CPP and self-employment - Ontario
#1
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.
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.
#2
Re: 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.
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.
#3
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.
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.
#4
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: CPP and self-employment - Ontario
yet I have a self-employed friend who claims she doesn't pay any CPP at all. Am I missing something here?
* 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.
#6
Re: CPP and self-employment - Ontario
Check out this webpage from the CRA ...
#7
Re: CPP and self-employment - Ontario
* 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.
* 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.
Now that I know I'm not missing anything about the CPP, I'm ready for the next step - thanks, guys!
#8
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.