i went tax exempt in Jan for 11000 and now im at 30000 and still no taxes deducted. Now what?
I work in alberta and i just noticed no tax has been taken off yet. It was only supposed to be for 11000 but im at 30000 now and the company i work for still hasnt taxed me. Now what?
No I am not a contractor. I am an employee. Ive also spoke with payroll and "reminded" them to deduct the federal tax however im the one who still has to pay at the end of the year when it was their fault for not stopping at 11000. Now I will need extra taxes taken off just to make up for this. But it was their screw up. They should have to fix it, not me. I owe about 15000 to correct this. I shouldnt have to come to work and still owe at the end of the year. Ive never had to "owe" CRA whole career. Its very disheartening.
- Anonymous8 years agoFavorite Answer
I am in a similar situation with my second job. If the company treats you as an employee, and it is taking them time to get the tax withholdings set up, ask them how they plan to do this. If they will make deductions to make up for the period of no withholdings, once the deductions begin, expect to see a significant drop in after-tax income. If they do no plan to make up for the period of no withholdings, you have two options: a) you can make payments yourself to CRA on a quarterly basis, or b) you can pay next year when you file your taxes. I have done the former, which was very easy: I used my internet banking, and set up a bill payment for quarterly tax payments for CRA for 2012 - I made one quarterly payment only through internet banking (TD Easy Web) and this was sufficient to ensure I owed no taxes now for 2012. However, if this is the first time you are in this situation, you may want instead to set aside funds and use them to pay taxes owing next spring when you file your 2013 taxes (why not keep the interest rather than having CRA earn it)?
My bigger concern would be whether or not your company is treating you as an employee and paying the employer share of CPP and EI. If they are not, then you must pay both shares, which more than doubles your cost.Source(s): CRA, TD Easy WEB
- Fred SLv 78 years ago
It looks like the company thinks you're a contractor, not an employee. You need to clarify your status with them.
If you're a contractor, you have to pay your own taxes; the company won't withhold them.
- GeorgeLv 68 years ago
Fill in and submit new TD1 forms and / or talk to whoever does payroll.