Taxation rate in Toronto ?

[sarimraza]

Dear If I do some job that pays gross 3000 dollars per month, how much of that do i have to pay in taxes per month ?

If i make the same while running a business like grocery store, how much of it would go in taxes ?

Thanks

 

[Heliosdz]

As per my calculations, 3000$ per month = 36000$ per annum, you'll have to pay 15% federal tax (5400$) + 5.05% Ontario tax (1818$), total taxes will be 7218$ per year.

 

[seton]

As per my calculations, 3000$ per month = 36000$ per annum, you'll have to pay 15% federal tax (5400$) + 5.05% Ontario tax (1818$), total taxes will be 7218$ per year.

Partially correct, however you need to factor in the basic tax credits. Your first $10,822 of income isn't federally taxed while your first $9,405 of provincial (Ontario) income isn't taxed. So that reduces your tax burden.

I would recommend using a tax calculator: http://www.taxtips.ca/calculators/taxcalculator.htm

To the OP's second question, business taxation can be as complicated as what you want it to be. If you pay yourself a salary, then the above rates would apply on the salaried amount. However you can pay yourself through dividends, equity, or a multiple combination other mechanisms to tweak your tax rate. It isn't much of a simple answer.

 

[charkei]

Hi, I have some questions here and I hope you guys could help me out.

I came here in Toronto Canada last January 2012. 2 months after I found a job which is in Mcdonalds as a crew on weekdays and a part time home support caregiver on weekends on a private employer. I could earn to as much as $2300 to both jobs. My question is, should I declare my earnings on my part time job? I was paid by check and I wasn't paid for taxes from it. Thank you so much. I am hoping for a reply.

 

[charkei]

Partially correct, however you need to factor in the basic tax credits. Your first $10,822 of income isn't federally taxed while your first $9,405 of provincial (Ontario) income isn't taxed. So that reduces your tax burden.

I would recommend using a tax calculator: http://www.taxtips.ca/calculators/taxcalculator.htm

To the OP's second question, business taxation can be as complicated as what you want it to be. If you pay yourself a salary, then the above rates would apply on the salaried amount. However you can pay yourself through dividends, equity, or a multiple combination other mechanisms to tweak your tax rate. It isn't much of a simple answer.

Hi, I have some questions here and I hope you guys could help me out.

I came here in Toronto Canada last January 2012. 2 months after I found a job which is in Mcdonalds as a crew on weekdays and a part time home support caregiver on weekends on a private employer. I could earn to as much as $2300 to both jobs. My question is, should I declare my earnings on my part time job? I was paid by check and I wasn't paid for taxes from it. Thank you so much. I am hoping for a reply.

 

[seton]

Hi, I have some questions here and I hope you guys could help me out.

I came here in Toronto Canada last January 2012. 2 months after I found a job which is in Mcdonalds as a crew on weekdays and a part time home support caregiver on weekends on a private employer. I could earn to as much as $2300 to both jobs. My question is, should I declare my earnings on my part time job? I was paid by check and I wasn't paid for taxes from it. Thank you so much. I am hoping for a reply.

Yes, you are required to declare all income from any employment on your tax return. You should have gotten T4s from the part-time jobs you did. The CRA reconciles T4s to filed taxed returns, so they can easily detect if you fail to declare employment income.

 

[charkei]

Yes, you are required to declare all income from any employment on your tax return. You should have gotten T4s from the part-time jobs you did. The CRA reconciles T4s to filed taxed returns, so they can easily detect if you fail to declare employment income.

Thanks..but I could not get T4 from my private employer coz he said that he will declare it that his paying this such amount of money from me and that I would have to pay taxes from it. On the other hand I am concern that I would have to pay taxes that in a very big amount. May I know how much tax money the government gonna take from me if I'm earning 1300 a month (private employer) and 1000 a month (McDonalds). I really am working to death with lack of sleep to this. Hoping for a reply, thank you.