- Toronto, CA
- ( +1) 647 877-4546
When you’re self-employed, you’re responsible for remitting your taxes to the government. That includes paying income tax and the Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums that you would normally have deducted from your paycheque if you were an employee.
The CPP’s employee and employer components are both due if you’re self-employed. Fortunately, when you file your taxes, you may deduct the portion that your employer pays. In addition, you’ll be required to pay EI premiums, which are not deductible.
You have to pay income tax on your net business income (business income minus business expenses) if you’re self-employed. Every year, you calculate your tax owing and file a personal income tax return.
The CPP’s employee and employer components are both due if you’re self-employed. You are allowed to deduct the employer part of your taxes.
As a self-employed person, you have to remit your income tax, CPP contributions, and EI premiums to the government quarterly. You can make your payments online, by phone, or by mail.
If you don’t make your payments on time, you may be subject to interest and penalties.
Self-employed people must file a personal income tax return every year. The tax return is due on April 30th, but you have until June 15th to file if you’re self-employed.
The Canada Revenue Agency (CRA) has some resources to help self-employed people comply with their tax obligations.
If you’re self-employed, you’re responsible for remitting your taxes to the government. That includes paying income tax and the Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums that you would normally have deducted from your paycheque if you were an employee.
Income tax, CPP contributions, and EI premiums are all payable quarterly. Self-employed people must file a personal income tax return every year.
The CRA has several resources to help self-employed people comply with their tax obligations, including the Self-Employed Individuals Tax Centre, Guide T4058, and the self-employment kit.
If you are self-employed, running your own business, or are a freelancer, contractor, or sole proprietor, you are responsible for paying your taxes. This can be a daunting task, especially if you are new to self-employment.
At Tax Eagles, we are experts in self-employed taxes and can help you navigate the complex world of tax filing and ensure that you are paying the correct amount of taxes. We can help you set up a tax plan that minimizes your tax liability and maximizes your deductions so that you can keep more of your hard-earned money.
Visit www.taxeagles.com for more information or to book a free consultation.