T4A Contractor Compliance Checklist (Canada)

Avoid misclassification issues and year-end filing headaches.

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Before You Pay a Contractor

Collect the contractor's legal name and BN (or SIN if unincorporated)
Confirm the worker is properly classified (not really an employee)
Put the scope and payment terms in a written agreement

During the Year

Track total payments per contractor
Keep contractor records on file for at least 6 years
Confirm whether the contractor is incorporated (T4A generally not required for incorporated businesses)

Year-End Filing

Issue a T4A slip (box 048) to contractors paid for services
File T4A slips with the CRA by the last day of February
Provide a copy to each contractor by the same deadline

Red Flags to Review

Contractor works set hours you control
Contractor uses only your equipment and tools
Contractor has worked exclusively for you for over a year

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Frequently Asked Questions

Do I need to issue a T4A to every contractor I pay?

Generally yes for unincorporated contractors paid for services, though incorporated businesses are typically exempt — confirming incorporation status upfront saves work at year-end.

What's the T4A filing deadline?

T4A slips must be filed with the CRA and provided to contractors by the last day of February following the calendar year in which payments were made.

What makes someone an employee instead of a contractor in Canada?

The CRA looks at control, ownership of tools, chance of profit/risk of loss, and integration into the business. The more control you exercise over how and when the work gets done, the more likely they're legally an employee.

Is there a US version of this checklist?

Yes — see the 1099 Contractor Compliance Checklist, which covers IRS Form 1099-NEC requirements instead of the Canadian T4A slip.

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