

Ask HN: Entering into a part-time contract role, what should I know - cluelessme

Recently I did a couple months stint with a company architecting and leading the development of one of their major products, a SaaS crowdfunding platform.<p>I have put my post-secondary education on hold for a while, and have been working full-time.<p>Unfortunately, administration from the program I was enrolled in at school contacted me and said I must return immediately in September to complete my program or I will lose all my existing credits.<p>So now this company wants me to continue doing work for them on a part-time contract basis, where I log hours and they pay me for hours worked.<p>The CEO mentioned I may have to bill 5% GST on top of the hourly rate, and I&#x27;d have to figure that out based on my earnings, but I have no idea how that works.<p>Given the circumstances, what are some things I should be aware&#x2F;careful of? And will there be any changes I have to be aware of for my tax return next year? I&#x27;m in Vancouver, Canada.
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jlaporte
If you are certain that your billings for the year from all clients will be
less than $30k, then you don't need to register for or collect GST. But if
there's any chance you will exceed this amount you should register.

This questionnaire is helpful: [http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-
tps/rgstrng/rgstr...](http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-
tps/rgstrng/rgstr/menu-eng.html)

Your next question should be to decide whether to operate as a sole proprietor
or to incorporate. Sole proprietor: you will file all your earnings on your
personal taxes as usual. If you incorporate you'll have some responsibilities
to create and maintain the corporation. You'll likely want to follow the sole
proprietor path for a part time gig.

If you do decide to register for GST (or to incorporate) I'd suggest finding
an accountant to help you with the setup of your GST account with CRA and to
explain the schedule for remittance. It's actually not hard at all but helpful
to understand from the start.

