CPP, GST/QST & You: What Every Self-Employed Canadian Needs to Know
Self-employment offers flexibility—but it also means managing your own CPP contributions and GST/QST obligations. From understanding contribution rates to knowing when registration is required, proper planning helps avoid costly surprises and keeps your business finances on track.
For freelancers and self-employed professionals in Quebec, taxes can quickly become confusing. Why is the tax bill high? What are CPP contributions for? Do I need to register for GST and QST? Self-employed Canadians are responsible for these payments directly, without an employer handling deductions.
Understanding Your Obligations
Unlike employees, self-employed individuals manage their own CPP, GST, and QST. Planning ahead prevents surprises:
Set aside funds for CPP contributions (CRA CPP Guide)
Allocate collected GST/QST for remittance (CRA GST/HST, Revenu Québec QST)
Track income and expenses to maintain cash flow
CPP Contributions
Self-employed Canadians pay both the employee and employer portions of CPP (combined rate 11.9%) on net business income (CRA CPP Details). Calculating CPP on net income, rather than gross revenue, ensures correct contributions. Many choose to set aside monthly to avoid year-end surprises.
GST/QST Registration
Businesses with taxable revenues exceeding $30,000 in a 12-month period must register for GST/HST and QST (CRA Small Supplier Rule, Revenu Québec). Registered businesses must charge, collect, and remit taxes on time. Failing to do so may result in interest, penalties, or audits.
How A&S Financials Helps
Self-employment doesn’t need to be stressful. A&S Financials assists with GST/QST registration, CPP planning, income tracking, and filing. Our CPA-led team supports clients across Quebec and Canada, ensuring compliance while maximizing tax efficiency (CRA Filing Guide).
A Final Word
Understanding CPP, GST, and QST transforms them from sources of stress to manageable obligations. Expert guidance ensures self-employed Canadians stay compliant, confident, and in control of their business finances.