Posted on: 06-06-09 17:19:58
I am working for a company as an IT consultant as a contractor for the last 1.5 years. They do not provide me any benefits but deduct my tax,cpp,ei from my biweekly pay cheques as a normal salaried employee.
If they decide to terminate my contract for any reason will I have any issues in my EI claim.
Thanks.
Jack109
Quote:
Originally posted by Jack109
I am working for a company as an IT consultant as a contractor for the last 1.5 years. They do not provide me any benefits but deduct my tax,cpp,ei from my biweekly pay cheques as a normal salaried employee.
If they decide to terminate my contract for any reason will I have any issues in my EI claim.
Thanks.
Jack109
If they are deducting your taxes, CPP & EI and are depositing these with relevant authorities along with their contributions as applicable like in case of a normal salaried employee, then you will get the EI claim, if God forbid you happen to need it. I believe they are also issuing you a T4 or a T4A at year end for your tax purposes as well.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Pramodji,
Thanks.I paid taxes for 2008 as a salaried employee though I worked as an IT contractor without benefits. Could I have paid taxes as a self employed individual fo 2008.
If for some reason my contract is terminated do I need to prove to EI that the terminataion was unjustified.Do I need any letter from my employer to claim EI.I know I have not done my home work on this one(:-))
There is a difference in being an Independent Contractor and a Contract Employee. In both cases, generally you do not get any benefits from your employer. However, in your case it seems like you are being treated as a contract employee, where in they can terminate your services any time and they are not going to pay your any severance or any thing etc. But, since they are deducting your taxes, CPP and EI, you would get the EI benefits, if your contract employment is terminated and then your employer would give you a ROE (record of employment) which will have an appropriate code which will determine if you were terminated or laid off.
In case of an Independent contractor, the employer does not deduct (or withhold) any taxes, CPP or EI from your payments and as such you are responsible for paying your own taxes and CPP at the time of filing taxes. If your contract is terminated in this case, then you do not get any EI as you did not contribute any amount to EI. In case of an independent contractor, you file your taxes as a self employed and can claim certain expenses depending on your field.
If you have any specific question and do not wish to ask here, then you can either PM me or email me and I will try to get you an answer for the same.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Few years back before obtaining my immigration, i was working on work permit (as my spouse was studying) the company was deducting EI on my salary, and when i got laid off (after working for 6 months), i called EI for the benefit and they told me i am not eligible even i was paying EI on every pay check as i am on work permit.
