If you are working on a job site for a general contractor you are required to report your earnings on your personal tax return. This includes reporting of any cash payments made to you.
If you are not an employee of the contractor, then you are required to invoice the general contractor to receive payment.
You will need to provide the general contractor with your social insurance number if you are making under $30,000 per calendar year. You will need to provide your GST/HST registration number if you are making over $30,000 per year.
What goes on the invoice?
Include your name, address, phone# and GST/HST if you are registered. Here is an example of the body section of an invoice:
| Qty | Description | Hourly Rate | Amount | |
| 75 | Joe Smith June 6th to Jun 19 – Granville Street | 25.00 | 1,875.00 | |
| 80 | Jack Brown June 6th to Jun 19 – Hastings Street | 20.00 | 1,600.00 | |
| GST@5.0% Total tax 173.75 | ||||
| GST/HST No. ######### | Total $3,648.75 | |||
Why you need to report your cash earnings
- You will be able to make contributions into the Canada Pension Plan, to receive a pension or disability pension
- If the contractor is audited, all income has been reported to the Canada Revenue Agency on your tax return.
- You will avoid any penalties if you are working as a sub-contractor
Need help setting up your bookkeeping systems?
Learn more about our bookkeeping services: Bookkeeping Services
Or contact Ina for a free consultation.