Guides for the decisions that affect the file
Each guide explains a specific question Canadian IT contractors come up against: what CRA looks at, what the numbers usually look like, and what to organize before a return is filed. Written for the file, not for SEO.
Compliance & filings
What needs to be filed, when, and on which authority's deadline: for both sole proprietors and incorporated contractors.
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GST/HST Registration for Canadian IT Contractors
Once you cross $30,000, you owe GST/HST on everything after that: including before you've registered.
~ 8 min read /Updated Mar 13, 2026 → -
QST Registration for IT Contractors in Quebec
In Quebec, both GST and QST are administered by Revenu Québec. One agency, two taxes, one registration process.
~ 8 min read /Updated May 19, 2026 → -
Quarterly Tax Instalments for Canadian IT Contractors
CRA charges interest on missed instalments even if you settle the full balance in April.
~ 9 min read /Updated Mar 18, 2026 → -
2025 Tax Document Checklist for IT Contractors and Tech Consultants
T4A slips from clients don't always arrive on time, and a missing one is enough to trigger a reassessment.
~ 12 min read /Updated Feb 25, 2026 → -
How IT Contractors Should Organize Tax Documents for T1, T2125, and T2 Filing in Canada
Most of the scramble at tax time is avoidable. It comes down to what you track during the year and where you keep it.
~ 10 min read /Updated Mar 25, 2026 →
Setup & structure
Deciding the business structure, registering correctly, and understanding which arrangements carry CRA risk before signing the contract.
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Should I Incorporate as an IT Contractor?
The tax savings are real, but so is the admin cost. Whether it makes sense depends on your income level and how you work.
~ 10 min read /Updated Mar 17, 2026 → -
Sole Proprietor vs Corporation for IT Contractors
Incorporation isn't automatically the better structure. The answer depends on your income level, risk tolerance, and how you work with clients.
~ 11 min read /Updated May 9, 2026 → -
Personal Services Business Risk for Incorporated IT Contractors
If CRA classifies your corporation as a personal services business, most deductions disappear and the tax cost goes up significantly.
~ 14 min read /Updated Apr 24, 2026 → -
The First Year as an Independent IT Contractor
The transition from employee to independent contractor changes your tax structure immediately. Here is what to register, track, and file in year one.
~ 14 min read /Updated Jun 6, 2026 →
Deductions & expenses
Which contractor expenses are deductible, what evidence the file needs, and where ambiguity tends to live.
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Home Office and Business Expenses for IT Contractors
Home office, software, and equipment are all deductible: but CRA's documentation requirements are stricter than most contractors expect.
~ 11 min read /Updated Mar 22, 2026 → -
Business Expenses for Quebec IT Contractors
Quebec IT contractors claim expenses across two agencies and two forms. QST input tax refunds, TP-80, and Quebec rules change how the deductions work.
~ 10 min read /Updated May 21, 2026 →
Compensation & cash-flow
How incorporated contractors pay themselves, the payroll cost differences by province, and what to settle before year-end closes the options.
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Salary vs Dividend for Incorporated IT Contractors
The salary vs. dividend question isn't just about the tax rate. CPP, RRSP room, and loan eligibility all depend on how you pay yourself.
~ 13 min read /Updated May 10, 2026 → -
Salary vs. Dividend for Quebec Incorporated IT Contractors
The salary vs. dividend calculation looks different in Quebec. QPP, QPIP, HSF, and a separate TP-1 all shift the math for Quebec owner-managers.
~ 10 min read /Updated May 20, 2026 → -
Reasonable Salary for Incorporated IT Contractors
There's no formula for what to pay yourself from your corporation. But the decision affects your RRSP room, CPP, and what a lender counts as income.
~ 9 min read /Updated May 6, 2026 → -
Shareholder Benefits and Corporate Leakage for Incorporated IT Contractors
Personal spending through a corporation is not a grey area. Unsupported personal expenses are commonly reassessed as shareholder benefits.
~ 9 min read /Updated May 19, 2026 →
Canada & the U.S.
USD clients, exchange-rate documentation, GST/HST on cross-border work, departure tax, RRSP treatment after emigration, and the Canada-U.S. tax treaty.
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U.S. Client Income for Canadian IT Contractors
USD revenue is taxable in Canadian dollars at the exchange rate on the invoice date, not the day the money lands in your account.
~ 10 min read /Updated Apr 27, 2026 → -
W-8BEN and W-8BEN-E for Canadian IT Contractors
U.S. clients often request a W-8 form before paying. Which version you submit depends on whether you're a sole proprietor or a corporation.
~ 7 min read /Updated May 10, 2026 → -
Departure Tax When Moving from Canada to the U.S.
When you leave Canada for the U.S., CRA treats the departure date as a deemed sale of most property. This guide covers what that means before you file.
~ 11 min read /Updated Jun 2, 2026 → -
Your RRSP When You Leave Canada for the U.S.
Your RRSP isn't triggered when you leave Canada, but withdrawals as a non-resident bring new rules. This guide covers what changes and what to plan for.
~ 9 min read /Updated Jun 3, 2026 → -
Canadian Filing Obligations While Living in the U.S.
Moving to the U.S. doesn't end your Canadian tax obligations. Non-residents with Canadian-source income have specific annual filing rules.
~ 10 min read /Updated Jun 5, 2026 →
Incorporated contractors
How the T2 and T1 interact, what a Quebec establishment adds to the filing picture, and how compensation flows from corporation to owner.
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Federal and Quebec Filing Structure for IT Contractors
An IT contractor in Quebec files with two agencies. This guide maps the full structure: T2, CO-17, T1, TP-1, QST, RL slips, QPP, and two-track instalments.
~ 10 min read /Updated May 26, 2026 → -
Should I Incorporate as a Quebec IT Contractor?
Quebec IT contractors need a different incorporation break-even: higher filing costs, QPP/QPIP payroll overhead, QST, and two tax agencies.
~ 10 min read /Updated May 21, 2026 → -
T2 and T1 Filing for Incorporated IT Contractors
The T2 and T1 are separate returns, but the compensation decisions you make for one directly affect what you owe in the other.
~ 9 min read /Updated May 13, 2026 → -
Tax Filing for IT Contractors with a Quebec Establishment
Working in Quebec adds a second set of returns: CO-17 alongside the T2, TP-1 alongside the T1, and QST alongside GST.
~ 9 min read /Updated May 13, 2026 → -
Quebec Quarterly Tax Instalments for IT Contractors
Quebec residents face two separate instalment tracks: one to CRA and one to Revenu Québec. Missing either triggers interest independently.
~ 9 min read /Updated May 21, 2026 → -
Quebec Tax Document Checklist for IT Contractors
Quebec IT contractors file with two agencies. This checklist adds RL slips, QST return documents, TP-80, TP-1, and CO-17 to the federal document list.
~ 9 min read /Updated May 21, 2026 →
CRA compliance
What CRA penalties and interest look like in practice, and what to do when CRA initiates contact.
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CRA Penalties and Interest for IT Contractors
CRA interest on late payments starts the day after the due date. By April, some contractors owe more than they expected.
~ 7 min read /Updated Mar 22, 2026 → -
What IT Contractors Should Do When CRA Contacts Them
A CRA letter can be a routine review or the start of an audit. Either way, the first step is understanding exactly what they're asking for.
~ 8 min read /Updated Mar 25, 2026 →
Contractor to consultancy
When contractors grow into consulting firms: subcontractors, multiple owners, partner compensation, worker classification, and the corporate structure decisions that follow.
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When Does an IT Contractor Become a Consultancy?
The line between contractor and consultancy is not a revenue number. It is the moment clients stop buying your time and start buying your firm's capacity.
~ 15 min read /Updated Jun 3, 2026 → -
One Corporation or Multiple for a Consulting Firm?
Putting three consultants in one CCPC looks simple. The problems appear at compensation, SBD limits, and exit.
~ 16 min read /Updated Jun 7, 2026 → -
Paying Consulting Firm Owners: Salary, Dividends, and Draws
When a consulting firm has two or three owners, the solo contractor compensation framework stops working. Here is what changes and why.
~ 14 min read /Updated Jun 8, 2026 → -
Employees vs. Subcontractors in an IT Consulting Firm
Calling someone a subcontractor does not make them one. CRA looks at the facts, and a wrong classification can mean CPP, EI, penalties, and interest.
~ 16 min read /Updated Jun 9, 2026 → -
Project Profitability in a Small IT Consulting Firm
Revenue tells you whether the firm is busy. Gross margin by project tells you whether the work is worth doing. Most small firms track one and miss the other.
~ 17 min read /Updated Jun 9, 2026 →
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