If you pay people who aren’t your employees—like contractors, trainers, speakers, or service providers—you’ve probably heard someone mention “T4A slips.” For many small business owners, the term sounds technical and a bit intimidating.
The good news: once you understand what a T4A is and when it’s required, it becomes just another part of your year-end routine instead of a source of stress.
This guide walks through what a T4A slip is, when it’s used, and how it fits into your overall tax and compliance picture in Canada.
What is a T4A slip?
A T4A slip is an information return used in Canada to report certain types of income that aren’t regular employment income.
You can think of it as a way of telling the CRA:
“We paid this person or organization for services or other specific types of income, and here’s how much.”
Common examples of payments that may be reported on a T4A include:
• Fees to independent contractors or self-employed individuals
• Fees for professional services (consulting, coaching, design, IT, etc.)
• Certain commissions
• Some types of other income like research grants or scholarships (depending on your situation)
The slip goes to both:
• The CRA (as part of your information returns), and
• The recipient, so they can correctly report that income on their own return.
T4 vs T4A: what’s the difference?
A simple way to remember it:
• T4 – For employees (wages, salaries, CPP, EI, tax withholdings, etc.)
• T4A – For certain types of non‑employee and “other” income
If someone is on your payroll, with CRA remittances through a payroll account, they’re usually getting a T4, not a T4A. T4A is more commonly linked to contractors and certain other payments.
Why T4As matter for your business
T4A slips aren’t just busywork. They help you:
• Stay compliant with CRA rules
• Avoid penalties and interest for missing information returns
• Reduce audit risk, especially when your payments to contractors are significant
• Show contractors that you take compliance seriously
Ignoring T4As can backfire later if the CRA reviews your contractor expenses and asks, “Where are the slips?”
When you might need to issue a T4A
You may need to issue T4As if, in a tax year, you:
• Pay multiple contractors for ongoing services
• Work with self‑employed individuals rather than employees
• Pay referral fees, honoraria, or similar amounts
• Run a business that relies heavily on non‑employee labour
There are detailed CRA rules and thresholds around exactly which payments trigger a T4A requirement. When in doubt, check with your accountant or review the CRA’s latest guidance.
What’s on a T4A slip?
A T4A slip typically includes:
• Payer information (your business)
• Recipient information (name, address, often SIN or business number where required)
• The amount paid in specific boxes (for example, fees for services or other income types)
• The tax year the payments relate to
From a practical standpoint, the challenge isn’t understanding what a T4A looks like—it’s making sure your data is complete and accurate.
Common pitfalls small businesses run into
Here are a few issues that come up often:
• Not tracking contractor payments separately from other expenses
• Waiting until February to collect missing SINs and addresses
• Confusing who should receive a T4 vs a T4A
• Assuming “they’re self‑employed” means no slips are needed at all
These are all process problems—and they’re solvable.
How T4ASlip can help
The hardest part for most small businesses isn’t understanding what a T4A is—it’s collecting information, organizing payments, and filing everything correctly and on time.
That’s where tools like T4ASlip come in. A tool built specifically for T4As can help you:
• Centralize contractor information and keep it up to date
• Import payout data from spreadsheets or accounting tools
• Flag missing information before it becomes an emergency
• Generate T4A slips and summaries in a consistent way each year
Instead of rebuilding the process every February, you follow the same, predictable workflow.
Final thoughts
A T4A slip is simply the CRA’s way of tracking certain non‑employee income. For you as a business owner, it’s a signal to:
• Track contractor payments properly
• Know when a T4A may be required
• Build a repeatable process so T4A season doesn’t feel like an emergency every year
Used properly, T4As protect your business. They show the CRA—and the people you pay—that you take compliance seriously, without needing a tax degree to prove it.