I think your bandmates would have to file as contractors for their portion of the pay, and you'd have to file that you paid them. Don't quote me on that though, because I don't know for sure. I would ask a certified accountant that one (maybe we have a couple here).
Question about income tax on gig money.
In October, my band is playing a show at CFB Gagetown.
CFB wants my SIN and legal name so that they can cut the $800 cheque.
This $800 will be divided amongst myself and 5 other band members equally.
How do I ensure that I don't have to pay taxes on the full $800 myself?
I don't mind recording the $133 as extra income on my tax bill, but my name is the only name on record for the full 800 pay.
Tks.
CFB wants my SIN and legal name so that they can cut the $800 cheque.
This $800 will be divided amongst myself and 5 other band members equally.
How do I ensure that I don't have to pay taxes on the full $800 myself?
I don't mind recording the $133 as extra income on my tax bill, but my name is the only name on record for the full 800 pay.
Tks.
1 - 20 of 21 Posts
You pay your bandmates by cheque, and claim the fees paid to them as an expense.
Could you tell them that the $800 is a cash price. If they want your SIN and to pay by cheque, the price is $1200. Of course you have to be prepared to walk.
No offense but that is a pretty shitty payout. I understand why CFB want's/has to do it. I would just pass on the gig. No need to get in trouble with Revenue Canada.
I would see if they can cut 6 cheques 
If thats not possible, you may find your answer on this link
Employed artists
If thats not possible, you may find your answer on this linkEmployed artists
Yes if you declare your cut on the income tax you can also declare some of your gear , the gas to get there , wear and tear on your car etc as a business expense. Me I would walk or get a band mate to give the ID and have him pay you your cut.
My understanding was that you don't have to provide your SIN unless you are an actual employee.
More info;
It's just a 1 hour gig, and backline and production is provided. So $800 is not bad pay.
I will ask if they can cut six $133 cheques to individual band members.
It's just a 1 hour gig, and backline and production is provided. So $800 is not bad pay.
I will ask if they can cut six $133 cheques to individual band members.
As a government department anyone Canadian they pay for goods and or services MUST supply a SIN, or registered HST business number. Only exception are aboriginal businesses. Chances are you, or someone in the band will have to sign a contract as well. No such thing as them being able to cash. Even petty cash MUST be accompanied by a receipt. $800 is waaayyyy too much for petty cash. Thats the way the feds must operate. I used to know this stuff by chapter and verse in the manuals but I filled those brain cells with other useless information since I retired.
Best bet if they will only pay one person is for the person who is paid is to pay the others by cheque. Keep ALL paperwork so you can show it to CRA if they ask. You do not have to worry about about the other guys claining income or not. Thats between them and CRA.
Best bet if they will only pay one person is for the person who is paid is to pay the others by cheque. Keep ALL paperwork so you can show it to CRA if they ask. You do not have to worry about about the other guys claining income or not. Thats between them and CRA.
If you are the de facto leader whereby the funds are issued in your name and/or you are signing a contract in your name only, you would claim $800 of income and $667 of expenses.You pay your bandmates by cheque, and claim the fees paid to them as an expense.
How would I have proof of the $667 in expenses other than cheques. I haven't had a chequing account in years. Maybe I can print off the IEMTs that I send out?If you are the de facto leader whereby the funds are issued in your name and/or you are signing a contract in your name only, you would claim $800 of income and $667 of expenses.
You can pay them in cashand have them sign a receipt for the money. In the receipt specify what the payment is for.
That would work or receipt as @bluebayou mentioned.How would I have proof of the $667 in expenses other than cheques. I haven't had a chequing account in years. Maybe I can print off the IEMTs that I send out?
A person that I know that has worked at CRA for 20+ years said I'd need everyone's SIN.
Nobody likes giving that out.
Nobody likes giving that out.
You don't require a SIN. The other players can issue you an invoice but for the amounts involved, i wouldn't worry too much about it.A person that I know that has worked at CRA for 20+ years said I'd need everyone's SIN.
Nobody likes giving that out.
No SIN required for the other guys - they're subcontract. Get receipts for everything - you're becoming a business if you choose to deduct expenses. The tax form is called a T2125 - you list your income and expenses, which can/should include vehicle expenses (as a portion of the whole year's travel).
The alternative may be to just list your portion as "Other Employment Income". You don't need to submit receipts to CRA when filing - only if asked after the fact. Get the other guys to initial their take on the back of the cheque stub - should be good enough for the CRA.
Setting yourself up as a business is fine if you intend on doing something similar every year but can be a hassle otherwise as you need to report something every year or indicate that it's your last year of business. Also you kind of need an accountant or good tax preparer to ensure that you're following all of the rules.
Another possibility (one I don't necessarily recommend but it gets done lots) is to cash the cheque and forget about it. The fact that an entity paid you for a service only comes to the CRA's attention if they audit that entity and decide to follow the trail all the way to you.
The alternative may be to just list your portion as "Other Employment Income". You don't need to submit receipts to CRA when filing - only if asked after the fact. Get the other guys to initial their take on the back of the cheque stub - should be good enough for the CRA.
Setting yourself up as a business is fine if you intend on doing something similar every year but can be a hassle otherwise as you need to report something every year or indicate that it's your last year of business. Also you kind of need an accountant or good tax preparer to ensure that you're following all of the rules.
Another possibility (one I don't necessarily recommend but it gets done lots) is to cash the cheque and forget about it. The fact that an entity paid you for a service only comes to the CRA's attention if they audit that entity and decide to follow the trail all the way to you.
Within our company we have a clearing house account set up for this. We have our people sign a declaration so that if our CEO is ever questioned about the funds in that account, the declaration proves the money in that account is not his. This was recommended by his accountant. You could do the same by typing up a declaration stating that the $800.00 is a payment shared by all the band members and only a portion of the $800.00 is yours and have each band member sign it along with yourself. Then if you are asked about the $800.00 you have proof it does not all belong to you. Simple.
I was told that I need people's Social Insurance Numbers so that CRA could track the people down.Within our company we have a clearing house account set up for this. We have our people sign a declaration so that if our CEO is ever questioned about the funds in that account, the declaration proves the money in that account is not his. This was recommended by his accountant. You could do the same by typing up a declaration stating that the $800.00 is a payment shared by all the band members and only a portion of the $800.00 is yours and have each band member sign it along with yourself. Then if you are asked about the $800.00 you have proof it does not all belong to you. Simple.
Terry, we don't require that information. All you would need to supply the government is their phone number and perhaps their address.I was told that I need people's Social Insurance Numbers so that CRA could track the people down.
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