So you recently moved to Canada as a foreigner, and you searched frantically for a job to earn a living in Canada and you have finally landed a job, Congratulations!
Now, you might be wondering that “Okay, I have got the job. Now what?” Are there any special processes or documents to submit after getting employed? The basic question still boils down to “how do you start a new job in Canada?”
In this article, we will be handing out fresh tips to you on how you can effectively kick start your new job easily!
Tips For Starting A New Job In Canada
While getting a Job in Canada is great, there are a few things to be aware of. Before now, we talked on A Few Actionable Steps To Increase Your Chance Of Getting A Job In Canada. But that is only applicable if you are yet to get A Job. Assuming you already got one, here are a few things to be aware of.
Let’s get to the tips, shall we?
1. Know what Tax Residency is all about
For settlers into Canada, when you are first taxed, you will be taxed as a newcomer. But once you are done with the first tax year, for the purpose of income tax you will be referred to as a Canadian resident. The difference between residents and non-residents is that, as a newcomer and a non – resident, you will be taxed only on your Canadian income but for a Canadian resident, they will pay tax on their international/worldwide incomes.
The tax year for Canadians is from January 1st to December 31st of every year. If you ever want a tax refund, you can only apply for it until March 1st of the following year.
2. Do you have a SIN number yet?
You need to get your Social Insurance Number (SIN) first before you can begin to work in Canada. You can even apply for it before you arrive in Canada at www.taxback.com. You absolutely need to get this number.
3. Know about your tax forms
Once you get a new job, you are required to fill out some tax forms. Your employer will give them to you. These forms are called the Federal and Provincial Personal tax forms. An employer needs you to fill this form in order to determine how much tax will be deducted from your income. There is the Federal form TD1, this TD1 has different layouts depending on the year.
There is also the Provincial form which will be given to you based on the province in which you work. There is the TD1BC for the British Columbia, there is the TD1SK-Saskatchewan, the TD1MB for Manitoba province, the TD1NU for the Nunavut province and the Quebec province form.
You will need to complete both the Federal form and the provincial form if:
- You are employed with a new employer,
- You wish to change tax amounts from previous years,
- You want to increase the tax amount deducted at a particular income service.
4. Know about the T4
Usually in the month of February the following year after the end of the previous tax year, your employer will give you a T4.
What is the T4?
This is a statement of your income from the previous year and the amount of tax that was deducted from it. This T4 statement can help you to apply for a tax refund. The amount of money you will be able to get back depends on factors like:
- The amount of tax you paid
- The number of jobs you had
- Residency status
- The amount of income you received from abroad and so on.
5. Always manage your finances the minute you start working
What a new job means is that, you have a steady income and you have the freedom to spend money as you like. Also, earning income comes with big financial responsibilities like saving up money for the future and paying up bills. Therefore, you need to take actionable steps to track your income vs spending. You can make a budget that will help you to manage your income.
Your budget will tell you how much you are allowed to spend and how much you are to save. A budget helps you to reach your finance goals real quick and easily. As a newcomer in Canada, you need to have a scale of preference as regards to your spending. Budget for your needs first before you put the leftover amount on other miscellaneous expenses. You are supposed to prioritize your needs first before your wants. Your needs include rent, basic utilities and emergency savings.
Also, set savings goals and pay back all your debts. If you have student loan debts that need to be related, budget real quick for them, missing your debt payment or paying later can affect your credit score. It is also good behaviour to set savings goal every month and try to meet them.
All in all, if you can follow these tips given above, you will be starting your job in Canada on the right foot.
