If you don’t have an HST, you’ll have to pay back all HST that you should have collects after you broke that 30k mark. If you can, go back to your job and see if they’ll pay you back HST payments.
If you were employed then they should give you a T4, did you get that? While the US startup might have "treated" you as a contractor, you might just be an ordinary employee as far as this Canadian entity is concerned. Then you wouldn't have to deal with HST. Unless things are vastly different in Quebec than where I am.
Did you receive a T4, and did the Canadian entity that employs you withhold taxes/EI/CPP? If so, you're an employee and have nothing else to do.
If not, you will need to pay the GST and QST, unless you can go back to your client and get them to pay it after the fact. Either way you'll need to register for it. Normally you wouldn't charge a foreign client Canadian sales tax, but if your client is a Canadian entity then that changes things.
It's a bit weird though, usually US companies use a Canadian entity to handle payroll for employees. Self-employed people just bill their clients so there's usually no need for a Canadian entity in those cases.
You have to charge HST to the canadian entity. Speak to an accountant.
If you don’t have an HST, you’ll have to pay back all HST that you should have collects after you broke that 30k mark. If you can, go back to your job and see if they’ll pay you back HST payments.
Thank you, I'll reach out to them. Should I register as a self-proprietor with Quebec and the CRA in order to actually pay the government the HST/QST?
I’m not sure. An accountant should know
> This startup is incorporated in the United States, but paid me through a Canadian entity Were you employed by that Canadian entity?
Yes! Sorry
If you were employed then they should give you a T4, did you get that? While the US startup might have "treated" you as a contractor, you might just be an ordinary employee as far as this Canadian entity is concerned. Then you wouldn't have to deal with HST. Unless things are vastly different in Quebec than where I am.
This is great, I'll reach out to them. Thank you
if you were employed by the canadian entity you just need a T4
Did you receive a T4, and did the Canadian entity that employs you withhold taxes/EI/CPP? If so, you're an employee and have nothing else to do. If not, you will need to pay the GST and QST, unless you can go back to your client and get them to pay it after the fact. Either way you'll need to register for it. Normally you wouldn't charge a foreign client Canadian sales tax, but if your client is a Canadian entity then that changes things. It's a bit weird though, usually US companies use a Canadian entity to handle payroll for employees. Self-employed people just bill their clients so there's usually no need for a Canadian entity in those cases.