T4 vs INC Job

[cantrv2022]

Hi All

I moved to Canada 6 months back and currently working as a full time employee with 150K+bonus and other benefits like heath insurance, PTO etc.

I got a job offer with either CAD $60/hr on T4 (including Vacations) or CAD $75/hr +HST Incorporated on contract basis . This is my first time with a contract based role in Canada and wanted to know if the pay scale is similar to what I am earning already.

I tried to do some calculations but really confused right now, any help/info on this is really appreciated.


Thanks in advance !

 

[Copingwithlife]

Hi All

I moved to Canada 6 months back and currently working as a full time employee with 150K+bonus and other benefits like heath insurance, PTO etc.

I got a job offer with either CAD $60/hr on T4 (including Vacations) or CAD $75/hr +HST Incorporated on contract basis . This is my first time with a contract based role in Canada and wanted to know if the pay scale is similar to what I am earning already.

I tried to do some calculations but really confused right now, any help/info on this is really appreciated.


Thanks in advance !

Get an accountant

It’s not that simple . If you’ll incorporate are you going to take the salary out as wages subject to payroll taxes the corp will pay , or take it out as dividends which are tax at a different rate ?
That $75/hr isn’t tax free . You’ll pay the employer plus employee match of the CPP. Not eligible for EI since you’ll own more than 40% of the company .
As mentioned you need an accountant to go thru dry runs of compensation paid either as a employee or under a owned corporation
Plus as a corporation you’ll file T2 annually, HST returns , payroll submissions, RZ submissions. Those accounting fees can add up quickly . A CPA can charge $1000-$2000 just to file a T2

 

[Naturgrl]

Hi All

I moved to Canada 6 months back and currently working as a full time employee with 150K+bonus and other benefits like heath insurance, PTO etc.

I got a job offer with either CAD $60/hr on T4 (including Vacations) or CAD $75/hr +HST Incorporated on contract basis . This is my first time with a contract based role in Canada and wanted to know if the pay scale is similar to what I am earning already.

I tried to do some calculations but really confused right now, any help/info on this is really appreciated.


Thanks in advance !

Not an immigration issue. Get an accountant to figure it out based on provincial taxes, CPP etc. Or go on the CRA website and look up provincial taxes, CPP etc. and calculate yourself.