Working as contractor
 

Hi all

Having arrived in Toronto on a WHV and looking for IT work I have been put forward for some 6-9 month contract work.

I quote a hiring managers email:-

Here is the link for sole proprietorship and hst # registration. Basically anyone who makes over 30k a year as a contractor must register an hst #


Can anyone tell me what and why i Need to do the above as I thought all i would have to do is give my employer my SIN number?

Thanks
Bobby

Re: Working as contractor
 

They are contracting you as a self employed contractor so you will need hst number to invoice them and do your own taxes

Re: Working as contractor
 

Would this be the same for any sort of contracting jobs or would it vary between different employers?

Re: Working as contractor
 

its in the wording ,,you want an employment contract not contractor employment,

Re: Working as contractor
 

A contractor is another name for self employed in Canada. Under Canada Revenue Agency Rules any business, self employed or corporation must register for federal sales tax (HST). You may also want to check out the CRA definition of self employed, they may end up reassessing you as 'employed' if you don't meet there criteria.

You should read these and understand them before diving in:

http://www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-11e.pdf
http://www.cra-arc.gc.ca/tx/ndvdls/s.../menu-eng.html
http://www.cra-arc.gc.ca/tx/bsnss/tp.../menu-eng.html

You do not need and HST number to create an invoice or file taxes. It is only if your sales (income) exceed $30,000.

You will need your SIN to file taxes as self employeed or an employer requires it to deduct and remit payroll taxes for employees.

Re: Working as contractor
 

Because it is not your employer (as you will be self-employed). It is your customer.

Your customer does not need to know (in fact shouldn't know) you SIN. The only people who need your SIN are the government, a bank if they pay you taxable interest, an investment trust, or an employer (that is, if you are on the payroll).

HST is very similar to VAT in the UK. You register if you will bill more than $30,000 a year. You charge HST to your customer(s). At the end of the year you fill out an HST return and pay the HST you collected, less the HST on any purchases you made to earn the income, to the Government.

Your customer(s) have a right to know your HST registration number. You must show this on all your sales invoices.

Re: Working as contractor
 

hi all thanks for the info, i get what i need to do now so will register as required

cheers
bobby