INTRODUCTION TO CANADA

Canadian Pension Plan

The Canada Pension Plan is an insurance program designed to help provide you with income for your retirement. In general, if you work in Canada or are self-employed and you are 18 to 70 years old you become a contributor and must pay into the CPP. If you are an employee, your employer must match your contribution to the plan. The CPP can also provide you with income if you become disabled and benefits may also be paid to your family when you die.

When you retire, the Government will pay you roughly $400-800 Canadian dollars per month.

Unemployment Insurance

The Employment Insurance program may provide you with benefits if you become unemployed. In general, your employer must deduct EI premiums from your pay.

Registered Retirement Savings Plan

A registered retirement savings plan (RRSP) is a retirement plan that we register and that you or your spouse or common-law partner establish and contribute to. Deductible RRSP contributions can be used to reduce your tax. Any income you earn in the RRSP is usually exempt from tax for the time the funds remain in the plan. However, you generally have to pay tax when you cash in or receive payments from the plan.

This is an excellent method for reducing your taxes while saving for your retirement.

Canada Child Tax Benefit

The Canada Child Tax Benefit is a tax-free monthly payment made to eligible families to help them with the cost of raising children under age 18. The CCTB may include the National Child Benefit Supplement (NCBS), a monthly benefit for low-income families with children, and the Child Disability Benefit (CDB), a monthly benefit providing financial assistance for qualified families caring for children with severe and prolonged mental or physical impairments.

Depending on how many children you have, you should expect between $2000 – 5000 Canadian dollars per year from the Canadian government.  To calculate the amount yourself, please click the following link:

http://www.cra-arc.gc.ca/dchmf/icbc-simn/simnProvMarital-e.jsp

GST/HST Tax Credit

The GST/HST credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST that they pay.

Are you eligible?

You have to be a resident of Canada, and 19 or older, to receive the GST/HST credit.

You should expect a between $600-800 Canadian dollars per year from the Canadian government.

http://www.cra-arc.gc.ca/dchmf/icbc-simn/simnProvMarital-e.jsp

Health Insurance

Canada has one of the finest health insurance programs in the world. Health insurance means that you don't have to "pay" directly for most health care services. They are paid for through your taxes. When you use these services, you simply present your Health Insurance Card.

While health insurance is a national service, each province administers its own program. There may be some variations in eligibility from province to province. In some provinces you will have to pay a small monthly fee for this insurance. It is important to apply for your health insurance card as soon as possible. You will receive your health insurance card from the province where you live. You can get an application form at a doctor's office, a hospital, a pharmacy or an immigrant-serving organization.

Permanent residents in British Columbia, Ontario, Quebec and New Brunswick have a three-month eligibility waiting period. During this time, you should apply for temporary private, health insurance coverage. Private health insurance is also available for services which are not covered under the government health insurance plan. These might include dental costs or private hospital rooms. Some employers also offer additional health insurance for a monthly deduction from your paycheque. In most provinces, health insurance does not cover the cost of prescription drugs, dental care, ambulance services and prescription eye glasses.  Medical check-ups and operations are paid by the government not individuals.

A Health Insurance Card must not be exchanged with anyone else. It is for your use only and you could lose the benefits it provides by letting other people use it. You could also face criminal charges and be removed from Canada. 

Apply for a Social Insurance Number (SIN)

In order to work in Canada you need to apply for and obtain a SIN card.  You may apply for a SIN card at the nearest Human Resource Development Canada (HRDC) office.  Your first SIN card is free.

To apply for a Social Insurance Number, you must complete an application form and provide an original of a primary document that proves your identity and status in Canada. When you submit your application, ask for a receipt or temporary card - so you can apply for jobs while you wait for your card.  You will receive your card 4-6 weeks after you apply.