Hello everyone, I’m in need of some expert advice. I was a subcontractor back in 2023 for a private health care provider. My income was 21,000. I did not register a business owner with my canada. Now im doing my income tax for that year. Will i be penalized for not registering ?
Also, I was a subcontractor for a food delivery company which I made $6000. What requirements do i need to file these 2 incomes ?
Please help.
You do not need to register until your gross income hits the $30,000 mark at which point you must register for the GST/HST. There will be a penalty for late filing of income tax if you are only filing income tax now. Perhaps you need a bit of bookkeeping help first.
When you say you had income of $21,000 and $6,000, is that before or after expenses? You should probably pay for some expert help to make sure you don’t get into trouble. The earlier you get set up right, the better it will be for you.
For tax purposes, I ditto @obhorst
But, you should also have a business license from your local municipality, and if you are operating a business using a business name (other than your own name - i.e. John Smith), you should register that name with your provincial business registry. In addition, there may be other licensing requirements for health care providers - these would be regulated by your specific accreditation body (depending what kind of health care professional you are). And, depending on the type of work you do, you may be required to register with your provincial “workers compensation board”.
etc
The total income is only take home pay. No deductions claimed. I do have bookkeeping for instacart and home to healthcare. Both with different deductions which will be claimed when I file for both of them separately. I’m relieved to know I will not be penalized due to the amount. Curious at to how much I would have to deduct before paying a high amount back.
We go under the owners name and have our own insurance coverage for each indvidual. Would a subcontractor have to register separately with the workers compensation board ? What specific kind of work require you to do so?
We were solely based as a personal support worker.
Owner of what? If you are a “subcontractor” that means you are self-employed - that is YOU are the owner of YOUR business. You can run a business just with your own personal name.
But, if you are performing services “under” another business, and that business is your ONLY employer, then you are not a subcontractor - you are an employee, and your “employer” is required to withhold and remit source deductions.
In Saskatchewan, you can choose not to register with WCB, but if your employee files a WCB claim, they will pay the employee, and then enforce collection from YOU because you were not paying the premiums as you should have been.
Alternatively, if you are a subcontractor, your client (the main contractor who pays you) can include you in their WCB reporting - you will be covered through them.
It’s not that simple. Even if you only do work for a single entity, you can still be considered a contract worker rather than an employee. It depends on the circumstances.
If I may, it is most likely very beneficial for you to talk to a tax professional.
The forum you inquired on contains tax professionals from accross Canada. We are all well versed in rules pertaining to our geographic region. Some advise regarding biz licenses and worksafe may not apply to your specific circumstances in the region you are from.
When we interview our clients we can ask more direct questions based on your specific answers and we can guide you down the correct path.
Please contact a professional…even if you only ice them 1 year, it is money worth investing.
Rachel
Auto correct…ugh