Quote:
Originally Posted by CaptainCrunch
Ok, so I'm working on negotiating with one of my opportunities, which is the tech incubator company.
So I have some questions for the brain trust here because you guys are all brilliant.
It looks like they're preferences for this role is as a contractor. That's fine, though I've never worked as a contractor before I've always been an employee.
I need to understand the steps of this
1) I was looking it up, and they recomended registering a business, is there an easy way to do this and costs. I'm assuming that I'm probably going to want to do a sole proprietorship right.
2) How do I handle paying myself out of this, I'm guessing I'm just withdrawing income from the business as an expense?
3) How do I go about submitting my taxes and CPP I'm assuming I do that as an indivual from the funds that I withdraw from the business?
4) Is there anyway to protect myself with EI?
5) Any recommendation on health planes. I was looking at Sureplan but are there others I should look at.
6) Am I going to need an accountant to navigate me through this?
Anything else I should be thinking of.
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Honestly, talk to an accountant. When I did a short contracting stint the guy went through all the options available for paying myself, got QuickBooks set up so all I had to do was enter some data and give it to them at year end, and handled the end of year submission. Well worth the money.
When I did it, I set up a numbered company (cost a few hundred). At the time, the accountant recommended I pay myself in dividends, but through a regular payroll T4 is also possible (and maybe preferred, depending on situation, and would include CPP contributions).
Taxes went through the accountant, who also generated the T5 that I needed for my personal forms.
CPP (if not using a T4) and EI would need to be opted into, if you wanted them...you should be able to opt into CPP?. The way my accountant put it, if you are planning properly then you should be putting money aside for retirement anyway, and you'll get more back than from CPP. Note that you need to set up accounts with the CRA to use the various business accounts.
But ya, definitely find an accountant. Navigating tax stuff is a pain.