Fema Employment
On what specific income does the Canadian government calculate Income Tax ?
For the first five months of 2006 I on Welfare Assistance in Ontario, and received about $ 2600 from January until June , but then I moved to Quebec, and earned $8,500 until the end of the year at a self-employed job. Will the Canadian government look at that as a total of $ 10,600.00 total earnings to be taxed , or will I only be taxed on what I earned by my work ?
Public Comments
- Hi Gaura, as far as the government is concerned, they look at all of your income for the purposes of calculating tax credits, such as the GST, Child Tax Benefit and provincial tax credits. However, with regards to what part of your income is taxable, the monies you received from social assistance in Ontario on form T5007 are NOT taxable for federal or provincial tax purposes. With respect to your self employment, you are required to remit CPP to CRA based on your net self employed earnings. If you earned $8,500.00 self employed in 2006, and had no expenses to deduct against this income, then the CPP payable to CRA is $841.50. Self employed proprietors pay both CPP portions to CRA, CPP is calculated based on an annual exemption of $3,500.00 and anything over that is multiplied by 4.95%, for each employer/employee portions. I hope this information helps you.
