Before Paying a Calgary Subcontractor: Assemble the Supporting File

Create one record for the supplier relationship

Start with the legal supplier name, agreed scope, contract reference, rates and the manager responsible for approval. Retain tax information and relevant coverage documents. Bank-detail changes should be checked independently using a trusted contact rather than accepted solely from an emailed attachment.

WCB-Alberta recommends obtaining a clearance before hiring and before releasing payment. The letter helps establish coverage and account standing; missing coverage or unpaid premiums can create responsibilities for the hiring business. Keep the dated evidence with the contract and follow up on exceptions.

Illustrative example: a duplicated site-visit cost

A Calgary energy consultancy receives an invoice for $4,800 of professional time plus a $420 hotel charge. The project manager recalls that the company card was used to guarantee the booking. Reviewing the receipt and card statement confirms the room was already paid by the consultancy.

A corrected supplier invoice removes the duplicated $420. The file retains both versions, the explanation and approval of the revised amount. The cost still belongs in the project record through the original card transaction; removing the duplicate should not remove the legitimate expense as well.

Use a short approval checklist

Confirm the work or deliverable, correct job code, agreed rate, supporting expense evidence and approved changes. Compare the invoice against earlier invoices and staff reimbursement claims. Where client reimbursement is expected, identify whether the customer has approved the cost and any contractual cap.

A payment list can distinguish ready items from missing records and disputed amounts. The authorized manager decides whether the work is acceptable and whether a commercial issue is resolved. The bookkeeper preserves that decision and prepares the entries or payment information within the agreed scope.

Keep different classifications separate

A WCB clearance does not by itself establish self-employment for tax or settle every employment-standard issue. The actual relationship and work performed may need separate review. Equally, labelling a person a consultant in the accounting file does not answer the coverage question.

At month end, reconcile payments to supplier balances and confirm that outstanding credits are applied. A complete file makes it easier to respond to the contractor, project manager or accountant without searching through separate email chains for the reason a payment changed.

Put this into practice

• Contractor expense controls →
• Trades businesses →
• Bookkeeping workload tools →