T1204 slip – Government services contract payments
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What is a T1204 slip
Sample
A T1204 slip identifies the total contract payments a federal department or agency, or Crown corporation, made during a calendar year for services and/or payments for products, expenses, or reimbursements.
You can get a Form T1204 in a PDF or PDF fillable/saveable format to file on paper.
When to issue
If you are a federal department, agency, or a Crown corporation, you must issue a T1204 slip if all of the following apply:
- Payments were made to Canadian resident contractors for services performed inside or outside Canada
- Total of all payments in the calendar year were more than $500, not including GST/HST (payments made for goods only do not have to be reported)
What to report
What to report and not report on a T1204
Report
- Payments to contractors who are residents of Canada for services provided inside or outside Canada
- Amounts are reported on a T1204 slip for the year in which it is paid
- Amounts paid or credited, whether by cheque, cash, barter, or offset against an amount owing
Do not report
- Payments to contractors who are non-residents of Canada for services provided inside or outside Canada, use: T4A-NR slip
- Payments made for goods only
- Rental or leasing of office space or equipment
- Direct purchases made using acquisition cards
- Direct purchases made under local purchase
- Utility payments
What are the guidelines for filling out slips
Do
- If you have multiple payroll accounts, file a separate T1204 return for each payroll account based on the account that the payments were made from
- Report, in dollars and cents, all amounts you paid during the year
- Report all amounts in Canadian dollars, even if they were paid in another currency. Learn more about the average exchange rates: Exchange rates
Do not
- Do not show negative dollar amounts on slips, to make changes to previous years. Learn more: Make corrections after filing
- If a box does not have a value, do not enter "nil" or "N/A", leave the box blank
- Do not change the headings of any of the boxes
- Do not enter hyphens or dashes between numbers
- Do not enter the dollar sign ($)
How to fill out
Year
Enter the 4 digits of the calendar year in which you made the payment to the recipient.
Box 23 – Recipient type
Enter the appropriate code from the following list:
| Recipient code | Type of recipient |
|---|---|
| 1 | Sole proprietor (RT) |
| 3 | Corporation (RC) |
| 4 | Partnership |
Box 82 – Service payments only
Report the total amount of payments you made for services (including reimbursements) during the calendar year.
Do not report this amount in box 84.
Do not include GST/HST or PST in the amount reported in box 82.
Under the CRA's administrative policy, a slip must be issued if the total of all payments in the calendar year were more than $500 (do not include GST/HST).
Learn more: Payments of fees for services.
Box 84 – Mixed services and goods payments
Report the total amount of payments you made related to the provision of mixed goods and services (including reimbursements) where there is an identifiable service component whether or not the goods were purchased outright, leased or rented.
Do not include service payments that you reported in box 82.
Do not include GST/HST or PST in the amount reported in box 84.
Types of payment that are exempt
The following types of payment are exempt from this reporting requirement:
- Rental or leasing of office space or equipment
- Direct purchases made using acquisition cards
- Direct purchases made under local purchase
- Utility payments
Box 12 – Sole proprietor's social insurance number
If the recipient is an unincorporated entity, enter the recipient's social insurance number.
Box 61 – Recipient's business account number
If the recipient is an incorporated entity, enter the 15-character business number (for example, 123456789RC0001) that the recipient would use when filing their own tax returns.
Box 86 – Partnership's account number
Enter the partnership's business number or GST/HST number and the partnership filer identification number, if the contractor has one.
Recipient's business name and address
Enter the name under which the recipient carries on the business (the name as it appears on invoices or on cheques the payer submitted or paid to the contractor).
This name must be the one associated with the social insurance number or business number.
If the recipient is a sole proprietor, the recipient's last name, first name, and initial must also be shown.
Enter the recipient's business address.
Payer's name
Enter your business or individual name.
Payer's program account number
Enter your 15-character account number (for example, 123456789RT0001) on your copy and the copy you send to the CRA only.
Do not enter your account number on the copies you give to the contractors.
For sole proprietor only
If the recipient is an unincorporated entity, enter the last name, first name and initial.
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