Preparing for T4A Filing with Wingspan

1. Introduction

This guide is for Canadian businesses that use Wingspan to pay Canadian contractors and need to file T4A slips with the Canada Revenue Agency (CRA). While Wingspan generates and delivers both T4A PDFs to your contractors and XML files formatted for CRA submission, payers remain responsible for reviewing contractor information, uploading XML transmissions on the CRA website, verifying completeness, and meeting CRA deadlines. This document highlights the essentials to ensure compliance and accuracy when preparing T4As.

1.1 What Is a T4A Slip?

A T4A slip is a Canadian tax form used to report various income types, including “Fees for Services” under Box 048. As a Canadian business payer, you must issue T4A slips if you paid a contractor at least $500 CAD in the calendar year for services. You must also submit a corresponding T4A Summary (or XML return) to the CRA.

2. Key CRA Requirements and Deadlines

$500 CAD Threshold: A T4A slip is required for each contractor if you paid them $500 CAD or more for services during the tax year. Filing slips for amounts below this threshold is optional.
Filing Deadline: End of February: All T4A slips and summaries for the prior calendar year must reach the CRA—and be provided to contractors—on or before the last day of February of the following year. If the deadline falls on a weekend or holiday, it moves to the next business day.
Potential Penalties: Late filing may result in penalties starting at $100 and increasing based on the number of slips and days overdue.

3. Contractor Information in Wingspan

Wingspan automatically collects and manages contractor data (payments, email, address, and tax details). Before filing, review contractor details to verify that each contractor’s legal name, SIN/BN, and contact information are complete and accurate. If any contractor’s information is incomplete, prompt them to complete their onboarding or resend the invite.

4. Payer Information You Need Before Filing

Business Number (BN): A valid 15-character number (e.g., 123456789RP0001) used for remittances and T4A summaries; must match CRA records.
Payer Contact Information: Include your name, phone number, and business mailing address to appear on the T4A summary for CRA reference.

5. Fees for Services (Box 048)

Wingspan currently supports reporting only for “Fees for Services” in Box 048. For contractors who meet the $500 CAD threshold, the total fees paid (excluding taxes and reimbursements) are reported in this box. If you need to report other income types or boxes, alternate reporting methods are required.

6. The T4A Filing Process with Wingspan

Draft Spreadsheet Generation: Wingspan generates a draft T4A spreadsheet that includes all eligible contractors and an itemized list of payments; this draft will be delivered on February 14, 2025.
Review and Reconciliation: You review the spreadsheet to verify that all eligible contractors are included and that the payment breakdown is accurate; any necessary adjustments should be finalized by February 17, 2025.
XML Conversion and Upload: Once the draft is approved, Wingspan converts the spreadsheet into a CRA-compliant XML file; you then download the XML and upload it via the CRA’s portal on February 21, 2025, after which PDF copies of the T4A slips are distributed electronically to your contractors.

7. Filing with the CRA

Download the XML from Wingspan.
CRA Access: You must have access to the CRA’s “File Information Returns Electronically” portal. This requires your business number and a valid web access code.
Upload the XML File via the CRA portal before the end-of-February deadline.
Verify and Distribute: Ensure that contractors receive their T4A PDF slips via email and through their Wingspan account.

8. Correcting Mistakes After Filing

If errors (such as incorrect amounts or typographical issues) are discovered after filing, notify affected contractors and log in to your CRA account (e.g., via My Business Account) to amend the T4A slip directly through the CRA interface. Note that Wingspan does not support corrected or amended T4As.

9. Additional Resources

For broader T4A filing information, refer to the CRA’s official T4A webpage.

10. Disclaimers

Wingspan generates T4A slips based on the data provided by you or your contractors; you are responsible for verifying all amounts, addresses, and SIN/BN information to ensure accuracy and timely submission. Wingspan supports only fees for services under Box 048; reporting for other types of income must be handled through alternate methods.

11. Unsupported Items

Provincial Filings (e.g., RL-1).
Additional T4A Boxes beyond Box 048.
Tax Withholding (no deductions or remittances).
GST/HST Reporting or remittances.
Non-Resident Contractors (T4A-NR not supported).
Specialized Payment Types (e.g., pensions, scholarships, trust payments, etc.).
Mid-Year Reporting or off-cycle T4A issuance.
Paper Filing (only electronic is supported).
Corrected/Amended T4As (not currently supported).