It’s easy to think, “We’re a small organization. If T4As are a bit late, it’s not a big deal.” Unfortunately, the CRA doesn’t see it that way. Late or missing T4A slips can lead to penalties, added interest, and a lot of unnecessary stress.
This article explains the real costs of late T4As—financial and non-financial—and how to avoid them.
The financial impact: penalties and interest
The CRA can charge penalties for failing to file information returns on time. The amount can depend on:
• How late you filed
• How many slips are missing or late
• The size of your organization
While the exact penalty tables can change, the pattern is consistent:
• A few slips filed a bit late → smaller penalty
• Many slips or very late filing → higher penalty
If underlying tax amounts are affected or reassessed, interest can also apply. Even if the dollar amount isn’t huge, it’s still money that could have gone back into your programs or operations.
The hidden costs: time, stress, and distraction
Even when penalties are modest, the operational cost can be huge:
• Staff scrambling to reconstruct payment histories
• Chasing down contractors for missing info under time pressure
• Extra emails and calls with your accountant
• Worry about whether more CRA attention is coming
All of that is time not spent serving customers, running your league, or growing your business.
How late slips affect your contractors
Late T4A slips don’t just hurt you. They can:
• Delay contractors’ ability to file their personal tax returns
• Create confusion if they’re unsure how much income to report
• Damage your reputation as an organized, professional payer
If your contractors rely on their returns for refunds or benefits, delays can be more than an inconvenience. A pattern of late slips can also erode trust and make it harder to retain good people.
Why T4As go late in the first place
In most organizations, T4As are late because:
• Contractor information isn’t collected up front
• Payments aren’t tagged clearly in the accounting system
• The process depends on one overworked person who has other priorities
• There’s no reminder or checklist for T4A season
In other words, it’s usually a process problem, not a motive problem.
How to stay ahead of the deadline
You can dramatically lower your risk by:
1. Identifying T4A recipients early
• Flag contractors and service providers when you onboard them.
2. Centralizing data
• Keep contractor information and payments in one place, not across multiple spreadsheets and inboxes.
3. Setting internal cut-off dates
• Aim to have your data ready well before the CRA deadline, not on the deadline itself.
4. Using automation where possible
• Tools like T4ASlip can pull together payouts, validate missing info, and generate slips efficiently.
Creating a T4A calendar
A simple T4A calendar might include:
• Early fall – review which contractors you’ve paid so far and confirm contact details
• Early January – pull full-year payment data and update your T4A recipient list
• Mid-January – draft and review slips
• Before the deadline – file T4As with CRA and send copies to recipients
With that kind of timeline, a missed slip becomes an exception you can fix—not a systemic crisis.
The peace-of-mind factor
The real benefit of being on time isn’t just avoiding penalties—it’s peace of mind. When your T4As are filed correctly and on time, you:
• Sleep better
• Reduce the chance of stressful letters from the CRA
• Build trust with the people you pay
Late T4As are stressful and expensive emotional overhead. A better process is almost always cheaper than that stress in the long run.
Where T4ASlip fits in
T4ASlip is designed to reduce the odds that you’ll fall behind by:
• Helping you centralize contractor info early
• Making it easy to pull in payment data
• Highlighting missing or incomplete information before filing
• Streamlining generation of slips so you’re done well before the deadline
That way, “we’ll deal with it later” doesn’t turn into “we’re dealing with penalties now.”