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Originally Posted by You Need a Thneed
I'm sure its in this thread already somewhere else - but what do I need to know about potentially taking contract work? setting aside money for taxes, Albert Blue Cross, setting up a entitity in order to get paid, can I pay my wife to do some accounting, etc?
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It depends. I am contracting now through an IT firm. I had the option to be a T4 employee of the firm instead of incorporating. So every paycheck all my taxes get taken off. I contribute to CPP and EI, and get vacation pay added on.
I don’t have to worry about taxes since I didn’t want to bother with it at this point since it’s my first time contracting.
I made sure my rate was high enough so that it would cover out of pocket benefits, any days off, etc that I would lose out on.
So far I’m happy with my arrangement as I’m making much more money than I ever did when I was an employee. I do miss having a savings/pension though through an employer as that was basically free money.