Location: God's own country
Posted on: 31-07-09 17:40:16
hello CD's,
An agency sent me out for a temp. job for 3 days. They had an option for being a worker or as an independant contractor. I choose being an Independant contractor. I had to file the TD1 and TD1 (ON) forms for them.
Now they have sent me a pay cheque for an amount after deducting for CPP and EI but NOT Canadian taxes. I have had the same amount given to me by my ex-employer and he had deducted taxes for it and so the amount is not that significantly low to qualify for No Income Tax deduction.
Does any one know the rationale behind this move and what kind of filing (for tax) that I have to do in the future.
Your replies would be much appriciated.
Peace by TK
-----------------------------------------------------------------
I am a Gents and not a Ladies.
Hey !!! TK this response is not about your taxation...
But just would like to informed u that just be careful working on payroll if you are going for school through EI
Location: God's own country
Posted on: 01-08-09 00:00:27
Upon Googling, I got the answer. The answer is in this : http://www.procom.ca/docs/en/independentcontractor_faqs.pdf
Hope it will help someone in their time of need.
In a nutshell, It says that if you work as an independant contractor with an agency, they need to deduct EI and CPP ad top it up with the employers contribution. It also says that the tax code does not need income tax to be deduected at source and hence they did not deduct it. All this will be sent to the govt.. So I also have to fill it in my 2 week EI reporting form.
Peace by TK
-----------------------------------------------------------------
I am a Gents and not a Ladies.
Thanks for sharing TK ..
I thought that no deductions were done if you were working as an independent contractor ..... I have worked as one before and this was the case ... May be the rules differ when you work for an Agency ....
Upon going through the link I have found contradictory information .... one says that if you are contracting through a placement agency EI & CPP will be deducted and the Agency will make its own contribution ..
Further down , for Incorporation it states that if you own > a specific % share in the Inc , you are not entitled to EI & CPP ...........
Does that mean that if you are incorporated and working through a placement Agency , they would not deduct EI & CPP ??
-----------------------------------------------------------------
Fido.
