaries for a calendar year are due on the last day of February of the following year. Employees and recipients should get their copies by the same date.
When is the T5018 due?
Six months after the end of your reporting period. You choose a calendar year or your fiscal year as the reporting period and generally have to stick with it.
Do I have to file slips electronically?
If you file more than five slips of one type for a calendar year, CRA generally requires you to file them electronically, for example through your payroll software or CRA's web forms.
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Book a free 15-min callThis article is general information for Alberta businesses and isn't tax or legal advice. Rules and thresholds change, so confirm your situation with your accountant or CRA.