He is being vague because this is very difficult to say in advance. Do you know what your salary is going to be? If so, you can estimate into which tax bracket you will fall by verifying these guidelines as per the Revenu Quebec website (http://www.revenu.gouv.qc.ca/en/entreprise/retenues/methode_calcul/donnees_relatives.aspx
Income threshold and income tax brackets
For 2011, the income tax rates applicable to the three income tax brackets remain at 16%, 20% and 24% and the thresholds for the three income tax brackets have been indexed as follows:
* The 16% rate applies to taxable income of $39,060 or less. (The threshold was previously $38,570.)
* The 20% rate applies to taxable income over $39,060 but not over $78,120. (The threshold was previously $77,140.)
* The 24% rate applies to taxable income over $78,120.
What your actual liability will be is anyone's guess. Will you contribute to an RRSP? Have medical expenses or public transit expenses to write off? Will you pay tuition? All of these things will have an impact, but the information above should be a starting point.
Thanks very much for your response, it has been so helpful.
Lets say these are the particulars of my job:JOB TITLE :
IT/Telecoms ConsultantJOB LOCATION :
Montreal, QuebecSALARY :
$30/hr (according to the contract I would sign, the $30/h salary is actually as follows: $20/hr salary + $10/hr per diem = $30/hr)
I am not sure what tax implications the salary of $20/hr salary + $10/hr per diem = $30/hr
has, will I be taxed on the $30/hr....or the $20/hr ?ALL
accommodation (along with utilities etc) and transportation expenses and ANY other expenses will have to be paid by me.
As per my contract I am required to provide any insurance for myself, but since I know insurance will not be provided by my employer I would consider that an expense I will have to cover.
If I have a medical emergency/expense, I will have to cover that myself.
I have zero benefits.
I will not be paying any tuition.
What is RRSP? I am almost certain I will not be contributing to such a thing.
Apart from "day-to-day", "month-to-month" living expenses (such as rent, utilities, transportation and food) I should not have any other expenses.
(I am sure I will want to go partying and possibly buy some clothes etc., but those expenses would not be "compulsory" expenses at this time)
I am still not sure why my potential employer (who is a job agency
) would be finding it difficult to say what my tax obligations would be....considering everything I have outlined above is already known to my employer.
Note that my employer is "job agency"....i.e., I would expect that my employer would have experience with these kind of issues/questions.