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Gondaliya CPA

Corporate Tax Filing Experts

Accountant for Masonry Contractors in Ontario and Across Canada

We carry the Construction Act 10% holdback on your commercial and builder jobs as a receivable until substantial performance is certified, apply percentage-of-completion work-in-progress and progress billings on your multi-week jobs, value your brick, block, stone, mortar, sand and cement as inventory, keep your new-build masonry and your restoration and repointing work on separate revenue streams, file your T5018 subcontractor slips, put your service trucks, forklift, mixers and scaffolding in the right CCA class, and plan the tax on your company. Whether you run a residential brick and block mason, a commercial masonry contractor, a stone masonry and restoration company, or a heritage repointing and tuckpointing specialist, we handle the holdback, WIP and materials-inventory accounting, the HST on masonry with full input tax credits, the seasonal crew payroll with WSIB and the bricklayer apprenticeship credit, and plan the salary, dividends and eventual sale of your company — with AFFORDABLE flat fees.

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AFFORDABLE Masonry Contractor Accountant

A masonry contractor is a construction trade whose accounting turns on holdbacks, work-in-progress and materials. Your commercial and builder jobs are subject to the Ontario Construction Act 10% holdback, a receivable that is not revenue until it is released on substantial performance, and multi-week jobs carry percentage-of-completion work-in-progress and progress billings. Your brick, block, stone, mortar, sand and cement are inventory valued under section 10 of the Income Tax Act, bought by the load and drawn down against jobs, and your service trucks, forklift, mixers, scaffolding and small tools all have to be costed and classed. That is why you need a masonry contractor accountant who knows the trade. At Gondaliya CPA, we specialize in holdback, work-in-progress and materials-inventory bookkeeping and corporate tax planning for masonry companies, providing AFFORDABLE flat-fee support that keeps you CRA-compliant and stops you paying more tax than you owe.

As a brick, block, stone and restoration accountant, we work with residential brick and block masons, commercial masonry contractors, stone masonry and restoration companies, and heritage repointing and tuckpointing specialists across Ontario, with year-round support rather than a once-a-year scramble. We tell you plainly what you can deduct, what you cannot, and where the real profit sits on each new-build job and each restoration contract.

Let us handle the numbers so you can focus on the work that actually pays you.

Gondaliya CPA team - accounting and tax services for masonry contractors

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Accounting That Understands How a Masonry Contractor Actually Works

Running a masonry company comes with financial pressures a desk-bound business never faces. Your commercial jobs hold back 10% under the Construction Act until they are certified, your multi-week jobs carry work-in-progress, you buy brick, block and stone by the load and carry it as inventory, and you run a fleet of trucks, a forklift, scaffolding and a crew of masons that all have to be costed and classed. At Gondaliya CPA, we understand the financial reality of a masonry company and provide practical, trade-focused solutions across the GTA and all of Ontario.

💰

Holdback & WIP

Your commercial jobs hold back 10% under the Construction Act until certified, and multi-week jobs carry percentage-of-completion work-in-progress, not early revenue.

💵

HST on Masonry

Both your new-build masonry and your restoration and repointing work are taxable at 13%, and the input tax credits on materials, trucks and tools are yours to claim back.

📈

Materials & T5018

Your brick, block, stone, mortar and cement are section 10 inventory, and you file T5018 slips on the subcontractors you pay.

🛡

Equipment, Crews & Cash

Your trucks, forklift, mixers and scaffolding depreciate by CCA class, your masons run on payroll, and CRA watches cash jobs closely.

Stay Compliant and Minimize Your Masonry Company Tax

For a masonry company, staying onside with CRA and WSIB and paying the least legal tax are the same job. We keep every filing on schedule while claiming every materials, truck and equipment dollar the T2 allows, so nothing is missed and nothing invites a reassessment.

📋

HST, WSIB & the Construction Act

Both your new-build masonry and your restoration and repointing work are taxable at 13% HST, so there is no exempt line to hide behind, and WSIB registration and premiums in the construction rate group are mandatory on your mason wages from the first day you hire. On commercial and builder work, Ontario’s Construction Act requires a 10% holdback that is not collectible until substantial performance is certified and released, so it is a receivable rather than revenue. Getting HST, WSIB and holdback documentation right protects the company from reassessment and from disputes over progress billings.

CRA Obligations for Masonry Contractors

Staying compliant with CRA means more than one return a year. We manage HST on new-build and restoration work, brick, block and stone inventory under section 10, the Construction Act holdback and work-in-progress, T5018 subcontractor slips, payroll source deductions on the PD7A remittance, and the Apprenticeship Job Creation Tax Credit (AJCTC) on Schedule 31. By monitoring the areas CRA reviews most often on cash-intensive trade files, we reduce your audit exposure and keep your corporation financially sound.

📈

Year-End Deliverables for Masonry Contractors

At year-end, a masonry corporation needs a proper trial balance and financial statements that carry brick, block and stone inventory, the Construction Act holdback receivable, progress-billing and retention receivables, work-in-progress on open jobs, service trucks, forklift and scaffolding, plus a T2 with GIFI that ties to your HST returns. Where a lender is involved, you also need CPA-compiled financial statements for equipment financing. Our team prepares every deliverable on time and in compliance, so your file is audit-ready and financing-ready.

Accounting & Tax Experts for Masonry Contractors

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Why Choose Our Accounting Services for Masonry Contractors?

1
🎯

Tax Planning — Equipment & Fleet Expertise

We know the trade: forklifts in Class 38 at 30%, service trucks in Class 10 at 30%, mixers and scaffolding in Class 8 at 20%, small tools under $500 in Class 12 at 100%. We claim the apprenticeship credit on Schedule 31 and protect the $500,000 Small Business Deduction.

2
💳

Consulting — Holdback, WIP & Materials Bookkeeping

Our bookkeeping carries the Construction Act holdback as a receivable, applies percentage-of-completion work-in-progress on multi-week jobs, and values your brick, block and stone inventory under section 10. We job-cost each job so you see the real margin and tie HST to revenue.

3
🛡

CRA Representation — Cash-Job & Inventory Audit

When CRA reviews your cash jobs, your materials inventory, or your HST on new-build and restoration work, we prepare the response, reconcile WSIB, and pursue relief on Form RC4288 where penalties came from a prior error.

4
🏢

Bookkeeping — Payroll, Credit & Sale

We run your mason and apprentice payroll with WSIB, capture the bricklayer apprenticeship credit, and get you ready to sell. We model the profit level where incorporating pays off and handle the eventual disposition of your company.

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Masonry Contractor Tax and Accounting Services in Ontario

📄

Corporate Tax Filing (T2) for Masonry Contractors

Professional T2 preparation with Schedule 8 CCA on your service trucks, forklift, mixers and scaffolding, brick, block and stone inventory and the Construction Act holdback, and CRA compliance on every line.

💳

Bookkeeping & Accounting for Masonry Contractors

Holdback, work-in-progress and materials-inventory bookkeeping with financial statements, clean records, and monthly reporting built for a masonry company.

💵

Payroll Services for Masonry Contractors

Mason and labourer payroll with WSIB in the construction rate group, PD7A remittances, T4s, T5018 slips, and apprentice-wage tracking for the credit.

🧾

GST/HST Filing for Masonry Contractors

AFFORDABLE HST filing on new-build and restoration work with full input tax credits on brick, block, cement, scaffolding and tools, matched to your T2 to avoid CRA penalties.

📈

Tax Planning for Masonry Contractors

Smart tax planning to protect the Small Business Deduction, claim the apprenticeship credit, time forklift and equipment purchases, and plan salary, dividends and sale.

Corporate Catch-Up Filing for Masonry Contractors

File overdue T2 and HST years, rebuild missing job, materials and holdback records, and get back into CRA compliance with accurate catch-up support.

🛡

CRA Audit Resolution for Masonry Contractors

Expert support for cash-job, materials-inventory, holdback and HST audits, with indirect-verification-of-income reviews handled with confidence.

📊

CPA Financial Statements (Notice to Reader) for Masonry Contractors

CPA-compiled financial statements that equipment lenders and banks accept for your masonry corporation.

🏢

Incorporation Services for Masonry Contractors

Full incorporation including NUANS, articles, share structure, and the section 85 rollover from your unincorporated masonry business.

📒

Catch-Up Bookkeeping Services for Masonry Contractors

Rebuild months of missing masonry books from bank, supplier and Knowify records, restore holdback, work-in-progress and brick, block and stone inventory, and recover unclaimed HST input tax credits.

🌐

US Corporation & LLC Tax Filing for Masonry Contractors

Cross-border filing for masonry contractors working in the US, coordinating Forms 1120, 1120-F and 5472 with your Canadian T2 so the same job income is never taxed twice.

📜

Voluntary Disclosure Program for Masonry Contractors

Come forward on unreported cash jobs, missed T5018 slips or unfiled HST through the CRA Voluntary Disclosures Program on Form RC199, cancelling penalties before CRA contacts your masonry company.

Accounting & Tax Services Tailored for Masonry Contractors

Real, practitioner-level CPA expertise for residential brick and block masons, commercial masonry contractors, stone masonry and restoration companies, and heritage repointing specialists across Ontario — built for how a masonry company actually runs.

  • We prepare your T2 with GIFI on Schedule 100 and Schedule 125, splitting new-build masonry revenue from restoration and repointing work on their correct lines, so CRA’s automated matching never bills tax on a $600,000 file it misreads.
  • We claim capital cost allowance on Schedule 8 with your service trucks in CCA Class 10 at 30% and your forklift in Class 38 at 30%, so a $55,000 boom truck and forklift are never stranded in the wrong pool at year-end.
  • We place your mixers and scaffolding in Class 8 at 20% and small tools under $500 in Class 12 at 100%, so a $9,000 scaffold system and a mortar mixer are written off at the correct rate instead of the wrong one.
  • We carry the Ontario Construction Act 10% holdback as a receivable, not revenue, until substantial performance is certified, so a $70,000 holdback on a commercial brick job is never taxed before it is actually released.
  • We value your brick, block, stone, mortar, sand and cement as inventory under section 10 of the Income Tax Act at the lower of cost or net realizable value, so a $40,000 stone and block load is not expensed before it is laid.
  • We sync Knowify, Buildertrend or Jobber to QuickBooks Online so every masonry job posts labour, materials and equipment to the right account, giving the real margin per job and the six years of records section 230 requires.
  • We track your brick, block, stone and mortar inventory in QuickBooks or Xero and reconcile it to a physical count at year-end, so cost of materials on your T2 reflects only what you laid, not $22,000 of stock still on skids in the yard.
  • We carry the Construction Act 10% holdback and percentage-of-completion work-in-progress on your multi-week jobs, because booking a $90,000 progress billing straight to income overstates profit before the wall is finished and certified.
  • We capture every supplier invoice through Dext and reconcile monthly, so the 13% HST input tax credit on brick, block, cement, scaffolding and fuel is never lost to a missing ticket and you recover credits most companies leave unclaimed.
  • We separate new-build masonry revenue from higher-margin restoration and repointing work in your chart of accounts, so you see which stream carries the margin; on one company this revealed $28,000 of repointing billed below cost.
  • We set up mason and labourer payroll in Wagepoint, withholding income tax, CPP and EI and remitting on the PD7A by the 15th of the following month, so a busy spring never eats CRA’s 10% late-remittance penalty on source deductions.
  • We register and reconcile your WSIB coverage in the construction rate group, which is mandatory, and file premiums on assessable wages, so an unregistered company avoids retroactive premiums and penalties on a 2-year lookback that can reach five figures.
  • We settle the RC4110 employee-versus-contractor question on your bricklayers and labourers, because misclassifying a $50,000 seasonal mason as a subcontractor exposes you to back CPP, EI and penalties when CRA reviews the working relationship.
  • We prepare and file T5018 Contract Payment Reporting slips for the subcontractors on your masonry jobs, avoiding the $100-per-slip penalty CRA applies to late or missing filings and keeping your subcontractor costs defensible on review.
  • We track apprentice wages separately so your registered bricklayer and mason apprentices earn the Apprenticeship Job Creation Tax Credit on Schedule 31, worth 10% of eligible wages up to $2,000 each; on one two-apprentice crew we captured $4,000.
  • Both your new-build masonry and your restoration and repointing work are taxable at 13% HST, so we set the right code on every invoice, because there is no exempt line and CRA will assess the tax you should have collected.
  • You must register once taxable revenue passes the $30,000 small-supplier threshold across four consecutive quarters, and we track the exact quarter you cross so CRA cannot assess back-tax on masonry work where you never charged HST.
  • We claim the input tax credits your brick, block, cement, scaffolding, trucks and tools carry, recovering the 13% HST on line 108 — on one company we recovered $11,800 of ITCs on a $90,000 materials and forklift purchase.
  • We handle the HST timing on progress billings and retention so the 13% is reported under the rules and reconciled against when the work is earned, and your remittance lines up with the revenue you recognize on each $80,000 masonry contract.
  • We reconcile the HST on your returns to the revenue on your T2 every filing period, because CRA’s matching program compares the two and a company whose figures disagree by even $5,000 is among the fastest files pulled for a costly audit.
  • We set the salary-versus-dividend mix for the owners, paying enough T4 salary to build RRSP room while the balance flows as dividends, so combined tax stays near the 12.2% Ontario small-business rate; on one owner this deferred $26,000 of tax.
  • We keep your active income under the $500,000 Small Business Deduction limit using section 125, and we watch CRA’s associated-corporation and passive-income rules that grind the limit toward the higher general corporate rate.
  • We claim the Apprenticeship Job Creation Tax Credit on Schedule 31 for your registered bricklayer and mason apprentices, worth 10% of eligible wages up to $2,000 each, so training your crew reduces tax instead of forfeiting the credit.
  • We time your forklift, mixer and truck purchases before your fiscal year-end so the half-year rule and the 30% Class 38, 30% Class 10 and 20% Class 8 rates give the largest first-year deduction against a profitable build season.
  • We plan at least two years ahead so your shares qualify for the $1.25M Lifetime Capital Gains Exemption, purifying the company of non-active assets so selling your masonry business defers tax CRA would otherwise collect on the gain.
  • We reconstruct masonry job revenue and job costs from bank deposits, merchant statements and your Knowify or Jobber data across your unfiled years, rebuilding the six years of records section 230 requires so CRA cannot arbitrarily assess your company.
  • Late filing costs 5% of the balance owing plus 1% per month up to twelve months, so we file your oldest unfiled T2 first to stop the penalty compounding and limit the arrears interest CRA charges your corporation.
  • We file the missing HST returns and reconcile the 13% you charged on new-build and restoration work against what you actually remitted, so tax you collected is accounted for and CRA cannot assess back tax with interest on the gap.
  • We rebuild the undepreciated capital cost pools across the unfiled years so missed CCA on Class 38 forklifts, Class 10 trucks and Class 8 scaffolding is recovered; on one file this restored $8,900 of depreciation CRA would otherwise have kept.
  • We file a Voluntary Disclosures Program application on Form RC199 before CRA contacts you, because a disclosure accepted under the general program cancels penalties in full and gives 50% interest relief on the older years.
  • When CRA opens an audit, we manage the whole file and answer the holdback, materials-inventory and HST queries inside the deadlines, so a review of one year does not expand into a reassessment of the 3 prior years CRA can reopen.
  • When CRA runs indirect verification of income on a cash-heavy company, comparing bank deposits and lifestyle to reported masonry revenue, we prepare the source-and-application-of-funds reconciliation within the 30-day deadline.
  • We defend your holdback position when CRA challenges the timing, showing the Construction Act 10% is not revenue until released; on one company we moved $70,000 of holdback out of premature revenue, reversing an early assessment.
  • We answer materials-inventory and cost-of-goods reviews with the section 10 lower-of-cost-or-NRV valuation, physical counts and supplier invoices, because a deduction disallowed for missing records cannot be restored later at objection.
  • We file the Notice of Objection within 90 days of a reassessment and pursue taxpayer relief on Form RC4288 where a prior accountant’s error caused the penalties — protecting your right to the Tax Court and interest you should not carry.
  • We prepare the CSRS 4200 compilation engagement financial statements, the Notice to Reader an equipment lender and a bank require across two fiscal years before they approve the roughly $90,000 financing on a forklift and boom truck you need.
  • Your compiled statement of financial position presents brick, block and stone inventory, progress-billing and retention receivables and the Construction Act holdback at net book value, giving a lender the working-capital picture a bare T2 cannot.
  • We build the statement of operations with new-build revenue, restoration revenue and cost of materials classified consistently across two years and tied to the T2 filed with CRA, so a lender approves the operating line.
  • The CSRS 4200 communication discloses that no audit or review was performed, and without it a bank and the Business Development Bank of Canada reject the file and the operating credit you need to carry your winter float.
  • We deliver the compiled statements within 30 days of receiving your records and the year’s T2 figures, because a $90,000 equipment-financing or lease approval collapses when the lender’s conditional offer expires before the file is produced.
  • We incorporate your business under the Ontario Business Corporations Act, giving you limited liability and the roughly 12.2% Ontario small-business rate; on one owner incorporating saved about $21,000 a year against the on-site exposure an unincorporated mason carries.
  • We complete the section 85 rollover on Form T2057, transferring your trucks, forklift, scaffolding, inventory and goodwill into the corporation at elected amounts, deferring the capital gain and recapture a straight sale of those assets would trigger.
  • We register your WSIB coverage in the construction rate group before the first crew starts, because coverage is mandatory and an unregistered owner faces retroactive premiums for up to 2 prior years plus penalties.
  • We open the corporation’s CRA Business Number, HST and payroll accounts within the first 30 days, set the source-deduction remittance schedule, and close the old accounts so your company never remits the same revenue twice.
  • We structure the share classes and set the first fiscal year-end up to 53 weeks after incorporation, so dividends can later be split among family shareholders and the first T2 and CRA balance-due date are deferred to save the company cash.
  • We reconstruct months of missing masonry books from bank deposits, supplier invoices and your Knowify or Jobber exports, rebuilding the general ledger and the six years of records section 230 requires so CRA cannot arbitrarily assess your company.
  • We restore the Construction Act 10% holdback as a receivable and rebuild percentage-of-completion work-in-progress on your open multi-week jobs, so a $75,000 progress billing booked straight to income during the backlog no longer overstates the profit CRA sees.
  • We value your brick, block, stone, mortar, sand and cement inventory under section 10 of the Income Tax Act and reconcile it to a year-end count, so a $30,000 load still on skids is not expensed before it is laid into a wall.
  • We recover the 13% HST input tax credits buried in your backlog of brick, block, cement, scaffolding and fuel receipts through Dext, so a masonry company reclaims the thousands of dollars in credits a neglected set of books usually forfeits.
  • We file the overdue T5018 Contract Payment Reporting slips uncovered in the cleanup for the subcontractors on your masonry jobs, clearing the $100-per-slip penalty CRA applies and delivering a reconciled trial balance your bank or lender can rely on.
  • We prepare your US federal and state returns — Form 1120 for a C corporation, 1120-F for a Canadian masonry company with US branch work, and Form 1065 for an LLC — and coordinate each with your Canadian T2.
  • We claim the foreign tax credit and apply the Canada-US treaty so the profit on a cross-border masonry contract poured in New York or Michigan is taxed once, not billed in full by both the IRS and CRA.
  • We file the Form 5472 information return required when a foreign shareholder owns your US masonry corporation or LLC, so the company avoids the $25,000 IRS penalty that applies per return to a missed or late cross-border disclosure.
  • We map your US filing footprint — the nexus a bricklaying crew creates by working across the border, effectively connected income, and state obligations — so your masonry company registers and files only in the states where it actually laid work.
  • We align the Canadian and US deadlines and estimated-payment dates year to year, tracking both the T2 balance-due date and the IRS quarterly instalments so a masonry contractor never carries a failure-to-file penalty on either side of the border.
  • We assess whether your masonry company qualifies for the CRA Voluntary Disclosures Program and prepare a complete Form RC199 submission for unreported cash jobs, missed T5018 slips or HST you collected on restoration work but never remitted.
  • We come forward before CRA contacts you, because a disclosure accepted under the general program cancels the penalties in full and gives 50% relief on the arrears interest that has built up across your unfiled masonry years.
  • We manage the full disclosure and every follow-up query from CRA, reconstructing the T5018 filings, the materials inventory and the holdback so your masonry corporation comes out of the program in complete compliance and off the audit radar.
  • We calculate your exposure up front — the tax on unreported masonry income, the HST on restoration work, and the interest — so a company sitting on $80,000 of undeclared cash jobs knows the full cost before anything is filed.
  • We structure the RC199 submission to meet all four validity conditions — voluntary, complete, involving a penalty, and at least a year overdue — so the disclosure on your masonry company is accepted rather than rejected and pushed to audit.

Masonry Tax & Holdback Check

Six quick questions on your Construction Act holdback, work-in-progress on multi-week jobs, your T5018 slips, your materials inventory, the apprenticeship credit and whether it is time to incorporate. No fee shown.

1. Are you carrying the Construction Act 10% holdback as a receivable until it is released?

2. Are you applying percentage-of-completion work-in-progress on your multi-week jobs?

3. Are you filing T5018 slips for the subcontractors you pay?

4. Are you tracking your brick, block, stone and mortar inventory at year-end?

5. Are you claiming the apprenticeship credit for your registered mason apprentices?

6. Is your masonry company incorporated?

Free CPA Consultation for Masonry Contractors

Case Studies: Masonry Contractor Accounting & Tax

Toronto Commercial Masonry Contractor — Holdback & WIP

The problem: A Toronto commercial masonry contractor laying brick and block on multi-month builder projects was booking the Construction Act 10% holdback as revenue the moment it invoiced, even though the holdback is not collectible until substantial performance is certified. Work-in-progress on open jobs was untracked, so profit was overstated on walls still going up, and the input tax credits on a large materials season were only partly claimed. The result was an inflated T2 and tax paid too early.

What we did: We set the 10% holdback up as a receivable recognized only when released, applied percentage-of-completion so work-in-progress is carried correctly in QuickBooks Online, and captured the missed material input tax credits on brick, block and cement.

The result:

  • Moved $70,000 of holdback out of premature revenue
  • Percentage-of-completion WIP now tracked at year-end
  • Recovered material ITCs — a large, correct tax reduction

Hamilton Brick & Block Masonry Company — Incorporation & T5018

The problem: A Hamilton brick and block masonry company was unincorporated, so strong margins landed on the owner’s personal return at Ontario’s top 53.53% rate with no way to defer the surplus. The owner paid several subcontractors through the year but had never filed a T5018, exposing the company to $100-per-slip penalties, and every load of brick, block and mortar was expensed on purchase rather than carried as inventory.

What we did: We incorporated the company under the Ontario Business Corporations Act, moved the trucks, forklift, scaffolding and goodwill across on a section 85 rollover with no gain triggered, applied the $500,000 Small Business Deduction so active income is taxed near 12.2%, filed the outstanding T5018 slips, and set brick, block and mortar as section 10 inventory.

The result:

  • Active income taxed near the 12.2% small-business rate
  • Filed prior-year T5018s, avoiding $100-per-slip penalties
  • Set ITA s.10 inventory on a $40,000 brick and stone load

Ottawa Heritage Restoration Mason — Revenue Streams & Apprentices

The problem: An Ottawa heritage restoration mason doing repointing, tuckpointing and stone restoration was mixing that higher-margin work with occasional new-build masonry in a single revenue line, so nobody could see which stream actually paid. Registered apprentices had worked for two seasons but the apprenticeship credit had never been claimed, and the weather-dependent, spring-to-fall cash flow left the company scrambling for HST and payroll money every winter.

What we did: We split restoration and repointing revenue from new-build work in the chart of accounts, filed Schedule 31 to capture the Apprenticeship Job Creation Tax Credit on the registered mason apprentices, and built a seasonal cash-flow plan in QuickBooks that reserves HST and source deductions through the busy months.

The result:

  • Restoration and new-build revenue streams now separated
  • Schedule 31 apprenticeship credit claimed and back-captured
  • Seasonal cash-flow plan — audit-ready, winter-ready books

Our Simple Process

How We Work With Masonry Contractors

Know Exact Fees within 2 Minutes NOW

Our clear, efficient process ensures every step is transparent, building trust and long-term client relationships.

Here’s a simplified process approach:
Step 1

Kickoff (Document Request)

Collect prior T2 returns, brick, block and stone inventory counts, holdback and retention records, open jobs and work-in-progress, progress-billing schedules, payroll and apprentice records, truck, forklift and scaffolding list, and bank statements.

Step 2

First 30 Days (Cleanup & Setup)

Set up QuickBooks Online or Xero, integrate Knowify, Buildertrend or Jobber, build holdback, work-in-progress, inventory and retention schedules, classify CCA, and configure payroll and WSIB tracking.

Step 3

Monthly Close

Monthly reconciliations, receipt capture, job costing on new-build and restoration work, HST on masonry, and inventory tracking.

Step 4

Quarterly Planning Review

Salary and dividend mix, HST, inventory and work-in-progress review, apprenticeship credit, and forklift and equipment purchase timing.

Step 5

Year-End Close & T2 Filing

Trial balance, financial statements with materials inventory, the Construction Act holdback and retention, T2 with GIFI, and CRA preparation.

Get Your Masonry Company Taxes Done Right Today

Transparent Pricing for Masonry Contractors

Affordable Pricing for Masonry Contractors

Know Exact Fees within 2 Minutes NOW

We believe in clear, upfront pricing so you know exactly what to expect. All fees include HST.

  • Tax Preparation (Corporation) — From $400
  • Tax Return Filing (Corporation) — From $400
  • Tax Compliance Audit — FREE CRA audit support for our clients
  • Tax Strategy — FREE for our clients
  • Accounting Base Plan — From $100 per month
  • Bookkeeping Management — Free for our Accounting clients
  • Financial Reporting — Free for our Accounting clients
  • Business Formation — Flat $35
  • Incorporation Process — Flat $35
  • Entity Setup Assistance — Flat $35
  • Full-Service Payroll — From $125 per month

Payment is by Interac e-Transfer to info@gondaliyacpa.ca only. Security question: Not Applicable, as auto-deposit is enabled.

Meet Your Lead Masonry Contractor Accountant

Meet your lead masonry contractor accountant. As your trade and corporate tax adviser, you deal with the same two people every year.

Sharad Gondaliya CPA

Sharad Gondaliya, CPA

Principal

Bio

647-212-9559
sharad@gondaliyacpa.ca

Vandana Goel CPA

Vandana Goel, CPA

Accounting Specialist

Bio

647-250-0242
vandana@gondaliyacpa.ca

What Our Clients Say

1300+ five-star reviews from masonry contractor and skilled-trade business owners across Ontario and Canada.

Serving Masonry Contractors Across Ontario

Our CPA team provides specialized accounting and tax solutions for masonry contractors throughout Ontario. We understand how holdbacks, work-in-progress, progress billings and materials actually flow through a masonry company, what CRA looks at on a cash-intensive file, and how to put your materials inventory and equipment fleet in the right place.

Toronto (ON)

55 Queen St E Ste 1205, Toronto, ON M5C 1R6, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Mississauga (ON)

2100 Camilla Rd #716, Mississauga, ON L5A 2J8

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Brampton (ON)

4 Starhill Crescent, Brampton, ON L6R 2P9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Scarborough (ON)

24 Clementine Square, Scarborough, ON M1G 2V7, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Vaughan (ON)

19 Cabinet Crescent, Woodbridge, ON L4L 6H9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Oshawa (ON)

210 Durham St, Oshawa, ON L1J 5R3, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Ottawa (ON)

2090 Neepawa Ave a314, Ottawa, ON K2A 3L6, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Etobicoke (ON)

60 Stevenson Rd #1601, Etobicoke, ON M9V 2B4, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Hamilton (ON)

70 Starling Dr, Hamilton, ON L9A 0C5, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Guelph (ON)

1155 Gordon St, Guelph, ON N1L 1S8, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Windsor (ON)

4387 Guppy Ct, Windsor, ON N9G 2N8, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

North York (ON)

150 Graydon Hall Dr #912, North York, ON M3A 3B2, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Masonry Contractor Accounting & Tax FAQs

Should I incorporate my masonry business?
Incorporating gives you limited liability, which matters when a brick or stone wall can generate a claim years later, plus a 12.2% Ontario rate on the first $500,000 of active income versus a personal rate up to 53.53% when unincorporated. The decision turns on whether you earn more than you withdraw, because that surplus is what a corporation lets you defer. When it makes sense, we handle the section 85 rollover of your equipment and goodwill on Form T2057.
Do masonry contractors charge HST?
Yes. Both your new-build masonry and your restoration, repointing and tuckpointing work are fully taxable at 13% HST in Ontario. There is no exempt line for masonry, so you charge HST on the entire invoice. In return you claim input tax credits on the 13% you pay for brick, block, cement, scaffolding, trucks and fuel, so only the tax on your value added reaches CRA. You must register once taxable revenue passes the $30,000 small-supplier threshold.
How does the Construction Act holdback work on my commercial jobs?
On commercial and builder masonry in Ontario, the Construction Act requires 10% of each progress billing to be held back until substantial performance is certified and the holdback period expires. That 10% is not revenue yet; it is a receivable you recognize only when released, and the amount a general contractor holds on you is a payable. Booking the full billing early overstates income and the tax on it. We carry the holdback correctly with percentage-of-completion work-in-progress.
How do I account for work-in-progress on multi-week jobs?
A masonry job that spans several weeks with progress billings is recognized on a percentage-of-completion basis, so revenue and cost land in the same period as the wall goes up. Booking full progress billings straight to income overstates profit on jobs still underway, and ignoring costs incurred understates it. We carry work-in-progress and the Construction Act holdback so your T2 reflects the real stage of each job, not just what you invoiced.
Do I have to file T5018 slips for my subcontractors?
Yes. If your company’s primary activity is construction and you pay subcontractors, you must file a T5018 Contract Payment Reporting slip and summary for each, reporting what you paid during your reporting period. Masonry is construction, so the crews and specialists you engage as subcontractors are reportable. CRA charges a penalty starting at $100 per slip for late or missing filings. We prepare and file your T5018 returns on time.
How do I handle materials inventory?
Your brick, block, stone, mortar, sand and cement on hand at year-end are inventory under section 10 of the Income Tax Act, valued at the lower of cost or net realizable value. Expensing everything as you buy it by the load overstates cost of materials and understates profit. We count and value inventory at year-end so cost of materials reflects only what you actually laid on jobs, not what is still stacked in the yard.
What CCA class is scaffolding or a mortar mixer?
Scaffolding and mortar mixers are CCA Class 8, depreciating at 20%. Your forklift is Class 38 at 30%, your service trucks are Class 10 at 30%, and small tools under $500 are Class 12 at 100%. Putting each asset in the right class matters, because burying a forklift or scaffold system in the wrong pool leaves depreciation and tax on the table. We claim it all on Schedule 8.
How much corporate tax does a masonry contractor pay in Ontario?
An incorporated masonry company pays roughly 12.2% combined federal-provincial tax on the first $500,000 of active income under the Small Business Deduction in Ontario, with income above that taxed at the general corporate rate. On top of corporate tax you charge 13% HST, remit payroll source deductions on the PD7A, and pay WSIB premiums. Unincorporated, the same profit lands on your personal return at rates up to 53.53%, which is why the break-even matters.
What can a masonry contractor write off?
Your service trucks are Class 10 at 30%, your forklift Class 38 at 30%, scaffolding and mixers Class 8 at 20%, all on Schedule 8. You also deduct brick, block, stone, mortar and cement laid, mason and labourer wages, WSIB premiums, subcontractor costs, yard rent, fuel, equipment repairs, insurance and training, plus a bad debt under paragraph 20(1)(p) where a customer never pays. We put each asset in the right class so you are not under-claiming.
How do I account for progress billings and retention?
On a larger masonry contract you bill in stages as the work progresses, and the general contractor typically holds back retention until the job is complete and certified. The progress billing is recognized on a percentage-of-completion basis, and the Construction Act 10% holdback is a receivable you record only when released. We carry both correctly so you never pay tax on money you have not yet earned or cannot yet collect.
Can I claim the apprenticeship credit for my apprentices?
Yes. If you employ registered bricklayer or mason apprentices in the first two years of an eligible Red Seal trade, your company can claim the Apprenticeship Job Creation Tax Credit on Schedule 31, worth 10% of eligible wages up to $2,000 per apprentice each year. We track apprentice wages separately from the rest of your payroll so the credit is captured and not forfeited at year-end.
How do I manage seasonal cash flow in masonry?
Masonry is weather-dependent, concentrated from spring to fall, while some costs and your own draws run all year. The winter cash squeeze is the number-one reason trade corporations fall behind on HST and payroll remittances. We build a cash-flow plan that sets aside HST and source deductions as you collect them, times equipment purchases and instalments, and smooths owner compensation, so the off-season does not force expensive borrowing or a missed CRA payment.
What accounting software works best for a masonry contractor?
We pair a construction platform such as Knowify, Buildertrend or Jobber with QuickBooks Online or Xero for the accounting, and Dext for receipt capture. The field app runs your estimates, progress billings, job costs and holdbacks, and we map it to the general ledger so new-build revenue, restoration revenue, materials and holdback post to the right accounts. We set it up and maintain it so your HST, inventory and year-end all tie out.

Related Industries We Serve

Accountant for Concrete Contractors

  • Progress billing and Construction Act holdback
  • Materials inventory, T5018 and WSIB
  • Equipment CCA and corporate tax filing

Accountant for Excavation Companies

  • Heavy-equipment CCA and holdback accounting
  • T5018, WSIB and crew payroll
  • Corporate tax filing and HST

Accounting for Small Businesses

  • Corporate tax planning for small businesses
  • Business tax filing and financial statements
  • Payroll and bookkeeping services

Accountant for Incorporated Businesses

  • T2 corporate returns and GIFI
  • Salary, dividend and SBD planning
  • Compilation statements and incorporation

Masonry Contractor Accounting & Tax Done Right.

T2 filing, HST on new-build and restoration work, brick, block and stone inventory, the Construction Act holdback and retention, percentage-of-completion work-in-progress, service-truck, forklift and scaffolding CCA, mason payroll with WSIB and the bricklayer apprenticeship credit under one roof. AFFORDABLE flat fees, no hourly billing. Licensed CPA Ontario. 1300+ five-star reviews. 30-Day Money-Back Guarantee.



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