Contract Vs self employed???

[Hopefulagain]

Hi N.Calgary, spartan18 and calgarylady,

Please note that if you're an independent contractor with your own registered incorporation that issues your T4, you will be considered as self-employed and will not be eligible for CEC.

I was in the same situation when I first applied for CEC in 2010. I was an independent contractor that worked through an agency for a government project. I submitted reference letters from my agency and my project lead in my initial application. I received an email from the visa officer asking for additional documentation to prove my work hours and why I had a T4 from a numbered corporation instead of from my agency or the project I was working on. I wrote an email explaining my situation as an incorporated independent contractor, submitted a bunch of supporting documents, including a breakdown of all my hours from the agency and a letter from my accountant who handles the corporation taxes and helps with issuing a T4. Ultimately, I was refused on the basis that self-employment does not count towards work experience under CEC. I consulted a lawyer about my refusal after the fact to see the possibility for appeal, and she stated that the refusal was rightful.

I posted about this sometime ago on this forum (though I received no reply) - titled need advise for reapplication - previously self-employed.

Last month, I submitted a new CEC application. The only reason I reapplied is because I've become a full-time employee since early 2011.

@ calgarylady - I tried to respond to your private message, but the forum interface wouldn't allow me to. S

Hope this helps!

Hi ZT

What do you mean by numbered corporation??? does this mean that your T4 did not have your agency's name as the employer? Then what was it? Cos I too agree that if the name of the employer on T4 is not the agency/company you are working for and/or the company that is providing the reference letter is not same as that on the T4, it could cause some issues.

Having said that, i think if you are a contract full-time employee then also it is acceptable under CEC. I think they are only having issues if you are an incorporation and pay your own taxes............i think

 

[N.Calgary]

ZT so were you a Canadian post grad when you applied in 2010? This is really confusing because according to the regulation around post grad work permit that we are allowed to be Self-employed.

This is a really complex case and I wish I knew it before as all of my year and half of work now will not be counted!

Thanks for your reply

 

[ZT]

Hi ZT

What do you mean by numbered corporation??? does this mean that your T4 did not have your agency's name as the employer? Then what was it? Cos I too agree that if the name of the employer on T4 is not the agency/company you are working for and/or the company that is providing the reference letter is not same as that on the T4, it could cause some issues.

Having said that, i think if you are a contract full-time employee then also it is acceptable under CEC. I think they are only having issues if you are an incorporation and pay your own taxes............i think

Hopefulagain, I think your situation will make you eligible as you'd be considered a contract employee instead of a self-employed independent contractor.

If you're an incorporated independent contractor, your corporation would be assigned numbers if you choose not to register a name. As an incorporated independent contractor, your agency would pay your corporation, and your corporation would then issue a T4 to you as its employee/owner/whatever-you-choose-your-title-to-be.

ZT so were you a Canadian post grad when you applied in 2010? This is really confusing because according to the regulation around post grad work permit that we are allowed to be Self-employed.

This is a really complex case and I wish I knew it before as all of my year and half of work now will not be counted!

Thanks for your reply

Yes, I held a PGWP when I applied in 2010. I know this is a confusing case for us, but the visa officer would view it simply as “this incumbent is self-employed”, and would easily dismiss the case. Trust me, I went through my own period of frustration (I had close to 2 years of experience!) but finally realized there was nothing I could do… If you’re still interested in applying under CEC, it would be best for you to get a job as a contract/permanent employee.

 

[Machoman2009]

Hey Fellow Forum mates

I need to clarify something. I know that if one is self employed or has worked during OCWP etc, they are not considered eligible for CEC. but what about if someone is working on yearly contracts with an agency????

I am on yearly contracts, i got a T4 which indicated my employment income and there was nothing filled in the employment code box. my agency deducts the taxes, ei and cpp. i dont get benefits from the company but i have to work 37.5 hours a week (which is indicated on my contract) and am paid 4% extra on each paystub to account for 2 weeks of paid holidays. but my contract says contract consultant. so what does this mean??? am i eligible or not?? would i be considered self employed???

some help would be greatly appreciated.

Am in sameboat
Hello Everyone!

I am on open workpermit. I am self-employed with sole proprietor. Recently, I came to know that I will not be eligible for CEC class for PR.
Can anyone provide valuable suggestions on how to get through this hurdle. My case

-working as self-employed with sole proprietor.
-working for a client through agency.

My questions:

Would it help if I am incorporated?
In order to have an incorporation is it required to be a Permanent resident or citizen of canada?
How can I become incorporated?
Can I issue T4 for myself and become eligible for CEC?

OR

Is there any agency that can run payrolls and provide T4 with employment income field filled?

Any suggestions would greatly appreciated.
Thank You