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Hurk
Apr 3rd, 2007, 01:50 PM
Hi there.

My girlfriend is a registered massage therapist.

Her clients pay $35 for half hour, and $65 for a full hour (or something like that) and her employer takes 35% of those ernings for rent / supplies etc.

Does my girlfriend state she makes 65% of her hourly rate (ie: her employer takesw %35 of everything regardless) or does she state she makes the full $35/$65 and then claim her expenses ($10,000) after that?

She's "independent" worker, I don't know the terms.

Can anyone shed some light?

IE: Does she claim $35,000? (full $35/$65)

or

IE: Does she claim $22,750?(partial)

I understand she'll still have to pay taxes on what she brought home, but it appears her accountant is making her pay taxes on the full amount, and it doesn't appear that the accountant is claiming her rent/expsenss/
sunnybono
Apr 3rd, 2007, 01:55 PM
She is better off including the full amount, then deducting the rent. One thing for sure is that atleast her employer/landlord will have to claim the extra income earned, if they haven't already done so!!!!

sk
Bullseye
Apr 3rd, 2007, 02:22 PM
You said 'employer', but also that she is a contractor, which is it? Does she meet the CRA guidelines for an independant contractor? If so, then she would claim full revenue and deduct the portion her 'employer' charges as an expense.

If she has an accountant, though, why aren't you asking him or her these questions?
Hurk
Apr 3rd, 2007, 02:51 PM
She is better off including the full amount, then deducting the rent. One thing for sure is that atleast her employer/landlord will have to claim the extra income earned, if they haven't already done so!!!!

sk

Thanks. I did some more research and it looks like she will claim the full amount.

You said 'employer', but also that she is a contractor, which is it? Does she meet the CRA guidelines for an independant contractor? If so, then she would claim full revenue and deduct the portion her 'employer' charges as an expense.

If she has an accountant, though, why aren't you asking him or her these questions?

I don't like her accountant, which is why I came here. She is an independant contractor, so it looks like she'll claim full amount and deduct the rent/expenses.

Thanks.