T5018 Slip Canada: Construction Contract Payments
A T5018 is a gross-payment reconciliation slip used in the construction industry. It helps the CRA match contract revenue, but it does not calculate the subcontractor's net taxable business income.
What to read on the slip
| Box | What it means | What to check |
|---|---|---|
| Box 22 | Construction subcontractor payments — the total the contractor paid you during the period, including GST/HST and PST where applicable. | Reconcile to your invoices; a slip is required once total payments in the period exceed $500 excluding GST/HST. |
| Box 20 | For the period ending — the last day of the payer's reporting period covered by this slip. | Do not compare it against a different fiscal period of your own business. |
| Box 24 | The recipient's program account number or social insurance number, as reported by the payer. | Confirm the payer used your correct identifier so payments are matched to your account. |
Reconcile before filing
- Match the payer and reporting period to your contract records.
- Reconcile invoices, payments, holdbacks and any year-end timing difference.
- Report all business revenue, including revenue that did not appear on a T5018.
- Claim eligible expenses separately to arrive at net business income.
Frequently asked questions
What is a T5018 slip?
A T5018, Statement of Contract Payments, identifies total construction contract payments made to a recipient by a contractor for a calendar year or fiscal period.
Is the T5018 amount my taxable profit?
No. It reports gross contract payments, not net business income. A subcontractor still reports all business revenue and then deducts eligible business expenses separately.
What if my records show more revenue than the T5018?
Report all business income, not only amounts appearing on slips. T5018 information is a reconciliation record and does not replace invoices, deposits or a complete sales ledger.
Does sales tax form part of the T5018 amount?
The payer's reporting method and issued slip should be reconciled with invoices and the business GST/HST records. Do not use the T5018 total as a substitute for a GST/HST return.
What if the payer name or contract total is wrong?
Contact the contractor that issued the slip and compare invoices, change orders, holdbacks and payments for the same reporting period. The payer must correct its information return.