Does working as a contractor hinder express entry?

[Naturgrl]

I want to apply for PR in express entry and I need Canadian Job Experience. Right now I am paying my tax by myself at the end of the year and I am not getting T4.

If you are not getting a T4 then you are considered self employed. Self employment is not counted as Canadian experience.

https://www.canada.ca/en/immigration-refugees-citizenship/services/immigrate-canada/express-entry/eligibility/canadian-experience-class.html#work-experience

 

[Copingwithlife]

I want to apply for PR in express entry and I need Canadian Job Experience. Right now I am paying my tax by myself at the end of the year and I am not getting T4.

Some employers classify individuals as on contract to avoid paying payroll taxes etc . If you feel that you should be classified as an employee versus as on contract , you can request the CRA to rule on the issue . If the CRA decides in your favour , then you’d be classified as an employee, meaning a T4 would be issued , and you and your employer have to pay any payroll remittances that would have been due the Federal Government. For your employer that means , penalties & interest , issuing T4’s, and more than likely a closer look into the companies payroll records . For you , you’d have to adjust past tax returns .
For rulings , the CRA will reach out to the employer .


https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4110/employee-self-employed.html#


https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/cpt1.html

 

[theonlyone1]

Is this for CEC or FSW? If Canadian work experience, do you get a T4 from the company for your taxes?

If the company is not Canadian and my work was outside Canada what documents do I need? I can get company reference letter and bank statements for the salary transfers, probably will be hard to get tax docs because I out of country, would that be enough for EE FSW?

Also another story, I'm currently still working there full time while being a student "2 months ago" in Canada (I learned that it's okay since it's remote), I will be filing my global income taxes here and everything, I can use that time for FSW experience as well, right?

 

[iSaidGoodDay]

If the company is not Canadian and my work was outside Canada what documents do I need? I can get company reference letter and bank statements for the salary transfers, probably will be hard to get tax docs because I out of country, would that be enough for EE FSW?

Also another story, I'm currently still working there full time while being a student "2 months ago" in Canada (I learned that it's okay since it's remote), I will be filing my global income taxes here and everything, I can use that time for FSW experience as well, right?

If the company isn't Canadian and you were a contractor with them - you need:
1. Reference letter
2. Contract

 

[felibg]

If the company isn't Canadian and you were a contractor with them - you need:
1. Reference letter
2. Contract

So can an independent contractor, who works at a company registered in USA and is working from Nepal (and pays taxes there) claim Full time work experience after working there for a year?

This is the case for me. I get my salary (on papers, contract fee) on same time each month through wise transfer, and then do my own taxes and the contract mentioned that it's for a year. I also have an offer letter stating my annual salary, I work 32 hours per week minimum and employer controls all my tech stack and work, and i get fixed agreed upon salary regardless of company's profits or loss. The only problem is that the contract explicitly mentions that I am an independent contractor and not an employee (neither am i entitled to any of it's benefits), so can i prove my employer-employee relationship, and do i need extra documents?

Thanks.

 

[iSaidGoodDay]

So can an independent contractor, who works at a company registered in USA and is working from Nepal (and pays taxes there) claim Full time work experience after working there for a year?

This is the case for me. I get my salary (on papers, contract fee) on same time each month through wise transfer, and then do my own taxes and the contract mentioned that it's for a year. I also have an offer letter stating my annual salary, I work 32 hours per week minimum and employer controls all my tech stack and work, and i get fixed agreed upon salary regardless of company's profits or loss. The only problem is that the contract explicitly mentions that I am an independent contractor and not an employee (neither am i entitled to any of it's benefits), so can i prove my employer-employee relationship, and do i need extra documents?

Thanks.

You can claim work experience as a self-employed person. You are not employed by the said employer in your case. You should read more about how to claim this experience and apply as a self-employed person through EE.

 

[superNova9]

Hello,

Since 2017, I was working for a company in US when I got accepted for the Express Entry in 2019, I moved to Toronto and I registered a Corporation in Ontario with Triple M Accounting firm based in Toronto. The firm has taken care of the corporation books and I have been working as an employee for newly created corporation. The corporation has a contract with the US company I was previously working for and I am registered as an employee for the corporation. I have been receiving T4 for all the subsequent years and all taxes have been paid throughout, both the company and myself. In 2023, the contract with my US client got over and I have also been working remotely from India since 2021 as I had to take care of family during the pandemic. So overall, I have an experience of around three years, but does this experience fall under the Canadian Work Experience and could I use this for Canadian Experience Class (CEC) or for the Express Entry? I am applying again for the PR as my previous PR got over last month in August 2024.

Theres a lot of good information throughout the thread and if anyone could provide some clarity as to how move forward in my case, I'd highly appreciate it.

Sincerely,
Nova

 

[Naturgrl]

Hello,

Since 2017, I was working for a company in US when I got accepted for the Express Entry in 2019, I moved to Toronto and I registered a Corporation in Ontario with Triple M Accounting firm based in Toronto. The firm has taken care of the corporation books and I have been working as an employee for newly created corporation. The corporation has a contract with the US company I was previously working for and I am registered as an employee for the corporation. I have been receiving T4 for all the subsequent years and all taxes have been paid throughout, both the company and myself. In 2023, the contract with my US client got over and I have also been working remotely from India since 2021 as I had to take care of family during the pandemic. So overall, I have an experience of around three years, but does this experience fall under the Canadian Work Experience and could I use this for Canadian Experience Class (CEC) or for the Express Entry? I am applying again for the PR as my previous PR got over last month in August 2024.

Theres a lot of good information throughout the thread and if anyone could provide some clarity as to how move forward in my case, I'd highly appreciate it.

Sincerely,
Nova

Experience has to be IN Canada for CEC. It will state that on the IRCC CEC requirements.

 

[superNova9]

Thanks for the prompt reply. So you are stating that the work experience is tied to me being physically present in Canada and the work experience would not be considered as Canadian Work Experience if I was to be working remotely for the corporation. In my case, I do have a year of working from Canada before I decided to work remotely, so would I be able to show that I had atleast a year of Canadian Work Experience?

Also, if this experience cannot be used for CEC, would this experience be useful for Express Entry and would they consider it as a relevant work experience considering it is still a Canadian corporation and I am an employee of it?

 

[Naturgrl]

Thanks for the prompt reply. So you are stating that the work experience is tied to me being physically present in Canada and the work experience would not be considered as Canadian Work Experience if I was to be working remotely for the corporation. In my case, I do have a year of working from Canada before I decided to work remotely, so would I be able to show that I had atleast a year of Canadian Work Experience?

Also, if this experience cannot be used for CEC, would this experience be useful for Express Entry and would they consider it as a relevant work experience considering it is still a Canadian corporation and I am an employee of it?

You can use experience as foreign. For CEC, from the IRCC site:

You must

• have at least 1 year of skilled work experience in Canada (or an equal amount of part-time work experience) in the 3 years before you apply
• have gained your work experience by working in Canada while authorized to work under temporary resident status
• show that you performed:
  • the actions in the lead statement of the occupational description in the National Occupational Classification (NOC)
  • most of the main duties listed

 

[superNova9]

Thank you again. From June 2019 till Oct 2020, I worked in Toronto as a software developer (NOC code 21232) which falls in the TEER 1 category of occupations, so wouldn't that hold as a year of skilled work experience in Canada?

So here's my life's conundrum, I already have the three years of foreign work experience which entails the 50 points and I need this Canadian work experience to get my points above the last CEC cutoff of 508.

 

[scylla]

Thank you again. From June 2019 till Oct 2020, I worked in Toronto as a software developer (NOC code 21232) which falls in the TEER 1 category of occupations, so wouldn't that hold as a year of skilled work experience in Canada?

So here's my life's conundrum, I already have the three years of foreign work experience which entails the 50 points and I need this Canadian work experience to get my points above the last CEC cutoff of 508.

You don't qualify for CEC since your work experience was longer than 3 years ago. To qualify under CEC, you need a full year of work experience in Canada and that full year of work experience must fall within the last 3 years.

 

[superNova9]

That makes sense. Thank you for all your help.