Tax benefits for IT contractor (as self emplyed)

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Jack109
Member since: Jul 04

Posts: 254
Location:
Post ID: #PID

Posted on: 11-12-07 08:54:37

I just got into a new positon as a contractor with a company
as an ERP consultant.The company is not provding any benefits from
their side but will be deducting taxes from my pay(like a salaried employee).

Is there any way I could benefit at the end of the year
by claiming that I was self employed.

Regards,
Jack109

desi_driller
Member since: Sep 04

Posts: 419
Location:
Post ID: #PID

Posted on: 11-12-07 09:38:49

As Company will be deducting Taxes from your salary, they will issue T4. In that case, you can not claim any benefits under self employed. Employment status is not related with benefits in any way.

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Driller the thriller

Jack109
Member since: Jul 04

Posts: 254
Location:
Post ID: #PID

Posted on: 11-12-07 15:27:33

Thanks desi_driller,
But if I am not a permnenet employee how can they even deduct my taxes ?

Is it legal? I am hoping that there should be be some way out of this legal wrangle. I am a contractor and still paying full taxes (:-((

puttoo
Member since: Jan 05

Posts: 1096
Location:
Post ID: #PID

Posted on: 11-12-07 15:33:29

Quote:
Originally posted by Jack109

Thanks desi_driller,
But if I am not a permnenet employee how can they even deduct my taxes ?

Is it legal? I am hoping that there should be be some way out of this legal wrangle. I am a contractor and still paying full taxes (:-((

Check http://www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-06e.pdf

Pramod Chopra
Member since: Sep 03

Posts: 1284
Location: Pickering, ON
Post ID: #PID

Posted on: 11-12-07 18:02:23

Your claiming of expenses would depend on your condition of employment.

Your employer would sign and give you Form T2200 at the tax time which would describe what expense you can claim on your tax return. However, you should ask that form before hand so you would know if you could claim any expense or not.

For detailed information please follow this http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines206-236/229/menu-e.html
and see the Employment Expenses Guide (T4044) and Form T777 Statement of Employment Expenses for more information.

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

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Tax benefits for IT contractor (as self emplyed)

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