Contractor with Incorporated company

[bipinchacko]

Hi Everyone,

I've finished my studies as an International Student on Dec 2011 and got PGWP on Jan 27,2012. I started working for Scotiabank from March 2012 as a contractor.
Here is the thing, I registered an incorporated company and hired by another agency to work for Scotiabank and now I'm working for Scotiabank through the agency. I'm getting paid biweekly through the agency to my company account.
That means, Scotiabank is paying to the agency and agency is paying to my company. My agreement with the agency is clearly mentioning my name and my company name and I've to work for Scotiabank.
I read from the different topics that self employed is not eligible for CEC. But since I've an incorporated company and I can provide letter from my agency and Scotiabank do anybody think that I can apply through CEC?

 

[passingby]

Do u have a T4 or T4A?

 

[kamaleddin]

Hi Everyone,

I've finished my studies as an International Student on Dec 2011 and got PGWP on Jan 27,2012. I started working for Scotiabank from March 2012 as a contractor.
Here is the thing, I registered an incorporated company and hired by another agency to work for Scotiabank and now I'm working for Scotiabank through the agency. I'm getting paid biweekly through the agency to my company account.
That means, Scotiabank is paying to the agency and agency is paying to my company. My agreement with the agency is clearly mentioning my name and my company name and I've to work for Scotiabank.
I read from the different topics that self employed is not eligible for CEC. But since I've an incorporated company and I can provide letter from my agency and Scotiabank do anybody think that I can apply through CEC?

Make sure to pay your self from your company in a payrol. That way your company can issue t4 FOR YOU. Consult an accountant for this. Make sure to include your articles of incorporation in your application. Also ask scotiabank to give you a reference letter detailing your duties. Ask for another reference letter from your recruiter. include a copy of your contract in your application.
The tricky part is paying yourself a reasonable money that makes sense with your NOC. the downside is that way you can't benefit for all the tax loopholes that you can use with your incorporation. such as tax deferrals, loans, business expenses and etc.

I would consult a lawyer for 1 hour to make sure if you really need to pay yourself from your company or e.g. dividends can work as well.

These are tricky questions and all depends on how much money you are making and what's the best method to maximize your tax saving.

What CEC asks in the application is t4 and If the lawyer says you need a t4 then you have no choice other than a payroll.

What you have to remember that you corporation is not you. They are two different things. So when you claim your company blah has made $150k in 2012, this doesn't mean that you have earned a penny. That's why I think you need a payroll.

btw, having a corporation is different than self employed. You can hire yourself through your company when you pay yourself a salary.
When someone is self employed they still fill out a T1. but when you have a corporation you also fill out your T2 forms.
then when you pay your self a salary you can't claim that your are self employed in your t1 any more. Basically your corporation will be paying CPP, EI and income tax to the government.

I am a contractor myself but I started contracting after I applied for my CEC just to be safe.

 

[rus66958]

i was a contractor in 2011 and my agency provided a T4 for 2011... so working as a contractor I think is no issue as long as you agency privdes you T4.

 

[kamaleddin]

i was a contractor in 2011 and my agency provided a T4 for 2011... so working as a contractor I think is no issue as long as you agency privdes you T4.

Your case is different. Your agency is paying you. Not your company. Totally different worlds.

 

[rus66958]

i was a self proprietor, and I had a name for my services which ws same as my name, and the agency was paying it to my company name, they issued me a T4 and I have used the same T4 to file my tax.

 

[kamaleddin]

i was a self proprietor, and I had a name for my services which ws same as my name, and the agency was paying it to my company name, they issued me a T4 and I have used the same T4 to file my tax.

again sole proprietor is different than corporation.
For Sole proprietorships and partnerships:
"Self-employment income is reported on the T1 General return on line 135 to line 143 and may be earned from a business you operate yourself as a sole proprietorship or with someone else as a partnership."

However if you have a corporation, similar to me and bipinchacko, no one pays you! Your company charges your recruiter. You have to submit an invoice to your recruiter and also charge them HST. This means you should have a HST number. At the end of the fiscal year of your corporation you have to pay T2 which is corporate tax.
When you have a Corporation you DO NOT get a t4 from your recruiter.
again as I have mentioned it's a different world than yours.

 

[bipinchacko]

Hi kamaleddin,
Thank you so much for your response. You got PR in the same way? Can you give me your email address or contact number?

 

[alre]

Dear Kamaleddin,

I have a kinda same question as the one u asked a while ago: At which state (after receiving the file number? medical?...) my tuition will be domestic (U of T) ?
I was hoping u could help me with this.

Tnx in advance,

 

[Andy2109]

Students or their parents or spouse who are permanent resident applicants are eligible for domestic fees only if they have received communication addressed to the primary applicant from Citizenship and Immigration Canada which has one of the statements below. Please note that only letters with one of these exact statements can be accepted :

"It has been determined that you meet the eligibility requirements to apply for permanent resident status as someone who is in the live in caregivers in Canada class, or as someone who is the spouse or common-law partner of a Canadian citizen or a permanent resident, or as someone who is a Protected Person."
or
"We have completed the initial assessment of your application and expect to finalize your application without a personal interview."
or
"This refers to your application for permanent residence in Canada, Your interview has been waived."
or
"This refers to your application for permanent residence within Canada on humanitarian and compassionate grounds."
or
"The Minister of Citizenship, Immigration and Multiculturalism issued instructions which were published in the Canada Gazette on November 5, 2011. These instructions specify that applications from international students who are currently enrolled in a PhD program, or foreign nationals who have completed a PhD program, in a recognized educational institution located in Canada and that are accompanied by the results of the principal applicant’s English or French language proficiency assessment are eligible to be processed in the Federal Skilled Worker class.

 

[alre]

Thank you so much Andy for your complete response.
So this sentences do not count??:S They're close!! :S "This refers to your application for permanent residence in Canada under the Canadian Experience Class. Upon review of the information you have provided, your application is considered complete based upon the requirements of the Instructions and Regulation 10 of the Immigration and Refugee Protection Act (IRPA)."