One of the hardest parts of T4A compliance is figuring out who actually needs a T4A slip. You might pay dozens of people and organizations each year—employees, contractors, guest speakers, trainers, referees, drivers, consultants, and more.
This guide walks through common scenarios so you can spot when a T4A may be required.
Contractors and freelancers
You may need to consider issuing a T4A to:
• Coaches, trainers, or instructors you pay for sessions
• Freelance designers, marketers, or developers
• Independent consultants or specialists
• Referees, umpires, or other game officials paid per game
• Self-employed drivers, technicians, or field workers
If the person is self-employed and you’re paying them for services as part of your business, they’re a prime T4A candidate, depending on CRA rules for that category of payment.
Professional services
Certain professional fees may also be connected to T4A reporting, depending on CRA categories and whether the payee is an individual or a corporation. Examples include:
• Accounting or bookkeeping services
• Legal services
• External consultants and advisors
Whether a T4A is needed can depend on the structure of the recipient (individual vs corporation) and current CRA rules, so professional advice is useful here.
Vendors vs service providers
Not every payment to a “vendor” is T4A-type income. Consider the difference:
• Product purchases – buying inventory, equipment, or supplies generally doesn’t involve a T4A.
• Service payments – paying someone to perform work for you may require a T4A, especially when they’re individuals.
If you’re paying for labour or expertise, not just physical goods, that’s where T4A questions start.
One-off vs ongoing payments
A single small payment may not require a T4A, depending on thresholds and CRA guidance. But:
• Ongoing or repeated payments to the same contractor often add up
• By year-end, you may have paid enough that a slip becomes expected
That’s why tracking total payments per recipient during the year is so important.
Grey-area scenarios you should at least review
Here are a few situations where you should pause and think about T4As:
• Paying someone a “thank you honorarium” for a talk or workshop
• Paying through e-transfer or cheque to a personal name instead of a business name
• Paying someone who insists they’ll “handle their own taxes”
The method of payment or what the recipient says doesn’t change your obligations. The key question is: would CRA view this as income from services or other T4A-type income?
Building your “T4A list”
A practical approach is to maintain a simple list in your system of:
• Names and contact info of contractors and service providers
• Whether they’re individuals or corporations
• Total paid during the year
• Notes on what services they provide
By December, that list becomes your working T4A list. You and your accountant can review it together to confirm who should receive slips under current rules.
How T4ASlip helps identify who gets a T4A
When you run your contractor and payout process through a tool like T4ASlip, you can:
• Tag recipients as potential T4A cases when you onboard them
• Track total payments automatically
• Flag people who cross your internal or CRA thresholds for T4A reporting
• Generate slips from the same data, without re-typing
That means less guesswork in February and fewer surprises when your accountant asks, “Who are all these people in your expenses?”
Key reminder
You don’t have to memorize every CRA rule, but you should:
• Know which recipients are employees (T4) vs potential T4A recipients
• Track contractor payments by person or entity
• Keep a running “T4A candidate list” throughout the year
With that foundation, confirming exactly who gets a T4A slip becomes a simpler conversation with your accountant and a much less stressful part of year-end.