Can you not have tax deducted from paycheques?

[Super_Geo]

Can you tell your employer not to take any tax off of your pay and pay it all when you do your taxes at the end of the year?

[max_boost]

Yes.

Ask your employer.

[icecreamvan]

I'm quite sure that the answer is no unless you are a contractor. IIRC, as a contractor, you have to prove that you are independent (ie. contractor for more than one company, not included in company sponsored functions, etc). Otherwise, the company is liable for your portion of their regular remittance.

[BrknFngrs]

I've done it, though it related to me being a student and having a relatively low income.

[icecreamvan]

Originally posted by BrknFngrs
I've done it, though it related to me being a student and having a relatively low income.

IIRC they can get around that by saying that you're not going to be making over the basic exemption limit.

[BrknFngrs]

Originally posted by icecreamvan


IIRC they can get around that by saying that you're not going to be making over the basic exemption limit.

Exactly, since I was not making the basic exemption amount I was able to get my full paycheques, as opposed to getting a refund at the end of the year.

[z1_bam]

your employer will be responsible for ei and cpp deductions based on your employment with their business, but not your income taxes, ie. you dont have to have them withold and remit your income taxes off your paycheques

EDIT: I lied, kind of... just made sure to ask to be sure and it turns out you actually dont have to have your employer make the deduction but you need to give your employer a letter stating your reason for not wanting income tax withheld which is forwarded to canada revenue and then everyone is happy :thumbsup:

[Xtrema]

What kind of benefit would an employer have to do it this way?

[Super_Geo]

Originally posted by z1_bam
EDIT: I lied, kind of... just made sure to ask to be sure and it turns out you actually dont have to have your employer make the deduction but you need to give your employer a letter stating your reason for not wanting income tax withheld which is forwarded to canada revenue and then everyone is happy :thumbsup:

Nice! I don't want taxes taken off because I'd rather throw it into a mutual fund and then pay off my taxes when they're due (almost a year and a half later) and keep the interest. Haha I wonder if the CRA would be ok with that if I put that in a letter...

[icecreamvan]

Originally posted by z1_bam
your employer will be responsible for ei and cpp deductions based on your employment with their business, but not your income taxes, ie. you dont have to have them withold and remit your income taxes off your paycheques

EDIT: I lied, kind of... just made sure to ask to be sure and it turns out you actually dont have to have your employer make the deduction but you need to give your employer a letter stating your reason for not wanting income tax withheld which is forwarded to canada revenue and then everyone is happy :thumbsup:

I took a peek at the CRA website. You'd have to have one of the listed reasons.

http://www.cra-arc.gc.ca/tax/business/topics/payroll/calculating/incometax/reducing/authority-e.html

It doesn't make sense for CRA to allow people to pay their own income taxes once a year. That would be a collections nightmare. Plus the lost revenue from not having the money earlier.

[Supa Dexta]

Hrmm.. When I started with this new company I believe they gave us the option to hold our own money and invest and worry about our own taxes when the time comes, should we want to.. But we have a ton of consultants. so I can't say for sure if it's available for everyone...

it's also not their money until it's due I thought, why should they get it early to invest when you can..

[sputnik]

Originally posted by icecreamvan
the company is liable for your portion of their regular remittance.

This happened at a company that I worked for.

Some contractors weren't making their regular tax payments and the government went after the company issuing the cheques.

[icecreamvan]

Originally posted by Supa Dexta
Hrmm.. When I started with this new company I believe they gave us the option to hold our own money and invest and worry about our own taxes when the time comes, should we want to.. But we have a ton of consultants. so I can't say for sure if it's available for everyone...

it's also not their money until it's due I thought, why should they get it early to invest when you can..

That company might ask you to incorporate yourself or get a numbered company.

[Euro838]

You do realize that if you incorporate yourself you'll lose all benefits from the company i.e. health/dental, stat holidays, vacation, etc.

It's not worth it unless you have coverage for the benefits. Just follow the process like everyone else!

[icecreamvan]

Originally posted by Euro838
You do realize that if you incorporate yourself you'll lose all benefits from the company i.e. health/dental, stat holidays, vacation, etc.

It's not worth it unless you have coverage for the benefits. Just follow the process like everyone else!

Yes, but that usually absolves the company of any liability on their side, plus they pay you a premium to forgo those benefits. A major disadvantage is that you're usually the first to go when business is bad.

[sputnik]

Originally posted by Euro838
You do realize that if you incorporate yourself you'll lose all benefits from the company i.e. health/dental, stat holidays, vacation, etc.

It's not worth it unless you have coverage for the benefits. Just follow the process like everyone else!

Most people that incorporate themselves get compensated with additional pay to cover the difference.

When I incorporated I got a 30% wage increase which easily covered my 4 weeks vacation, stats and other benefits.

[clem24]

The answer is NO. Incomes taxes MUST BE DEDUCTED unless you are a contractor.

http://www.cra-arc.gc.ca/tax/business/topics/payroll/calculating/incometax/remuneration-e.html

[Super_Geo]

Originally posted by clem24
The answer is NO. Incomes taxes MUST BE DEDUCTED unless you are a contractor.

http://www.cra-arc.gc.ca/tax/business/topics/payroll/calculating/incometax/remuneration-e.html

That's pretty disappointing... this, on top of paying $2000/year into a pension plan I will never see a penny out of... fuck :(

[JordanLotoski]

your employer can do that for you, but if you pay more then 2000.00 in taxes you will have to make quaterly installments after the first year. so its pointless to even do that.