That's why you need more than one client...at least on paper...
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From what I hear, legitimate expenses aren't really the point. I wouldn't know, I was bad at that.
Seems appropriate
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Is this for software engineering? I though the pay in those roles had gone though the roof since Covid. I read this thread in reddit last week and people were mentioning companies giving their SWE pre-emptive raises of $20-30k just to keep up with market rates.
https://www.reddit.com/r/PersonalFin...r_salaries_in/
Been a contractor from day 1. Moved to staff to get pre-approved for a home. Then went back to contracting after about a year or so.
Personally, I find it more beneficial for me to be contractor salary and tax-wise. As said, it helps alot to have more than one client.
Yeah, you’re not a business unless you’re a business… many people do it, but that doesn’t mean they should
Welp. This calls for a phone call to the accountant.
pro tip: Don't trust people when they tell you anything, even if they are confident.
The test is basically
- Do you have more than one client.
- Are you responsible for purchasing your own equipment.
- Are you responsible for your own training.
And anybody can be incorporated and stay incorporated. The roadblock is whether you can claim the small business deduction. Note that that only affects profits, not revenue. If you're drawing everything out as salary or a mix of income and dividends the savings is not that much. Dividends from your business are considered non-special, so they're basically taxed at your normal rate.
Harper closed virtually all the loopholes, Trudeau closed the rest.
I assume this is not Calgary. Calgary is still depressed. But it's a different tune in US (to a small degree GTA as well), there is a huge effort in retention as there seems to be a a huge game of musical chair going on. Whoever you can't retain, it'll cost you more to rehire. Which makes employees who stuck with you feels like chumps and they looks for another jobs. Vicious circle.
Retention is an hot top among top execs. We had a round of adjustments in July due to some pressure and losses but in no way as lucrative as that reddit post.
The USA has been like that in IT for decades.
It's weird right now. Stackoverflow's latest developer survey said that a lot of people lost their jobs, and a whole bunch of them are saying that they're leaving the occupation permanently.