What is the Canadian Equivalent to US 1099?

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What is the Canadian Equivalent to US 1099?

Post by webcite_99 »

Question: Canadian resident working in Canada for Canadian company as an independant contractor. Is there an equivalent form to the US 1099 and at what dollar amount per year must the Canadian corp issue (i.e. it is $600/yr in for the US).

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Post by nelsona »

None that I know of.
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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Post by baby_king_bob »

Technically, the payments described would fall under T4A reporting. The threshold amount for T4A reporting is (I believe) $500 in the calendar year.

Most businesses do not file T4A's for payments to independent contractors and, in my experience, I've never seen a business penalized for non-compliance. For years there's been high-level discussion at the Revenue Agency about enforcing T4A filings to eliminate some of the underground economy, but nothing has ever come of this. I suspect it's because they recognize the administrative nightmare this would open (i.e. where do you draw the line? does Joe Schmoe issue a T4A to his plumber?).

Speaking of underground economies, I should note that the construction industry has it's own set of filing requirements for certain contract payments (the T5018).
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