How much salary in hand

[Anpman]

Hello all,
If a consultant is giving me 40$ /hr salary,7 hrs per day, how much salary will I get in hand per month ?
2.Also do consultant give any other benefits like medical etc?
3.what things to keep in mind while signing offer letter with consultant?
I have to take decision this weekend..

 

[Nick1233]

It depends on the setup. If the consultant requires you to setup a corporation, all income will be your corp's revenue and your corp will have to run your payroll. How much you get paid is up to you as a founder of your own corp. Any left over profit under corp will incur corp income tax at end of the year.

If you do this, make sure to charge GST on top of 40$.

In this setup, typically there aren't any benefits like vacations, insurance etc. You are on the hook. Your corp could buy private/group insurance for you as an employee and claim that as a business expense. (group insurance might not be available for just one employee)

First, you need to check how the consultant is willing to setup your pay.

 

[Anpman]

It depends on the setup. If the consultant requires you to setup a corporation, all income will be your corp's revenue and your corp will have to run your payroll. How much you get paid is up to you as a founder of your own corp. Any left over profit under corp will incur corp income tax at end of the year.

If you do this, make sure to charge GST on top of 40$.

In this setup, typically there aren't any benefits like vacations, insurance etc. You are on the hook. Your corp could buy private/group insurance for you as an employee and claim that as a business expense. (group insurance might not be available for just one employee)

First, you need to check how the consultant is willing to setup your pay.

As of now I will be on T4, not incorporated..so how much will be in hand if it 40$/hr?

 

[Nick1233]

As of now I will be on T4, not incorporated..so how much will be in hand if it 40$/hr?

You could check online in some calculators.

https://turbotax.intuit.ca/tax-resources/canada-income-tax-calculator.jsp

 

[Nick1233]

Hello all,
If a consultant is giving me 40$ /hr salary,7 hrs per day, how much salary will I get in hand per month ?
2.Also do consultant give any other benefits like medical etc?
3.what things to keep in mind while signing offer letter with consultant?
I have to take decision this weekend..

As of now I will be on T4, not incorporated..so how much will be in hand if it 40$/hr?

Also If there are no benefits, you should have them commit the number of hours, duration of the engagement etc.
If they are desperate to hire you, try having a clause to revisit the pay after 6 or so months. Good luck.