Hello guys
Sorry for another thead but can't seem to find any info on that topic anywhere.
So i just got my first class 1 driving job and my employer told me I need to get incorporated to get paid.
Now i was able to find some videos on advantages of being incorporated but couldnt find anything specifically for Just Drivers. I know O/O have to incorporate but being a driver doesn't make sense to me.
I see its $200 to incorporate online from governments website.
Someone please shine some light on that.
Thank you
Incorporate to get paid new driver
Discussion in 'Canadian Truckers Forum' started by Noobtr, Jul 3, 2018.
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Don't do it
Use this website
Payroll Deductions Online Calculator - Canada.ca
Enter your gross for 1 month say you drove 10,000 miles at .55 so they pay you 5500.
Enter 5500 and see how much you will get to keep. You will be responsible for the cpp amount deducted both for your personal and your company will match it. For ei you will pay for your personal and your company will pay 1.4x what is deducted. So really now that I think about it you can't even enter 5500 as gross pay. The calculation looks like this:
Enter 5000. Deduction from employee: tax, cpp, ei.
Employer must also add same cpp amount and ei×1.4.
Submit to gov total of taxes, cpp personal + cpp company (same amount) + ei personal + ei company (ei×1.4)
The company amounts due will have to come from somewhere. That's why you entered 5000 as payroll rather than the full 5500. -
Oh, and you will have WSIB issues to deal with as well. Which account for about 7% of gross wages. To be paid by the employer, unless the employee is deemed an "independent contractor" which you driving their truck are not an independent contractor.
BigHossVolvo, Noobtr and not4hire Thank this. -
Run.
Away.3noses, BigHossVolvo, Tb0n3 and 5 others Thank this. -
As fast as your legs will take you.
3noses, BigHossVolvo, Tb0n3 and 2 others Thank this. -
Ok so it makes sense. But wount I get paid same ammount after deductions if I was an Employee?
I desperately need a job and experience. Would you suggest working there for experience and then maybe in 6 months I can find someone else for works -
Don't do it, it won't be worth it. You should be able to find a company straight enough to pay you honestly and give you a chance to learn.
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You'll just get yourself in a bigger nightmare with cra.
To give you an idea of the cost to employ someone. For me the cpp and WSIB I figure are about 12%. So if I pay myself 1000 really the amount that leaves my company is about 1120 and I deposit about 965 as my after tax money. I am allowed to dodge ei. So therefore the % will be even higher, perhaps 16-18%. So .55÷1.18 = .46
That means you'd be about the same as a .46 gig. Without any employee protections. And scrutinized at tax time. So if you want to go through with all that, more power to you.Last edited: Jul 4, 2018
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Everybody is right on here with their answers to you, this is an illegal scam and should be reported to CRA. The penality is death if caught, or at least YOU will feel like that, the crook employer, a slap on the wrist, that's why they keep doing it.
Find a good company that will pay you properly, provide your S.I.N., that's all a legitimate company needs for a paycheck, along with your TD-1 filled out for your deductions. That's it, nothing else! Good luck in your new career.. -
There is a tax loophole that a lot of these companies use to avoid having a driver put on payroll and also seeing how high driver turnover is, I understand.
Until this loophole is closed, companies will continue to use this method of payment. It is not tax evasion and therefore, I don't see it as being illegal.Canadianhauler21 Thanks this.
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