T4A slip: what it is and when you must issue one

Published Friday 31 July 2026

Table of contents

• What is a T4A slip?
• T4A vs T4: What's the difference?
• Who needs to issue a T4A slip?
• When you don't need to issue a T4A
• Key boxes on the T4A slip explained
• How to file T4A slips with the CRA
• T4A filing deadline and penalties
• What to do if you receive a T4A slip
• Common T4A mistakes to avoid
• Simplify T4A filing with Xero
• FAQs on T4A slips

Key takeaways

• A T4A slip reports non-employment income such as fees for services, commissions, pensions, and other payments to the CRA. You must issue one when payments to a single recipient reach $500 or more in a calendar year, or when you've withheld tax.
• T4A slips differ from T4 slips. T4s cover employment income withCPP and EI deductions, while T4As cover payments to contractors, freelancers, and other non-employees.
• The filing deadline is the last day of February following the tax year. Late filing triggers penalties starting at $10 per day for each slip, depending on how many slips you file.
• Accurate reporting matters. Common mistakes include adding GST/HST to the payment amount, using the wrong box number, and misclassifying workers as contractors when they should be employees.

What is a T4A slip?

A T4A slip, formally called the Statement of Pension, Retirement, Annuity, and Other Income, is a Canadian tax form used to report specific types of non-employment income paid during a calendar year. As a payer, you send one copy to the recipient and file another with the Canada Revenue Agency (CRA).

Unlike a T4 slip (which covers salaried or hourly employees), a T4A captures payments where no Canada Pension Plan (CPP) or Employment Insurance (EI) has been deducted at source. This includes fees paid to independent contractors, self-employed professionals, pension recipients, scholarship holders, and more.

Types of income reported on a T4A

The T4A covers a broad range of payment types. Some of the most common categories include:

• Fees for services (box 048): payments to freelancers, consultants, and independent contractors
• Pension or superannuation (box 016): employer-sponsored pension payments
• Lump-sum payments (box 018): one-time payouts such as retiring allowances
• Self-employed commissions (box 020): commissions paid outside of an employment relationship
• Annuities (box 024): regular annuity payments
• Scholarships, bursaries, fellowships, and research grants (box 105): amounts for education or academic research that exceed eligible exemptions
• Other income (box 028): any taxable income that doesn't fit into another specific box

T4A slip variants

Several related slips serve specific income types. Knowing which one applies helps you file correctly.

• T4A(P): reports CPP or Quebec Pension Plan (QPP) benefits, issued by Service Canada
• T4A(OAS): reports Old Age Security payments, also issued by Service Canada
• T4A-RCA: reports amounts from a Retirement Compensation Arrangement

If you're making standard contractor or non-employment payments, the regular T4A is the form you need.

T4A vs T4: What's the difference?

The T4 and T4A both report income to the CRA, but they apply to different working relationships. The distinction comes down to how the worker is classified and whether payroll deductions are involved.

A T4 slip is for employees. It reports salary, wages, tips, bonuses, and other employment income, along with CPP contributions, EI premiums, and income tax deducted at source. You issue a T4 for anyone on your payroll.

A T4A slip is for non-employees. It reports fees, commissions, pensions and other income where you haven't deducted CPP or EI. You issue a T4A to independent contractors, freelancers, and other recipients of non-employment payments.

Getting this distinction right is critical. Issuing the wrong slip can lead to compliance issues with the CRA and may raise questions about whether a worker has been properly classified.

For more information, see this payroll guide for small businesses in Canada.

Who needs to issue a T4A slip?

Any business, organization or individual that makes qualifying non-employment payments during a calendar year may need to file T4A slips. This applies to sole proprietors, partnerships, and corporations alike.

The $500 threshold rule

You must issue a T4A slip when the total payments to a single recipient reach $500 or more in a calendar year. If you've withheld income tax from a payment, you must issue a T4A regardless of the total amount paid.

The $500 threshold applies to the combined total across all payments to one recipient during the year, not to each individual payment.

Common scenarios requiring T4A issuance

Here are situations where you would typically issue a T4A:

• Paying a freelance graphic designer $2,000 for branding work
• Hiring an independent IT consultant for a project totalling $750
• Paying a guest speaker $600 for a conference appearance
• Making commission payments to a self-employed sales agent
• Distributing scholarship or bursary funds to a student

When you don't need to issue a T4A

Not every payment to a non-employee requires a T4A. Several common situations are exempt from filing.

• Payments to incorporated businesses: If you pay a corporation for services, you generally don't need to issue a T4A for that payment.
• Payments under $500: If total payments to a single recipient stay below $500 in a calendar year and no tax was withheld, no T4A is required.
• Construction subcontractor payments: These are reported on a T5018 slip instead.
• Payments to non-residents: Income paid to non-residents of Canada is reported on an NR4 slip, not a T4A.
• Reimbursement of expenses: If you're covering a contractor's out-of-pocket expenses (such as travel or materials) with receipts, these reimbursements aren't reportable on a T4A.

Key boxes on the T4A slip explained

Each box on the T4A slip corresponds to a specific type of income or deduction. Entering amounts in the correct box is essential for accurate reporting. Here are the boxes you're most likely to use.

• Box 016 (pension or superannuation): employer-sponsored pension payments
• Box 018 (lump-sum payments): one-time payments such as retiring allowances
• Box 020 (self-employed commissions): commission income paid outside an employment relationship
• Box 022 (income tax deducted): the amount of income tax you withheld from the payment
• Box 024 (annuities): regular annuity income
• Box 028 (other income): taxable income that doesn't fit another box category
• Box 048 (fees for services): payments for professional or consulting services, one of the most commonly used boxes for contractor payments
• Box 105 (scholarships, bursaries, fellowships, and research grants): educational or research-related payments

When reporting in box 048, enter the gross amount of the fee, excluding any GST or HST charged. Including sales tax in the reported amount is a common error.

How to file T4A slips with the CRA

Filing T4A slips involves collecting information, preparing the forms, and submitting them to the CRA before the deadline. Here's how the process works.

Step-by-step filing process

Follow these steps to file your T4A slips accurately.

1. Collect the Social Insurance Number (SIN) and full legal name of each recipient. Request this information before or at the time of the first payment.
2. Calculate the gross payment amount for each recipient during the calendar year. Exclude any GST/HST charged.
3. Prepare individual T4A slips for each recipient, entering amounts in the correct boxes.
4. Complete the T4A Summary form, which totals all the individual slips you're filing.
5. File the slips and summary with the CRA electronically or on paper (see below for requirements).
6. Distribute copies to each recipient so they can report the income on their tax return.

SIN collection requirements

You're required to make a reasonable effort to obtain a recipient's SIN. The CRA expects you to request it at least three times in writing before concluding you can't collect it.

If you still don't have the SIN after three attempts, file the T4A slip without it. Keep records of your attempts in case the CRA asks for proof of your efforts.

Electronic vs paper filing

As of January 2024, if you're filing six or more information returns (including T4A slips), you must file them electronically. Paper filing is only permitted for five or fewer slips. This is a change from the previous threshold of 50 slips.

Web Forms and Internet File Transfer (IFT) allow you to create and submit slips directly online at no cost.

T4A filing deadline and penalties

Missing the T4A deadline or filing with errors can result in financial penalties. Understanding the timeline and consequences helps you stay compliant.

Filing deadline

T4A slips and the T4A Summary must be filed with the CRA by the last day of February following the calendar year in which the payments were made. For example, slips for the 2026 tax year are due by 28 February 2027.

Recipients should also receive their copies by this date so they have enough time to file their personal tax returns.

Penalty structure for late filing

The CRA charges daily penalties for late T4A filings, based on how many slips you're submitting.

• 1 to 50 slips: $10 per day, up to a maximum of $1,000
• 51 to 500 slips: $15 per day, up to a maximum of $1,500
• 501 to 2,500 slips: $25 per day, up to a maximum of $2,500
• 2,501 to 10,000 slips: $50 per day, up to a maximum of $5,000
• More than 10,000 slips: $75 per day, up to a maximum of $7,500

These penalties apply for each day the filing is late, starting from 1 March. Filing even a few days late can add up quickly.

How to amend a T4A

If you spot an error after filing, submit an amended T4A slip as soon as possible. You can file amendments electronically through the CRA's online services or by sending a corrected paper slip marked as "amended." Correcting errors promptly helps avoid additional penalties and keeps your records accurate.

What to do if you receive a T4A slip

If you're on the receiving end of a T4A, the slip tells you (and the CRA) how much non-employment income you earned from a specific payer during the year. You need to report this amount on your personal or business tax return.

Where you report it depends on the type of income. Self-employed contractors typically report fees for services on the T2125 form (Statement of Business or Professional Activities), which also allows you to deduct eligible business expenses against that income. Pension income, scholarships, and other categories each have their own designated lines on the T1 return.

If any income tax was deducted (shown in box 022), you can claim that amount as a credit when filing your return. Review the slip carefully and contact the payer if you believe any amounts are incorrect.

Common T4A mistakes to avoid

Filing T4A slips accurately saves time and prevents issues with the CRA. Here are the most frequent errors to watch for.

• Including GST/HST in the reported amount: Report the gross fee or payment only, excluding any sales tax the recipient charged.
• Misclassifying workers: Treating an employee as an independent contractor (or vice versa) can lead to penalties, reassessments, and back payments for CPP, EI, and income tax. The CRA looks at factors like the level of control, ownership of tools, and financial risk to determine the relationship.
• Missing the filing deadline: Late filings trigger automatic daily penalties that accumulate quickly.
• Not collecting SINs: Failing to request a recipient's SIN at least three times can result in a $100 penalty per missing SIN.
• Using the wrong box: Entering an amount in the wrong box can cause confusion for the recipient at tax time and may trigger CRA inquiries.
• Reporting payments to corporations: Most payments to incorporated businesses don't require a T4A, and issuing one unnecessarily creates extra paperwork for both parties.

Simplify T4A filing with Xero

Tracking contractor payments, collecting the right details, and meeting the February deadline can feel like a lot to manage on top of running your business. Xero's accounting software helps you stay organized by keeping accurate records of every payment you make to contractors and non-employees throughout the year.

With clear, real-time visibility into your finances, you can pull together the information you need for T4A slips without digging through spreadsheets or paper records. Spend less time on tax paperwork and more time growing your business.

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FAQs on T4A slips

Here are answers to common questions about T4A slips in Canada.

Is T4A income taxable?

Yes. All income reported on a T4A slip is taxable and must be included on your annual tax return. If you're self-employed, you can offset this income by claiming eligible business expenses on your T2125.

Here’s more information about how to use a T2125 form to report your professional income.

Do I need to issue a T4A to a corporation?

In most cases, no. Payments made to an incorporated business for services are generally exempt from T4A reporting. The exception is if the payment is for a specific category that requires reporting regardless of the recipient's business structure, such as certain pension or retirement benefits.

Can I file T4A slips on paper?

Since January 2024, you can only file on paper if you have five or fewer slips. If you're filing six or more, the CRA requires electronic submission.

What happens if I don't file a T4A on time?

The CRA applies daily penalties starting from 1 March if slips aren't filed by the last day of February. Penalties range from $10 to $75 per day depending on the number of slips, with maximums between $1,000 and $7,500.

What should I do if I receive a T4A with incorrect information?

Contact the payer and ask them to issue a corrected slip. Don't file your tax return with amounts you know to be wrong. If the payer is unresponsive, you can contact the CRA directly to report the discrepancy.

Is a T4A the same as a T4?

No. A T4 reports employment income where CPP and EI deductions have been made, while a T4A reports non-employment income such as contractor fees, pensions, and commissions where no payroll deductions apply.