If you’re a sole proprietor in Canada—maybe a coach, designer, consultant, driver, or creator—you might be unsure what to expect at tax time:
“Do I get T4A slips? Or do I just report whatever’s in my bank account?”
The answer: it depends on who’s paying you, how they’re tracking your income, and whether the payments fit categories the CRA expects on a T4A. You can absolutely be a sole proprietor and receive T4A slips—but you won’t always get one for every dollar you earn.
This article breaks down when sole proprietors do and don’t receive T4As, and how those slips fit into your tax return.
Quick refresher: what is a sole proprietor?
A sole proprietor is an individual who runs an unincorporated business. There’s no separate legal entity; you and the business are the same person for tax purposes.
You typically:
• Report business income and expenses on your personal tax return (for example, using Form T2125).
• Track your own invoices, payments, and costs.
• Don’t receive a T4 for your own business income—T4s are for employment income.
But you might receive T4A slips from some of the organizations that pay you.
When sole proprietors commonly receive T4A slips
You’re more likely to receive a T4A when:
• A business or organization pays you for services and treats those payments as T4A-reportable.
• You work with clients who have strong compliance processes (for example, larger companies, governments, or well-organized leagues).
• Your total payments from that payer fit into T4A categories under CRA rules.
Examples:
• A sports association pays you throughout the year to referee games and sends you a T4A summarizing your total fees.
• A company pays you as a self-employed trainer or consultant and issues a T4A for the calendar year.
• You receive honoraria or certain other income types that CRA links to T4A boxes.
When sole proprietors may not receive T4A slips
You might not receive any T4As if:
• Your clients are small or informal and aren’t in the habit of issuing slips.
• Individual payments or total amounts are below thresholds or outside income types CRA expects on T4As.
• You primarily invoice many small clients, each of whom doesn’t treat the relationship as requiring T4A reporting.
In these cases, you still have to report your income—whether or not a slip exists. Your obligations as a taxpayer don’t vanish just because a payer didn’t issue a T4A.
How T4A slips fit into your tax return as a sole proprietor
Think of T4A slips as part of your income picture, not the whole picture. For example:
• You might receive a T4A from a large client showing $25,000 of income.
• You might also have $15,000 of additional income from other clients who did not issue slips.
On your tax return, you’ll generally report:
• The income shown on T4As, plus
• All other business income not captured on those slips, minus
• Legitimate business expenses.
The T4A is a tool—but your primary responsibility is to keep your own records (invoices, bank deposits, accounting records) and report all income, not just the amounts that appear on slips.
Common questions from sole proprietors
“Do I need to chase clients for T4As?”
Not usually. Your focus should be on keeping accurate own records. If a client issues a T4A, treat it as confirmation of what they report paying you. If they don’t, you still report what you actually earned.
“What if the T4A doesn’t match my records?”
You’ll want to reconcile the difference. Maybe an invoice crossed year-end, or there was a refund, or a timing difference. If the slip looks clearly wrong, contact the payer and ask for clarification or a correction.
“If I don’t get a T4A, do I still have to report the income?”
Yes. All business income must be reported, with or without slips. CRA can see deposits in your bank account and compare them to your return.
“Can one client issue a T4A while others don’t?”
Yes. Different payers may have different processes and thresholds. That doesn’t change your obligation to track and report everything.
From the payer’s perspective
If you’re on the other side—an organization paying sole proprietors—T4ASlip can help you:
• Track which sole proprietors you’ve paid and how much.
• Decide, with your accountant, which relationships should get T4As.
• Generate slips in a consistent, CRA-aligned way.
That increases the odds that your sole proprietor contractors receive accurate, timely T4As when appropriate.
Key takeaways for sole proprietors
• You can be a sole proprietor and receive T4A slips—but you may not always receive one for every client.
• T4As are part of your income picture, not the whole story.
• You’re responsible for tracking and reporting all business income, with or without slips.
• If a T4A doesn’t match your records, don’t ignore it—reconcile and, if needed, ask the payer to review it.
T4A slips are there to help you and the CRA connect the dots. But the foundation of your tax return is still your own documentation and bookkeeping.