# Employer dose not take taxes off



## katiestorm92 (Oct 22, 2014)

So i have the chance to work for a company ( temp-full time 2 months give or take) but they dont take off taxes. I was told it just works out better for both parties and that they would have to hire us on all full time workers insted of temp. Anyways, my issue is how do i go about getting taxes taken off my paycheck. Id be making roughly 400/week (bi-weekly payments i belive). Do i just put so much away each check and then pay the goverment back come tax season? 

Can anyone give any suggestions?


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## Spudd (Oct 11, 2011)

I'm no tax expert. But my husband is self-employed so he does not have taxes taken off - he just saves 25% of his income in a bank account that he doesn't touch until tax time. Then when you do your taxes, it will tell you how much you owe, and you pay that amount.


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## Homerhomer (Oct 18, 2010)

well it's definitely better for the employer, for you it depends.
Are you an employee or contractor? That will determine if they should deduct the taxes or not, however just because the employer hires you as contractor it doesn't mean they are following the rules as the employee v subcontractor test have to be met. Just because it may be better it doesn't mean it's correct. In most cases and based on what you said you are most likely an employee ;-), and should have taxes deducted as such.

If the current situation continues you will be paying both portions of CPP (employee and employer side) when you file your income taxes (you loose, employer wins), you are not paying any EI, but your income will not count towards EI should you have to apply for it in the near future.
You will need to report this income as business income on the tax return, and not employment income or other income. Reporting it as other income pretty much guarantees audit.
That's in the nutshell. ;-)


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## OptsyEagle (Nov 29, 2009)

Yes. Your employer probably thinks they have the right to decide to call you an employee or self employed contractor, but they do not. In your case they should be withholding taxes, EI and CPP and of course paying their share of EI and CPP. If they get caught, CRA will not go lightly on them. Usually they charge your EMPLOYER not only their share of the EI and CPP that they were supposed to pay, but also your share, since they were supposed to withhold it. That can get expensive for them.

As for you, you can only do what you can do. Declare the income at the end of the year. If you let us know how much money you think you will earn for the whole year and tell us the province you are in, we can probably tell you what percentage you will owe at the end of the year.


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## james4beach (Nov 15, 2012)

When I was a consultant, I recall that if your tax liability exceeds a certain threshold in the year and you're not regularly paying taxes then you're obliged to pay via installments every quarter.

That was the self / professional income situation anyway. The tricky thing there was, yeah nobody forced you to pay taxes continuously, BUT if it turned out you exceeded the threshold and required installments, then you better have paid the installments... otherwise there are penalties.

http://www.cra-arc.gc.ca/E/pub/tg/p110/p110-e.html


> You have to pay tax by instalments for the same reason that most people have tax withheld from their income throughout the year. If you earn income that has no tax withheld or does not have enough tax withheld for more than one year, you may have to pay tax by instalments.


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## lightcycle (Mar 24, 2012)

james4beach said:


> BUT if it turned out you exceeded the threshold and required installments, then you better have paid the installments... otherwise there are penalties.


Yep, I got caught out by that one year. Couldn't understand why CRA was charging me interest on unpaid taxes even though I paid the full amount a few days after getting my assessment back in April. CRA wants their taxes paid quarterly if the annual net taxes due is more than $3000.


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## OptsyEagle (Nov 29, 2009)

This has nothing to do with the installment requirements although they would kick in for this individual, if her status does not change.

The issue is whether she is self employed or an employee. My guess is that she is an employee, however a little more clarity on her duties and responsibilities would help. If this is the case, there are no ifs, ands, or buts. The employer must remit withholding taxes, EI and CPP, and more importantly, pay the employer's share of the EI and CPP. That last part is what this individual is most likely trying to avoid, as well as the very small hassle of processing the remittances to CRA


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## Homerhomer (Oct 18, 2010)

instalments are not an issue if she didn't owe $3000 or more in 2013 or 2012.


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