As tax compliance in Canada evolves, the Canada Revenue Agency (CRA) continues to emphasise accurate and timely T4A reporting. Recent developments — particularly the potential conclusion of the longstanding administrative moratorium on Box 048 penalties — signal a shift that tax professionals, HR teams, and employers need to prepare for. This update outlines the essential elements of T4A reporting and its broader implications, especially in the context of global mobility.
The T4A, Statement of Pension, Retirement, Annuity, and Other Income, is a CRA-issued slip used to report various forms of non-employment income. Commonly, it’s issued for:
T4A slips must be filed by February 28 of the year following the calendar year of payment. For example, payments made in 2025 must be reported by February 28, 2026.
The information required includes:
Since 2011, the CRA has maintained a moratorium on penalties for missing or incomplete Box 048 entries (fees for services), while consulting with stakeholders. This moratorium is temporary. With the consultation period ending, policy enforcement may soon follow. Payers should act as though compliance is already mandatory.
International employers with Canadian resident workers must pay close attention. Payments to globally mobile employees — often made outside regular payroll — may qualify as service fees requiring T4A reporting under Box 048.
For more information, please consult your regular BDO contact or the authors of this article.
Debra Moses
Weijia Wang
BDO in Canada
What Is the T4A Slip?
The T4A, Statement of Pension, Retirement, Annuity, and Other Income, is a CRA-issued slip used to report various forms of non-employment income. Commonly, it’s issued for:
- Independent contractor or consultant payments
- Professional or business service fees
- Commissions
- Research grants
- Certain pensions and annuities
Filing Requirements
T4A slips must be filed by February 28 of the year following the calendar year of payment. For example, payments made in 2025 must be reported by February 28, 2026.The information required includes:
- The recipient’s full name and Social Insurance Number
- The payer’s business number and contact information
- The total amount paid and the type of payment
- Box 048 for “fees for services” (if applicable)
Threshold for Reporting
A T4A must be issued if any tax is withheld, or if the total annual payments exceed $500, even if no tax was withheld.
CRA Administrative Policy: Box 048
Since 2011, the CRA has maintained a moratorium on penalties for missing or incomplete Box 048 entries (fees for services), while consulting with stakeholders. This moratorium is temporary. With the consultation period ending, policy enforcement may soon follow. Payers should act as though compliance is already mandatory.
Implications for Global Mobility and Cross-Border Workers
International employers with Canadian resident workers must pay close attention. Payments to globally mobile employees — often made outside regular payroll — may qualify as service fees requiring T4A reporting under Box 048.
Action Needed
- Review record-keeping processes
- Consult cross-border tax professionals
- Monitor CRA communications for upcoming enforcement changes
Key Takeaways
- T4As are critical for capturing and reporting non-employment income.
- The current Box 048 moratorium is not a permanent exemption — enforcement may resume.
- Global mobility teams should prepare for stricter compliance, especially with cross-border compensation arrangements.
- Maintain robust documentation, stay informed regarding CRA updates, and consult tax advisors to manage risk effectively.
How BDO Can Help
BDO offers proactive guidance on CRA policy changes and practical support for T4A compliance. Our tax professionals assist organisations with T4A issuance strategy and reporting, global mobility compliance; CRA audit readiness and response; and record-keeping frameworks.For more information, please consult your regular BDO contact or the authors of this article.
Debra Moses
Weijia Wang
BDO in Canada