New Contractor - How do I do my own Payroll?

[Incogneto]

I am new to the contractor game....doing some work on my own, but there are issues.

I am getting checks (+GST), but not sure what I have to deduct for EI and CPP, nor how to pay it. I have taken the first steps by getting a GST number, but I have no idea what to do after that.

Can anyone here be any help to me either with their own experience, or provide a link to help me out?

TIA

[ah123]

This is probably a good place to start -- they gave me quite a bit of information when I got thrust into contracting (7 years ago)

http://www.canadabusiness.ca/alberta/main.cfm

Good luck...

[Shazam]

You will get a payroll remittance form every month from the government.

Calculate deductions here: https://apps.cra-arc.gc.ca/ebci/rhpd...o?lang=English

You do not need to deduct EI.

You have to remit every month, until they trust you.

I recommend that you only pay yourself about a $10/hr wage, and then let your accountant figure out the best strategy to minimize overall taxes.

GST is done separately.

[sixpacked]

Originally Posted by InCoGnEtO

I am new to the contractor game....doing some work on my own, but there are issues.

I am getting checks (+GST), but not sure what I have to deduct for EI and CPP, nor how to pay it. I have taken the first steps by getting a GST number, but I have no idea what to do after that.

Can anyone here be any help to me either with their own experience, or provide a link to help me out?

TIA

First question, do you have any employees? If no, why are you deducting EI/CPP? Are you incorporated or just a sole proprietorship? I would recommend, in addition to internet research, finding the name of a good accountant/bookkeeper who can easily answer all of your questions rather quickly/easily.

[sixpacked]

Originally Posted by Shazam

You will get a payroll remittance form every month from the government.

Calculate deductions here: https://apps.cra-arc.gc.ca/ebci/rhpd...o?lang=English

You do not need to deduct EI.

You have to remit every month, until they trust you.

I recommend that you only pay yourself about a $10/hr wage, and then let your accountant figure out the best strategy to minimize overall taxes.

GST is done separately.

If you are a sole proprietor, you cannot employ yourself.

[Shazam]

I'm assuming he's incorporated.

If he's a sole proprietor, he won't get payroll forms. That, and he'd know he's a sole proprietor.