employment insurance earnings
question of income tax in Canada?
Please help me with my questions. I live in Vancouver, BC, Canada and work as a teacher in a learning center. Do not know why the employer to all employees classified as self-employed. Therefore, we are all self-employed by their tutors and get paid by the hour. That means there are no deductions from our paychecks (no contributions to the Canada Pension Plan and Employment Insurance). All our gross income. (1) I am single, no children, and have no assets, investments, bonds, cars, etc.. I have always been living in Vancouver, BC, Cananda. I rent an apartment to go to work by bus. Roughly, I have earned a gross annual income of $ 14 000 CAD in late 2008. How much do you think I will have to pay the government when I file a tax return next year? (2) Why does my employer use to us in a self-employed? Is getting all the benefits of this? Thank you very much.
When you say 'I rent an apartment,' I will assume that you are a tenant, not the owner, who seems to be taking the first answer. First, it is not unusual that tutors would be classified in this way. I know someone in the same boat, despite working through an agency (similar to Sylvain). Keep receipts for any and all costs incurred that relate to their mentoring, and standing, and such. Please have a car, and not have to go from place to place students to tutor different, I can not think of what else can claim. If you are taking the bus to work, start using monthly passes and keep them. Now is due in Annex 1 as a non-refundable. For that to become a valid deduction, you must show your name, the amount paid, and must have been for unlimited use during the month. If your gross income is about $ 14,000, which will be subject to Federal taxes on income and British Columbia. The estimated amounts are as follows: Federal: 15% over $ 9600 ($ 660) BC: 5.35% over $ 9189 ($ 257.40) Thus the income tax does not add all that much. The big, juicy bite will be the Canada Pension premiums, and this is one of the benefits that your employer has "no use" you ". When used regularly, an employer is required to match their contributions to the CPP. The normal rate is 4.95% of the incomes above $ 3,500. When you are self-employed, you are required to pay the normal rate for employees, and also coincides with the contribution, because you are your own employer. So you have to pay 9.9% of income above $ 3,500. CPP: (14,000 -3,500) * 4.95% = $ 1039.50 So their income $ 14,000 approximately responsibility income tax and CPP will be about $ 1958. One more thing to be cautious. As self-employed, can not pay EI premiums. So if you lose your job for any reason, you do not qualify for EI benefits.
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