In Canada, a payment to a subcontractor may have to be reported on a specific slip, and two traps await anyone preparing it by hand: confusing the amount that triggers the obligation with the one to be entered, and forgetting that one of the two copies must not carry the same information as the other. This application keeps the two amounts apart on every payment, and prepares the two copies separately.
Who the application is for
For businesses based in Canada that pay subcontractors, particularly in construction, and that need to determine whether those payments trigger a reporting obligation specific to the Canadian tax authority. This application is built around the Canadian rule: it is not meant for payments made from another country.
What the application does
- Keeps, on every payment to a subcontractor, the amount used to check whether the reporting threshold is exceeded and the amount to enter on the slip, side by side and never mixed up.
- Prints two separate copies of the slip, because one must carry information the authority asks never to be shown on the other.
- Flags payments that fall outside the scope of this return — a non-resident subcontractor, a main activity that is not construction, a payment covering goods only — with the reason, and the applicable form when there is one.
- Lets you choose the calendar year or the company's fiscal year as the reference period, and calculates the filing deadline from that period.
- Counts the number of slips of the same type and flags, citing its source, when that number requires electronic filing rather than paper.
- Opens, in its full edition, the public screen that confirms a subcontractor's tax registration, records the result you read there and dates it, never treating an absence of registration as a refusal.
Day to day
- Choose, in the company settings, the calendar year or the fiscal year as the reporting period.
- Record the payments made to each subcontractor through the year; the two amounts — threshold and box to declare — are kept apart without re-typing.
- For a special case — non-resident, activity outside construction, goods only —, mark the reason: the payment stays in the register, with the applicable form when there is one.
- At the end of the period, review the finding on the number of slips and the filing channel it points to.
- Produce the subcontractor's copy and the authority's copy separately, then the export meant for your filing software.
What the application does not do
- It does not transmit anything to the Canadian tax authority: it produces a filing file, and you deposit it through your own filing channel.
- It never concludes that a subcontractor is compliant or not: a registration confirmation, or its absence, is a dated finding, never a verdict.
- It has not been tested through a real filing with the Canadian tax authority: have your accountant check a first file before relying on it.
- Canadian tax rules can change: it does not replace the advice of your accountant or of the Canadian tax authority.
Free and full editions
The free edition already keeps the register of payments to subcontractors, keeps the threshold and the reported amount apart, prints the two copies and flags cases that fall outside the scope. The full edition installs on top without losing anything, and adds reported registration confirmation for the subcontractor, the finding on the filing channel, an export aligned with the slip, automatic linking to vendor payments and amended returns.
Getting started
First choose your company's reporting period — calendar year or fiscal year — and gather the identification of every subcontractor paid during the year. Then check, with your accountant, which cases in your activity fall outside the scope of this return, before producing your first slips.
Going further
To find out whether this application suits your business and how to activate it, compare the plans or write to us.