URGENT HELP - CEC Experience - Contract Job

[rahulsrm]

Hello Guys,

I was going through several blogs this morning and got confuse about the valid job experience in CEC category of express entry.

Here is my brief situation and would appreciate any comments/thoughts from you.

I am working as an independent contractor for a contracting agency in Ontario. This agency is further charging a Client (where I actually sits and work), I get paid from Agency and not directly from client.

I am currently on PGWP, and working for this agency for almost a year. As I am about to complete a year, I am planning to submit my profile for PR in CEC category of express entry. Many people/blogs says that my experience is not valid as it will come under "Self-Employment", but I am not sure as I got paid in a little different way from what other contractors generally get paid.

This agency deduct my CPP and EI but not the Taxes, they are also going to issue me a T4 for this period. So to support my experience i would be having the

I don't have a HST number.

1. Payslips (with Cpp and EI deductions)
2. Reference Letter from Agency stating my job duties in NOC category A
3. T4 issue from Agency.

Whats your thought, would my experience will be counted as a valid work experience from CIC?

Please share your valuable comments/thoughts.
Thanks

 

[swar12894]

Do you have like an actual written contract which states that the number of hours you are allowed to work each week? or your hours is not fixed/on call type of work?

If you have a contract or any written agreement then you are most likely an employee and you can claim that towards CEC work experience.

Don't stress about the tax part on the payslips as it might just be that you have checked "Total income less than total claim amount" in TD1 form so your employer is not deducting any taxes but you'll be on the hook for taxes when you file last year's tax return. https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/td1/td1-19e.pdf

Also, check this guide https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4110/employee-self-employed.html

 

[jes_ON]

I was going through several blogs this morning and got confuse about the valid job experience in CEC category of express entry.

Here is my brief situation and would appreciate any comments/thoughts from you.

I am working as an independent contractor for a contracting agency in Ontario. This agency is further charging a Client (where I actually sits and work), I get paid from Agency and not directly from client.

I am currently on PGWP, and working for this agency for almost a year. As I am about to complete a year, I am planning to submit my profile for PR in CEC category of express entry. Many people/blogs says that my experience is not valid as it will come under "Self-Employment", but I am not sure as I got paid in a little different way from what other contractors generally get paid.

This agency deduct my CPP and EI but not the Taxes, they are also going to issue me a T4 for this period. So to support my experience i would be having the

I don't have a HST number.

1. Payslips (with Cpp and EI deductions)
2. Reference Letter from Agency stating my job duties in NOC category A
3. T4 issue from Agency.

Whats your thought, would my experience will be counted as a valid work experience from CIC?

See this publication (I realize that you are likely not speaking about this company, but it is good information) - http://resources.dg.ca/media/109892/employee vs contractor.pdf

If the agency says that you are an independent contractor and not an employee of the agency, then the work experience is not eligible. Likely you will get a T4A instead of a regular T4.

Sorry, this is a hard lesson to learn. Hopefully you have another year or 2 on your PGWP, wishing you success in finding eligible employment. Perhaps the client company...? You could request a ruling from CRA as to the correct status (see the link provided by swar12894). Note that if you do this, the agency will not be happy with you, suggest you find new employment first If the ruling is that you were in a de facto employer-employee relationship, you could use the experience.

Note that if you earned more than 30K as an independent contractor in any 12 month period, you are REQUIRED to register for an HST number. Your tax return (if you have never filed as an independent contractor) is going to be a challenge, esp. if you did not keep records of your expenses. Would suggest getting professional help if you can afford it.

 

[rahulsrm]

Thank you @swar12894 and @jes_ON for sharing your valuable thoughts.

@swar12894,

Yes, I do have a written contract which states my hourly pay rate, hours per week (37.5) . But my written contract says i am an independent contractor.

The agency is also ready to issue me a reference letter.
I can advise them to mention my:
1. Roles and responsibilities
2. Hours / week (37.5)
3. Pay Rate
4. Start Date and contract end date

I can also tell them to not use the work "Independent Contractor " in the reference letter, do you think that's going to help. Also I receive my payslips from the agency with MY NAME (not any corporation name) written on it biweekly.

My second question is about the CRA ruling process, Do you think i should apply for it now or should I wait until CIC officer ask me for any more supporting documents once I submit my application with this experience.

How long does this ruling process takes?

Thank You

 

[swar12894]

Thank you @swar12894 and @jes_ON for sharing your valuable thoughts.

@swar12894,

Yes, I do have a written contract which states my hourly pay rate, hours per week (37.5) . But my written contract says i am an independent contractor.

The agency is also ready to issue me a reference letter.
I can advise them to mention my:
1. Roles and responsibilities
2. Hours / week (37.5)
3. Pay Rate
4. Start Date and contract end date

I can also tell them to not use the work "Independent Contractor " in the reference letter, do you think that's going to help. Also I receive my payslips from the agency with MY NAME (not any corporation name) written on it biweekly.

My second question is about the CRA ruling process, Do you think i should apply for it now or should I wait until CIC officer ask me for any more supporting documents once I submit my application with this experience.

How long does this ruling process takes?

Thank You

Do you see any mention of vacation pay on your payslips? Because in Ontario it is mandatory to pay 4% in vacation pay to an employee.

When I used to work as "Independent Contractor" I had to give my client/employer an invoice and they would pay me the amount without any deductions like CPP and EI.

 

[rahulsrm]

No, no mention of vacation pay on my payslips, but I do have a line in my written contract which states that, my pay rates $x/hr includes 4% vacation pay.

 

[swar12894]

No, no mention of vacation pay on my payslips, but I do have a line in my written contract which states that, my pay rates $x/hr includes 4% vacation pay.

Vacation pay is supposed to be extra on top of your hourly wage.

It's a complicated situation there are no two ways about it. Maybe talk with your employer and see what they can do OR try to get ruling from CRA but I would imagine that would be a lengthy process and like @jes_ON mentioned your current employer wouldn't be happy with that.

I wouldn't recommend claiming your experience towards CEC without absolutely clarifying your situation with both your employer and CRA.
Even if you get a reference letter from your employer and claim your experience but if CIC asks for your T4 and Notice of Assessment then you'll be in trouble and there are chances that they'll add misrepresentation on your file.

I was in a similar situation as I mentioned earlier and I decided to let go of my six months of experience as an independent contractor.

 

[Pauceci]

Hello everyone ,

I ‘ve been looking everywhere without getting a real answer to my situation. Hopefully you can help me .

I ‘ve applied for PR receiving the ITA, I haven’t submitted my documents yet due to one part of my profile .

I’ve been working for a company since November 2018 ( 1 year and a half ) however, the first 6 months in that company I was contracted by a recruitment agency that provided professional staffing to the company I am . Then after 6 months , the company hired me directly .
In my valid job offer section when I applied I calculated also the 6 months ( as a 1 full work experience ) I have worked for them but the employer was the recruitment agency . However ,in the job offer letter from my company they mention I have been working since 2018.

Is it valid ? ( I received the invitation to apply ITA ,2 weeks prior turning 1 year with my direct contract with the company )

Hopefully, someone can get me and insight in this matter.

 

[pedro65]

Hello everyone ,

I ‘ve been looking everywhere without getting a real answer to my situation. Hopefully you can help me .

I ‘ve applied for PR receiving the ITA, I haven’t submitted my documents yet due to one part of my profile .

I’ve been working for a company since November 2018 ( 1 year and a half ) however, the first 6 months in that company I was contracted by a recruitment agency that provided professional staffing to the company I am . Then after 6 months , the company hired me directly .
In my valid job offer section when I applied I calculated also the 6 months ( as a 1 full work experience ) I have worked for them but the employer was the recruitment agency . However ,in the job offer letter from my company they mention I have been working since 2018.

Is it valid ? ( I received the invitation to apply ITA ,2 weeks prior turning 1 year with my direct contract with the company )

Hopefully, someone can get me and insight in this matter.

Hey, did you apply for PR under CEC? Were you approved? I`m in the same boat working as as Administrative Assistant for 2 Realtors as an Independent Contractor.

 

[pedro65]

Hello Guys,

I was going through several blogs this morning and got confuse about the valid job experience in CEC category of express entry.

Here is my brief situation and would appreciate any comments/thoughts from you.

I am working as an independent contractor for a contracting agency in Ontario. This agency is further charging a Client (where I actually sits and work), I get paid from Agency and not directly from client.

I am currently on PGWP, and working for this agency for almost a year. As I am about to complete a year, I am planning to submit my profile for PR in CEC category of express entry. Many people/blogs says that my experience is not valid as it will come under "Self-Employment", but I am not sure as I got paid in a little different way from what other contractors generally get paid.

This agency deduct my CPP and EI but not the Taxes, they are also going to issue me a T4 for this period. So to support my experience i would be having the

I don't have a HST number.

1. Payslips (with Cpp and EI deductions)
2. Reference Letter from Agency stating my job duties in NOC category A
3. T4 issue from Agency.

Whats your thought, would my experience will be counted as a valid work experience from CIC?

Please share your valuable comments/thoughts.
Thanks

Hey, did you apply for PR under CEC? Were you approved? I`m in the same boat working as as Administrative Assistant for 2 Realtors as an Independent Contractor.

 

[Pauceci]

Hey, did you apply for PR under CEC? Were you approved? I`m in the same boat working as as Administrative Assistant for 2 Realtors as an Independent Contractor.

Hi There, yes, I applied under CEC now I am PR finally. I have a close work permit for just one company so all the experience was related to one employer.

 

[Kash12234]

I need an urgent answer, I got my draw through cec and i already submitted all the required documents. I am on PGWP and I want to quit my job. I also have pr support LMIA which means I got 50 points in express entry because of that. it's not a bonded lmia or on a closed work permit. I am sure i can leave my job but i want to get a professional advice before i go forward with this, please let me know.