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I recently started working in an arrangement neither me nor the person who hired me has done before. Someone who works as a contractor for a company got a budget to hire me as a (sub)contractor. He has an unincorporated company. He has agreed to provide me with a T4A and withhold tax for me. He is now asking me what tax he should withhold, like CPP or EI? What benefit is it to me to have my client withhold tax instead of doing it myself? Other than CPP or EI what else is there?

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    Is the intention for him to hire you as an employee of his business, or as an independent contractor? If the latter, are you incorporated, or operating as a sole proprietor? Is there a written agreement yet that describes your role and other terms? – Chris W. Rea Jun 1 at 14:15
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    if you're on a T4 you're not a contractor, you're an employee. And it's not up to either of you what gets withheld - there are rules. If he doesn't know them, he shouldn't be employing people. The risk is mostly his, but why should you have any risk on yourself over this? – Kate Gregory Jun 1 at 14:15
  • @KateGregory T4As are different than T4s. – topsqueaksquad Jun 1 at 14:17
  • @ChrisW.Rea "Is the intention for him to hire you as an employee of his business, or as an independent contractor" not sure. I'm not incorporated. There is a written agreement but it mainly says I will preform work at the request of the client, so it's not really specific exactly to what the project is I'll be working on (that being said, in practice it is a fairly specific job). – topsqueaksquad Jun 1 at 14:20
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    True, but they are still for employment related income, just weird stuff like pensions. I wouldn't agree to receive one without being very clear what it was for and why. It's not how you pay contractors. That's done by the contractor giving an invoice and the customer paying the invoice. – Kate Gregory Jun 1 at 16:20

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