Generally, companies that earn more than 50 per cent of their income from construction activities and make payments to subcontractors are required to prepare and file T5018 Summaries and slips to the CRA. This is a method the government uses to attempt to stem the underground economy.
Companies that prepare T5018 slips should distribute them to the recipients.
Companies can file within:
- Six months of their fiscal year end.
- Six months of December 31.
While the choice is yours, you generally need to follow the chosen filing frequency unless the CRA provides written permission to change.
Companies with more than 50 slips are required to file them over the Internet.
Failure to file: $25 per day late, with a minimum penalty of $100 and maximum penalty of $2,500.
Late filing penalty: The penalty for late filing of T5018 slips is $100 plus $10 to $75 per day, depending on how many slips are filed late.