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November 30, 2022
Question

Reporting payment to subcontractor

  • November 30, 2022
  • 1 reply
  • 0 views

Hello,

 

I am self employed (business management consultancy). 

How do I report payments made to  subcontractors (non Canadian individuals) who performed work outside of Canada?

What is the amount of payment that can be paid to a subcontractor without the need to fill out any form? 

All I could find was T5018 , but it seems it is only for construction subcontractors. 

I appreciate any help!

    1 reply

    December 2, 2022

    Choose “Self-Employment Summary” from under “Self-Employment” in the “Income” tab. Click “Edit” next to your business and then click on “Income and inventory”. Click on “Skip Income” to go to the “Inventory” section.

    There you can put your amounts paid for sub-contractors in the space for “Did you hire any Subcontracts?”. Even though the description only mentions goods, it applies to services as well. If you use the “Salaries, Wages and Benefits” spot under Business Expenses, the CRA will expect you to have run a proper payroll (EI, CPP, issued slips, etc…).

    Thank you for choosing TurboTax.