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Self-employeed? HELP

N.Calgary

Full Member
Apr 30, 2012
36
0
Hello,

I am applying under the CEC and I am confused on the Self-employeed term found on Schedule 8. I am a contractor that have my own incorporation registered. However, I am wroking through a contracting company for a one company. My T4 are under my incorpation name. so my question is am I self-employeed? and if I am am I eligable to apply under CEC?

Please advise
 

Hopefulagain

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Apr 20, 2012
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N.Calgary said:
Hello,

I am applying under the CEC and I am confused on the Self-employeed term found on Schedule 8. I am a contractor that have my own incorporation registered. However, I am wroking through a contracting company for a one company. My T4 are under my incorpation name. so my question is am I self-employeed? and if I am am I eligable to apply under CEC?

Please advise

This is their nmost unclear requirement and I sympathize with your concern as I had the same. From what I understand....


1. if you are incorporated, you will not get a T4 but have to file for a T4A.if that is the case, then you are self employed and not eligible (then again, its a maybe)

2. Do you work for 2-3 companies at a time or are you working for just one company, 37.5 hours a weeks, 365 days a year?

3. Do you work out of the company's office or do you work from home? do you have a 9-5 job or do you work your own hours? if its true for any of the above, i think that is counted as self employed and thereby ineligible.

CIC is not very clear here and hence the confusion. Also will the company give you a letter saying that you have been employed by them since (your start date) and list your duties and hours week a week. generally, if the company does not agree to give that due to whatever reason, it should send the warning bells ringing.

Now, i am not an expert at this and this is just my opinion. The onus is on us to prove to the VO that we were employed full time (it doesnt matter if you are on contract or permanent) but one has to be an employee and these are the distinguishing factors (at least for me).

Good Luck
 

N.Calgary

Full Member
Apr 30, 2012
36
0
What did you do? Since you have the same concern. I am really confused with this as I am not sure if I should check the box self-employed in Schedule 8 form or not? and plus they didnt have a define definition in the Guide for this?
 

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If your T4 is from your corporation, you will need a Letter of Reference from your corporation. Who will write the letter of reference, you? I'd say, even if "business owner and employee of own business," even if technically distinct from self-employed, would still be understood as self-employed, for that reason.

http://www.servicecanada.gc.ca/eng/ei/information/self_employed.shtml

Types of self-employment

The Income Tax Act of the CRA defines a business and other related arrangements. Here are some types of self-employment that are not usually insured under the EI Program.

A self-employed worker is an independent worker who contracts services to companies or individuals, controls his or her own working hours and usually does not own the business.
A sole owner directs all the activities of the business, assumes all authorities and obligations, and is personally liable for its business debts. A sole owner may hire someone to run the operation.
A partner pools resources with one or more people to operate a business for profit. Partners are jointly liable for the partnership's obligations and debts.
A co-adventurer in a business, regardless of the legal form of the business, has an interest in it with others and is involved personally in activities deemed necessary for its operation. It makes no difference whether the business is registered or incorporated. This interest in the business can take many forms, from money given or invested to an expectation of gaining from the profits.

In a corporation or limited company, a person who controls more than 40% of the voting shares is not necessarily self-employed, but is still considered uninsurable under the EI Act.

If you are not sure of your status as a self-employed person or if you need more information, you should contact your Service Canada Centre or the CRA .
 

Hopefulagain

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Apr 20, 2012
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N.Calgary said:
What did you do? Since you have the same concern. I am really confused with this as I am not sure if I should check the box self-employed in Schedule 8 form or not? and plus they didnt have a define definition in the Guide for this?
are you getting a T4 from your employer or agency??? Can you get a reference letter from your company and/or agency? i think the reasoning behind the letter is some third party (a company) confirming that we have worked for 1 year (or 2 years) and 37.5 hours a week. it gives some credibility. thats why self-employed is not accepted for who will provide the reference?? us??? that's conflict of interest, right??

I think if you get a T4 wherein the box 14 is filled with employment income and the employer's name is listed as your company or the agency, you should be good. Compiling this with a reference letter should get the issue sorted. from what i have been reading in this forum, it is the reference letter that aligns all the ducks in a row.

again, these are my personal opinions. i would really recommend you calling up the CIC helpline for some responses. Call up 3 or 4 times in a week at different hours and see what responses you get. if all of them say the same thing, then in all probability thats what would be valid. they can also email you the source of their information.

be patient and be sceptical. cos remember that we have to prove to the VO our eligibility. question everything that you are submitting and try to find any loose ends. then try to tie them up. also, use this forum a lot, sometimes you will be surprised at what you learn here.

Good luck.
 

N.Calgary

Full Member
Apr 30, 2012
36
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Yes my T4 says the income and the employee's name as myself and it shows the Employer's name as my own incorporation. However, I did got reference letters from the company that I am working at clearly indicates that I am working full time 40 hours a week but with no benefits from the company. I also got a reference letter from my third party consulting company states that i am on a contract with the company i work at through them and that i am working 40 hours a week with $$ per year.
This is really confusing, so now if that is good then shall i check the box in the Schedule 8 form when it says "have you been self-employed"???
 

Machoman2009

Member
Nov 13, 2009
11
0
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
 

Sris81

Newbie
Oct 29, 2012
3
1
Hi,
I came to Canada in Sept 2009 and graduated in MBA from University here (in Ontario) in 2011. I am on open work permit till 2014.

I work as an incorporated vendor at a technology firm. An HR agency helped me to get my incorporated business number. The technology firm pays the agency and my incorporation gets paid from agency. I have been working in this firm from Sept 2011 till date. I can get a reference letter from both Technology firm and from the agency. Couple of my colleagues who work under the same arrangement applied for PR under CEC and they got rejected.

Please let me know whether I am eligible to apply for PR through CEC or should I apply through Ontario Provincial Nominee Program.

If I am eligible to apply PR through CEC, please let me know what are the documents I should submit.

Thanks and appreciate your guidance.