Accounting for excavation contractors in Ontario
Excavation contractors run heavy equipment, subcontractors, and project billings, with major capital costs and T5018 reporting.
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taxifi · Excavation Contractors
This month
- Bookkeeping Current
- Payroll & source deductions Filed
- HST Filed
- Year-end tax (T2) On track
The problems we take off your plate
Heavy equipment at year-end
Financed machines are major capital costs; they're tracked and claimed over time through capital cost allowance.
T5018 subcontractor reporting
Every sub payment is tracked and the T5018 slips prepared and filed on time.
Project billing and job costing
Costs are organized by project so you can see margin per job, not just a year-end total.
What’s included
Published prices for incorporated Ontario excavation contractors. Everything below is handled.
- Project bookkeeping and job costing
- T5018 subcontractor slips prepared and filed
- Heavy equipment tracked for capital cost allowance
- Crew payroll and WSIB-ready records
- Year-end corporate tax (T2), from $1,000 a year
| Area | A typical setup | With taxifi |
|---|---|---|
| Your books | Weeks or months behind | Current every day |
| Year-end (T2) | A spring scramble, billed extra | Included, no surprise invoice |
| Your accountant | Metered by the hour | Unlimited questions, flat monthly |
T5018s and holdbacks: the two things excavation books get wrong
If construction is your primary activity, payments to subcontractors for construction services generally get reported on T5018 slips — and unlike T4A rules, T5018 reporting applies whether or not the subcontractor is incorporated. That single difference catches contractors who assumed incorporated subs were outside the requirement.
Holdbacks are the second timing issue. Ontario's Construction Act requires a holdback on construction contracts, and holdback amounts have their own timing for HST purposes — tax on a holdback is generally not due until the holdback becomes payable, not when the progress invoice is issued. Books that track holdbacks separately keep that timing right by default; books that do not either remit early or fall behind.
Common questions
Do you file T5018s for my subs?
Yes. Subcontractor payments are tracked and reported as CRA expects.
Can you handle my equipment financing?
Yes. Equipment is tracked and claimed over time through capital cost allowance.
Do I file T5018 slips for incorporated subcontractors?
Generally yes. If construction is your primary business activity, payments to subcontractors for construction services are reported on T5018 slips regardless of whether the sub is incorporated — the opposite of the T4A rule. T5018 returns are due six months after the end of the reporting period you choose.
When is HST due on a construction holdback?
Generally when the holdback becomes payable rather than when you first invoice the progress billing. Contractors who remit on the full invoice amount pay tax before they are required to; contractors who ignore holdbacks entirely fall behind later. Tracking holdbacks as their own line keeps the timing correct.
Books and taxes for your excavation contractor, done
Bookkeeping from $99 a month, accountant-reviewed from $299, corporate T2 from $1,000 a year. Prices are published; a call confirms the fit.
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