CPP and self-employment - Ontario
 

I'm looking into becoming self-employed (caregiving/nannying), and have a quick question about CPP.

In everything I've read on the CRA website about self-employment and CPP, it says you have to pay both parts (employer's and employee's), yet I have a self-employed friend who claims she doesn't pay any CPP at all. Am I missing something here?

I don't mind either way, I just need the facts, so I can charge accordingly. :)

Re: CPP and self-employment - Ontario
 

I pay both halves. Also EHT. I am reliably informed that unlike, say, the GST, these are not taxes one should dither over paying.

Re: CPP and self-employment - Ontario
 

Hi Wannabe

The CRA considers a self-employed person as both the employer and the employee, so you would be responsible for making both portions of the contributions.

Check out this webpage from the CRA ...

Good luck! J :)


Yes - DBD33 is right, don't dither. CRA is not very forgiving with corporate or self-employed taxpayers.

Re: CPP and self-employment - Ontario
 

As others have said, you have to pay CPP on self-employed earnings. However, you will get a pension from the contributions you make (wherever you live when you retire). It will not be enough to keep you in any kind of luxury but it's better than nothing.

* There is a minimum threshold of $3,500. If their total earnings are below this then they do not pay CPP.
* They might have maxed out their CPP for the year in paid employment.
* They may be under 18, or already receiving a CPP benefit (e.g. already retired)
* They may be a Status Indian employed on Reserve
* They may be a member of a religious order who has taken a vow of poverty

Otherwise they must be dealing in cash and not declaring it.

Re: CPP and self-employment - Ontario
 

EHT as in Employer Health Tax? From a quick google, it doesn't seem like something I'll have to worry about, since I'll be making less than 400 grand.

Re: CPP and self-employment - Ontario
 

Thanks for the link, it confirms what I've found as well!

Re: CPP and self-employment - Ontario
 

Thanks, JonboyE - I'm thinking it might be #2 - none of the others apply.

Now that I know I'm not missing anything about the CPP, I'm ready for the next step - thanks, guys! :)

Re: CPP and self-employment - Ontario
 

Yes, that's the one. Understand that I push tax avoidance to the limit, if there's a grey area I'm in it. Still, I pay the CPP and EHT on the proper day, Janurary 15th, iirc. My understanding is that failure to do so results in RevCan nailing one to the ****ing cross.