CEC Self Employed/Contract

[EastYorker]

Hello Everyone

I'm an inland applicant. I've recently uploaded my express entry profile (491 score) and have been Invited To Apply under the CEC programme.
My qualifying Canadian experience of 1 year is a 'subcontractor job', where I invoice and get paid with HST, and am required to pay my own taxes. The thing is, this ' job' actually functions like a regular office job, where I have to be at the office address from 9-5, must have all decisions approved by my boss, do not have the freedom to hire other subcontractors or solicit other clients. Also, my boss has given me paid casual and paid sick leave. She also provides the tools and software that we need to work. But, yes I don't get a T4 and no taxes are deducted.
I read the ' employer-employee' relationship guidelines from the CRA and on the CIC page and was therefore sure that I could prove that I am in such a relationship, therefore would not be considered self employed.

But now I feel unsure. Anyone in the same boat? Did anyone have such a situation and get their PR succesfully?

I am wondering if I should tick this 'job' as self employed, which would make me ineligible for CEC, and apply under FSW instead. If I discount the Canadian experience, I get 443 points...and the minimum cut off in my round was 440, therefore I could still apply.

But,would I be able to apply under FSW if I have an invitation to apply under CEC?I'm afraid to decline this ITA and wait for the next round as with just 443 points, don't know if I could make it in the next one.

This forum has helped a lot in the past and I look forward to some answers and a little help from you wonderful people! Please help.

 

[newbutterfly]

I was in a similar position like you and it was tricky. I decided to push for my employer to employ me and waited for one year to apply. My advice to you is this:

Outline all the criteria that CIC uses to decide on the employer-employee relationship. In a bulletpoint format, explain how you meet the requirements for each criteria.

Secondly, you could ask the CRA to make a determination of the relationship between you and your employer. This would involve a hearing and your employer’s involvement as well. If CRA determines you were an employee, they would mandate your employer to pay all taxes and EI owing and your employer may terminate your employment as a result.

I am not sure if you can claim ‘Canadian work experience’ under a category made for ‘foreign work experience ‘ because Canadian experience is not foreign. However, I am saying this based on technicality alone and this may not necessarily be true so please feel free to seek input from others.

In other words, I would advice you to apply under CEC, provide a detailed explanation on how you meet each employee criteria, and attach any supporting documents e.g emails that you may have.

Good luck!

 

[EastYorker]

Thanks a ton newbutterfly for your reply! I think I am going to take your advice and go ahead with the CEC route, as I was leaning towards that myself.

I know this a rather complicated query, so other responses to this are much welcomed and appreciated as well.

Thanks!

 

[QuestforPR]

Hi

I am in the same situation as yours, I was hired by an agency and provide services to the company as a contractor as software engineer paid on an hourly basis where I invoice and get paid with HST. I pay my own taxes and therefore do not have T4 slips.

Question is

• Will I be considered as self-employed (if so then it makes me ineligible to apply for express entry)
• Am I eligible to apply PR under express entry?
  
• if my profile gets selected, what are the supporting documents I have to provide (like my invoices/ bank statements/ personal tax info etc)

Please help me on this by providing your valuable response. Thanks

 

[newbutterfly]

Hi

I am in the same situation as yours, I was hired by an agency and provide services to the company as a contractor as software engineer paid on an hourly basis where I invoice and get paid with HST. I pay my own taxes and therefore do not have T4 slips.

Question is

• Will I be considered as self-employed (if so then it makes me ineligible to apply for express entry)
• Am I eligible to apply PR under express entry?
  
• if my profile gets selected, what are the supporting documents I have to provide (like my invoices/ bank statements/ personal tax info etc)

Please help me on this by providing your valuable response. Thanks

To determine whether an employment relationship was a contract for services or a contract of services, there are certain questions you need to answer.

1) what is the degree of control your employer had over your work? Could he dictate the way you went about your tasks? If the answer is no, you are self employed.

2) Can your work be delegated? I.e can you give a friend your work to do or can you hire someone to assist with your work? If yes, you are self employed.

3) Did your employer give you your working materials? E.g laptop, lunch, a desk in the office, notepads, printers, the usual things you get during the onboarding process? If no, you are self employed
Basically, who owns the tools you use to carry out your work?

4) Does your employer dictate your hours of work? E.g 9-5, 8-4 etc. If no, you are self employed.

Note that the final discretion lies with the officer in determining whether or not you are an employee and CRA’s decision will only be persuasive.

 

[Luciana Garcia]

@EastYorker
Hi, do you have the result to your application? My husband is on the same boat as you...

 

[EastYorker]

Hello Luciana,
I decided, finally, to submit my PR application under the FSW program....as even though I was in an employer--employee relationship....proving that for the CIC....may have attracted the ire of the CRA....and I did not want to risk that for my employer.
Our PR application is still under process....but they have granted us a bridging open work permit, which is good news...so hopefully it should work out.
I suggest, if your husband/you can apply under FSW...then go that route.
If not, and you are ineligible without the 1 year of Canadian work experience, it would be a good idea to have a convo with an immigration consultant and then your husband's 'employer'
Hope this helps.

 

[Island_vibes]

Hello Luciana,
I decided, finally, to submit my PR application under the FSW program....as even though I was in an employer--employee relationship....proving that for the CIC....may have attracted the ire of the CRA....and I did not want to risk that for my employer.
Our PR application is still under process....but they have granted us a bridging open work permit, which is good news...so hopefully it should work out.
I suggest, if your husband/you can apply under FSW...then go that route.
If not, and you are ineligible without the 1 year of Canadian work experience, it would be a good idea to have a convo with an immigration consultant and then your husband's 'employer'
Hope this helps.

Hi EastYorker,

Greetings! I hope u will get your PR. Question : what's the timeline in receiving your bridging work permit. How long did it take? Many thanks

 

[Thank]

I am in the same boat.I have completed an year as self-employed and now my employer hired me as regular employee.I have worked on a basis of employee and employer relationship.I didnt create my express entry profile yet.Am I still elgible to apply under CEC?

 

[Queenslander88]

I am in the same boat.I have completed an year as self-employed and now my employer hired me as regular employee.I have worked on a basis of employee and employer relationship.I didnt create my express entry profile yet.Am I still elgible to apply under CEC?

Hey, yes you ca still apply. Go see a consultant, if you in Toronto, meet Alex Davidson from Canadian Immigration channel mate.
He`s legit, just go speak to him.. he helped so many IT contractors

 

[Thank]

Thank you so much.you are an angel who brought light to my life.

 

[Queenslander88]

Thank you so much.you are an angel who brought light to my life.

lol lol..no worries mate.. you will see many posts here saying you cannot claim, just ignore mate.
Just shoot this guy an email like the free assessment....
Good luck!

 

[Thank]

Thank you.

 

[jes_ON]

Hey, yes you ca still apply. Go see a consultant, if you in Toronto, meet Alex Davidson from Canadian Immigration channel mate.
He`s legit, just go speak to him.. he helped so many IT contractors

This is a very nice video on how to prove self-employment experience,, which IS accepted when it is foreign work experience. However, self-employment is specifically excluded as Canadian experience. If you prove you are self-employed in Canada, you only prove that the experience does not count.

 

[Copingwithlife]

Hello Everyone

I'm an inland applicant. I've recently uploaded my express entry profile (491 score) and have been Invited To Apply under the CEC programme.
My qualifying Canadian experience of 1 year is a 'subcontractor job', where I invoice and get paid with HST, and am required to pay my own taxes. The thing is, this ' job' actually functions like a regular office job, where I have to be at the office address from 9-5, must have all decisions approved by my boss, do not have the freedom to hire other subcontractors or solicit other clients. Also, my boss has given me paid casual and paid sick leave. She also provides the tools and software that we need to work. But, yes I don't get a T4 and no taxes are deducted.
I read the ' employer-employee' relationship guidelines from the CRA and on the CIC page and was therefore sure that I could prove that I am in such a relationship, therefore would not be considered self employed.

But now I feel unsure. Anyone in the same boat? Did anyone have such a situation and get their PR succesfully?

I am wondering if I should tick this 'job' as self employed, which would make me ineligible for CEC, and apply under FSW instead. If I discount the Canadian experience, I get 443 points...and the minimum cut off in my round was 440, therefore I could still apply.

But,would I be able to apply under FSW if I have an invitation to apply under CEC?I'm afraid to decline this ITA and wait for the next round as with just 443 points, don't know if I could make it in the next one.

This forum has helped a lot in the past and I look forward to some answers and a little help from you wonderful people! Please help.

On occasion an employer will hire someone that fits into the employee description,but slot them into the self employed box so they do not have to pay payroll taxes, file T4, file a ROE. If you feel that you fulfilled all the responsibilities of an employee but have been categorized as self employed, you could request a ruling be done. You would fill in the following form and send it in. You cannot just tell the IRCC you feel you are an employee, a ruling must be done to be official in the eyes of the government

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

Be aware there is a deadline for filing such a request. For the 2018 year, the deadline to file is June 30 2019, so in about three weeks. Either the employer or employee can request such a ruling.
The CRA will contact both you and the employer. If you were indeed an employee, the employer would now owe any back payroll taxes, CPP, EI to the Federal Government, and possibly subject to penalties and interest, and possibly could have their account be subject to a Trust Exam to ensure no other self employed individuals are being treated as self employed, when they should actually be categorized as employees. Penalties are severe
On the flip side, if you were actually a employee versus self employed, and have been submitting the HST and getting any credit for the ITC's on your HST return, you would no longer need a HST account, and any refunds if any, would now be clawed back. In a nutshell, your RT account would have to be sent off to a tax centre to review, and then be closed. You would more then likely have to do this in writing since it would be a complicated affair.
You had mentioned you did not want to risk anything to the employer. They are duty bound to submit any payroll taxes to the Government when applicable. Any work you would have done when self employed, would not be insurable. In short if you were to loose your job, get sick you would not be eligible for any benefits under the Employment Insurance Act (EIA)