What’s the difference between a T4 and a T4A?
A T4 reports employment income with source deductions; a T4A reports other income — most commonly contractor fees paid to unincorporated workers.
The T4 is the employee slip: salary and wages, with the income tax, CPP, and EI you withheld. The T4A covers “other income” — for small businesses, most often fees paid to self-employed contractors, plus things like certain benefits.
Why the line matters more than the slip
The slip follows the relationship. If CRA decides your “contractor” was really an employee — based on control, tools, financial risk, and integration — you can owe the source deductions you never withheld, plus penalties. The slip choice is the paperwork; the classification is the risk.
Deadlines
Both are due to CRA and to the worker by the last day of February for the previous calendar year. Construction businesses reporting subcontractor payments use the T5018 instead, on its own schedule.
What good books do here
Track worker payments correctly all year — payroll for employees, contractor ledger for T4A recipients — and slip season is an export, not an investigation.
This is general information, not tax advice for your situation. Book a call and a Canadian accountant will give you the answer for your business.
Common questions
Do I need to issue a T4A to an incorporated contractor?
Generally no — T4As for fees target unincorporated self-employed individuals, and payments to corporations are typically outside the requirement. Construction subcontractor payments use the T5018 regardless. Confirm your specific cases with your accountant.
What if I paid someone partly as an employee and partly as a contractor?
It happens — a real employment period plus a genuine contracting arrangement can each be reported on the matching slip. But if it is one continuous relationship dressed two ways, that is a classification problem, not a paperwork choice.