buksoPaying contractors (T4A and 1099)
Not tax advice. General bookkeeping information only, checked against the official sources linked below (Canada Revenue Agency, IRS, provincial governments and Justice Laws) on Oct 17, 2026. Rules change; check with your accountant before you file.
Canada
Payments to subcontractors are deductible. Some industries (for example construction) must report them to CRA on a T5018 slip.
Official source: canada.ca
United States
Payments to contractors are deductible. If you pay a non-employee $2,000 or more in a calendar year (payments from 2026 on; it was $600 before), you usually file Form 1099-NEC, so get a W-9 first.
Official source: irs.gov