Hi Lake Girl,
I have been nudged into temporary self-employment as the result of having been laid off from a long-time job earlier this year. I found freelance work right away, and the employer intends to take me on full time in a few months.
In the meantime, however, because I am not on the payroll (I invoice for the work, and tax and CPP are not being deducted at source), CRA considers me to be self-employed.
In all likelihood, my self-employment stint will last about four months. I do not intend to continue with "the business" once a staff position becomes available.
1. What should I be doing to prepare for my 2011 tax return, and what are my options come tax time?
2. Am I required to declare myself a sole proprietor for these few months or can I just declare the earnings as additional income and be prepared to pay the tax and CPP?
3. Are there benefits to short-term self-employment such as this? I work from a home office and have been using my personal computer and office equipment, so very few additional costs have been incurred.
Thanks very much for any advice!
Join in and write your own page! It's easy to do. How? Simply click here to return to Home Business Taxes.
Use the search feature to quickly find the
information you're looking for.
Click on image above to read the chat.
Join Me On Facebook
Help support this site by "liking" me! Here's where I post current information.
Listed Under Websites NOT Local Business.
This website is NOT associated with the business operating in Bonnyville AB.