Reporting fees for services

Did your business pay fees to another business for services?

If so, here’s what you need to know. Reporting fees for service (RFS) is the legislated requirement for businesses and organizations to report fees paid to other businesses for services provided. Total payments that exceed $500 in a calendar year must be reported to the Canada Revenue Agency (CRA) in prescribed form, usually the T4A slip.

Why the RFS requirement matters:

• Provides third-party reporting information to verify income and expenses reported by businesses and organizations.
• Promotes a level playing field by ensuring that all businesses and organizations follow the same reporting standards and meet their tax obligations.

How to report payments of fees for services:

• Open a CRA payroll account, if one is not already set up.
• Fill out the T4A slip: Enter the total fees for services you paid in the calendar year in box 048.
• Issue slips to recipients by the last day of February of the following calendar year.
• Prepare a T4A summary including the total number of T4A slips issued and the amounts reported on them for the tax year.
• File both T4A slips and summary with the CRA by the due date.

Businesses in the trucking industry

Starting with the 2025 tax year, trucking businesses who fail to report fees for service transactions can face penalties and subsequent compliance actions, including the potential disallowance of claimed expenses.

If your primary source of income (over 50% of income-earning activities) comes from trucking activities, you must report payments of fees for services exceeding $500 in a calendar year made to a Canadian controlled private corporation (CCPC) in the trucking industry.

Learn more about tax obligations for businesses operating in the trucking industry: canada.ca/trucking-taxes.

Find more information on the RFS requirement: canada.ca/reporting-fees-service.