Click to go to Forum Home Click to go to maXbimmer Home

Go Back   maXbimmer Forums > Misc > Off-topic
User Name
Password


Welcome to Maxbimmer.com!

You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!

Reply
 
Thread Tools Rate Thread Display Modes
Old 01-28-2009, 06:25 PM   #1
BlitzSix
6 Speed
 
Join Date: Dec 2002
Location: Toronto
Posts: 3,405
Send a message via AIM to BlitzSix Send a message via MSN to BlitzSix
Any tax experts? EI ?



Hi, I need a bit of help... I just got a job, basically it's transcribing college lectures for deaf / hard of hearing students. George Brown is in charge of it (I invoice them), but I go to different colleges. It is a part time job, not a career or anything, but I like the job and plan to keep it for a while. I'm living at home with my mom (if that makes a difference).

I was hired through a staffing agency (Manpower) which pays me. They take off quite a bit of deductions, around $100ish per cheque. If say I was to invoice for $550, they would add $20 for vacation pay, subtract $80ish for federal tax, $25ish for CPP, $10ish for EI, leaving me with $460ish.

I have the option of giving them a GST number (I would obviously have to get one first), so that way they don't take anything off, but I would have to file my taxes through that GST # and pay them on tax time. Should I do this? I know that if I do that I can write off expenses, can I still write off some stuff (gas, computer parts, car repairs maybe, etc) when I do my taxes if I'm just paid normally or only if I do that GST number thing? Will I still get the vacation pay? Will I pay less taxes overall with the GST number thing, or should I just not bother? Any advice would be great.

And also, about EI, I talked to someone who does it through a GST number and she doesn't pay EI. Obviously, she is not eligible for EI then since she doesn't contribute to it. However, can anyone clarify how EI works? Like I have my schedule and everything for this semester... they still need people like me in the summer due to summer classes, but obviously they need less, so I'm not sure if I will or will not have employment in the summer (it would resume in September, though) or if maybe I just get much less hours. So....if I can't work in the summer since they don't need me, can I claim EI for that? If so then maybe it would just make sense not to save on taxes since EI would be beneficial.

Any advice is appreciated, thanks..
BlitzSix is offline   Reply With Quote
Old 01-29-2009, 02:22 PM   #2
e0fw3l54
1st Gear Newbie
 
Join Date: Jun 2003
Location: Now it's London ON
Posts: 15
I'm not an expert on personal taxes...I know just enough to cause a bit of trouble. Here are the general rules,

In order to have Manpower not deduct taxes the relationship needs to be employer/independent contractor. being recognized as independant contractor is a question of fact.

CRA uses test to determine employer/employee vs independent contractor. These test include things like are you dependant on one source of income or do you have many contracts. Also they look at whether you own your tools of trade. (ie all the transcribing occurs on equipment purchased by you, you are not provided a computer etc.)

There are a few other tests but I've forgotten them. you do not need to register for GST unless your taxable services being offered exceed 30,000. I would not recommend registering for GST unless you are required to, gst compliance can be over burdening. and there is limited benefit.

if you want to lower your personal income tax register a sole proprietorship. or as corporation... but as a corporation there is double taxation when you rec. salaries from your corp (first the corporation pays tax on income earned then you pay tax on the salaries your corporation paid you), however you can take out just over 30k through dividends to avoid the double tax.

I would register a business (sole proprietor) and if manpower agrees have them contract out the work to your business instead of you directly.

PM me if you want more info.
__________________
2003 325CI - Sapphire Black
e0fw3l54 is offline   Reply With Quote
Reply

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump


All times are GMT -4. The time now is 10:06 PM.


Powered by vBulletin® Version 3.8.1
Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
Maxbimmer Copyright 2001 - 2015