This is sometimes done to ensure that a subcontractor`s subcontractors are paid for in order to minimize the possibility of privileges on the work. Contractors report only on subcontractors with whom they deal directly. In such a case, the contractor would report the amount as payment to the subcontractor. The subcontractor would be responsible for reporting the amount as payment to the subcontractor. Although it is not mandatory, the rating agency encourages you to share this information with subcontractors by giving them a copy of the receipt. Your account number is not required on the subcontractor`s copy. Payments for pure goods do not have to be declared. Mixed payments for services and goods are reported when there is an annual service component totalling $500 or more. For each subcontractor, complete a receipt for the reporting period. The amounts you report in your abstract must correspond to the amounts you report on your pieces of paper. Errors or omissions may result in processing delays.
The credit rating agency recognises that, for practical reasons, companies may be required to submit information certificates from more than one site. This type of submission is only acceptable if the Business Number (BN) has a different account identifier for each location. For example, a contractor with offices in Quebec City and Edmonton has a single BN, 123456789, but can use their payroll number RP0001 to identify Quebec, and another, RP0002, to identify Edmonton. With different account credentials, the contractor can submit information slips from both offices. Payments for employees` salaries are not reportable, as these amounts are already included on the T4 receipt. However, if the employee is also performing work as a subcontractor, these subcontracting amounts must be indicated on a T5018 document. The place of residence determines the information sheet to be completed. If the subcontractor is located in Canada (for services provided within or outside canada), the contractual payments will be reported in a contract payment information return consisting of a T5018 summary and a receipt.
If the subcontractor is not located in Canada (for services provided in Canada), the contractual payments will be specified in a T4A NR information statement consisting of a summary and a T4A NR receipt. ABC General Contractor Inc. has a contract with XYZ Drywallers Ltd. for the installation of drywall. XYZ has a portion of the work of MNOP Plasters Inc. XYZ owes $1,000 to MNOP for the work. ABC writes a cheque for $1,000 to XYZ Drywallers Ltd. and MNOP Plasters Inc. These amounts are shown as follows: Enter the recipient`s 15-digit program account number (consisting of the nine-digit business number, a two-digit program identifier, and a four-digit reference number) or social security number.
Go to the GST/HST registration to verify that the subcontractor is registered for GST/HST. You can report payments on a calendar year basis or based on the end of your fiscal year. Once you have chosen a reporting period, subsequent tax returns for the same reporting year must be submitted, unless the credit rating agency has approved otherwise in writing. Enter the total amount of payments you made to the subcontractor during the period, including Goods and Services Tax/Harmonized Value Added Tax (GST/HST) and Provincial/Territorial Sales Tax, if applicable. If the total amount of payments to a subcontractor is less than $500, you do not need to complete a T5018 receipt for that subcontractor. If a subcontractor were paid by the exchange of goods or services, the fair market value of the goods or services exchanged would constitute part or all of the amount to be reported. Use the summary to report the sum of the amounts you reported on the relevant T5018 slips, or provide a document that includes all the summary information listed below, as well as your list or impression of payments you made to subcontractors. If you are a natural person, partnership, trust or business involved in construction activities that are your main source of income, and you make payments to contractors for construction services, you must report the amounts paid or credited (whether by cheque, cash, in exchange or by offsetting an amount due). To report payments to subcontractors for construction services, including GST/HST and provincial/territorial sales tax, you must do one of the following: Any contractor who plans to work with subcontractors to avoid taxes by obfuscating underground activities could be sued, with fines and penalties of up to 200% of the tax they tried to avoid. Enter your 15-digit business number (which consists of the nine-digit business number, data center, and a four-digit reference number) on your copy and the copy you only send to the rating agency. Do not enter your account number on the copies you give to contractors.
Report all amounts in Canadian dollars and cents, even if the amounts were paid in another currency. If you want to fill out your T5018 receipts with a PC, you can use the CRA PDF file to fill out T5018, Statement of Contract Payments. The credit rating agency will not reimburse you for the costs of preparing the information, but the costs are tax deductible. Enter the date that applies to the end of the calendar or tax year of the reporting period you selected. If you wish to change the reporting period, you must send a written request to your control center and indicate the reason for the change. The T5018 information return is due no later than the date following six months after the end of the reporting period you have chosen. This also applies if you are a resident of Canada and you are paying a Canadian resident for construction services performed outside of Canada. Enter the name and address of the company or person to whom you made the payment. Enter your legal name, business name (if different from your legal name), and full business address. It is a legal form published by the New York City Department of Parks and Recreation – a government agency operating in New York City. To date, no separate form submission guidelines are provided by the issuing service. Enter the total number of T5018 slips that you include in the T5018 summary.
PDF t5018-sum-17e.pdf PDF to fill/save t5018-sum-fill-17e.pdf If you do not submit a T5018 information return, the penalty for each error is $25 per day, with a minimum penalty of $100 up to a maximum of $2,500. Add the amounts in box 22 on all T5018 slips. Enter the sum on line 82. The following examples do not include all construction activities. For more information on construction activities, consult NAICS (North American Industry Classification System) and select code 23 for more details. Construction activities refer to the construction, excavation, installation, modification, modification, repair, improvement, demolition, destruction, dismantling or removal of part of a building, structure, surface or subsoil construction. If your business ceases operations, you must submit the information return within 30 days of your business` end date. Press the PRINT button to print only the current page. Download the document to your desktop, tablet or smartphone to print it in its entirety. The authorized person must sign and date the T5018 abstract. If you choose to submit your return on paper, send it to: If more than 50% of a company`s income activities are engaged in construction, its main source of income is considered construction. Enter the name and phone number of a contact person who can call the credit rating agency to obtain or clarify the information you reported when returning the information.
. If you fail to submit a T5018 information return before the due date, the credit rating agency may impose a late submission penalty. For the complete structure of penalties, see Returning information on late submissions. For best results, download this form and open it in Adobe Reader. For more information, see General information. The last day of the payer`s reporting period for that tax return. Enter your 15-digit business number (e.g. 123456789RZ0001).
If you don`t have an account number, go to Register your business. In many cases, there are businesses that have significant amounts of construction work done for themselves or by them, but this activity is not their primary activity and the business does not have to report according to CPRS. For example, a natural gas company may perform major construction work to install pipelines. Its main activity is the transportation of gas, not the construction of pipelines. Reporting would not be required under CPRS; However, if it so wishes, the credit rating agency shall accept the information. The accuracy of what you report is checked during the usual audits. Feedback from this activity will help you meet the reporting requirements. Download a printable version of Form 39-1 by clicking on the link below, or browse other documents and templates provided by the New York City Department of Parks and Recreation. .
