If I do a Medical Study, does it count as Income for Tax or E.I. ?

[worksmart]

To anyone that can help, I have checked the internet for this situation, but havn't found out an answer.

I am thinking about doing a Medical Study for $1500 at Pharma-Medica in Toronto.

On the Pharma website, it says that:

"The fee we pay you is compensation for your time it is not employment income. You will not receive an employment statement from us, and we do not deduct taxes, etc., from your fee."

So according to them, this is not income. Is this correct ? Is it indeed not Taxable under Canadian law ?

I am also on E.I. at the moment. Does this mean that if I do the study, do I have to declare this money to Service Canada or not ? If it is not taxable income, then what is it ? A gift ? Does it still count as income to E.I. ?

I checked out Service Canada's website and of the over 50 things they list as income or not, they do not list Medical Studies.

What would happen if I deposited this in my account (I currently have direct deposit for my E.I. benefits and Income Tax) ? Would Service Canada find out about it ? Does Service Canada keep a monitor on a person's bank account ? Does the government keep a monitor on a person's bank account for Income tax perposes ?

Would I be better off going to Money Mart if I didn't declare this ?

How strict is Service Canada regarding E.I. and Medical Study compensation ?

Any thoughts ? If anyone knows of another forum I can go to, please point out the way.

Thanks.

[geoffrey]

a ) Save your dignity and don't do a pharmaceutical tests for a few dollars.

b ) You'd have to deduct those taxes off yourself and remit them at the end of the year (or get less back in credits)... at least, if they found out. Legally, I'd suggest you do that. Essientally, you'd be operating as an independant contractor I think. For EI, I'm not sure... though if your a contractor, your not likely to get much.

Then again, they might pay you under the table completely, cash, who knows... because their tests are highly unethical and they don't wanna get sued.

[gerryhatrick]

To anyone that can help, I have checked the internet for this situation, but havn't found out an answer.

I am thinking about doing a Medical Study for $1500 at Pharma-Medica in Toronto.

On the Pharma website, it says that:

"The fee we pay you is compensation for your time it is not employment income. You will not receive an employment statement from us, and we do not deduct taxes, etc., from your fee."

So according to them, this is not income. Is this correct ? Is it indeed not Taxable under Canadian law ?

I am also on E.I. at the moment. Does this mean that if I do the study, do I have to declare this money to Service Canada or not ? If it is not taxable income, then what is it ? A gift ? Does it still count as income to E.I. ?

I checked out Service Canada's website and of the over 50 things they list as income or not, they do not list Medical Studies.

What would happen if I deposited this in my account (I currently have direct deposit for my E.I. benefits and Income Tax) ? Would Service Canada find out about it ? Does Service Canada keep a monitor on a person's bank account ? Does the government keep a monitor on a person's bank account for Income tax perposes ?

Would I be better off going to Money Mart if I didn't declare this ?

How strict is Service Canada regarding E.I. and Medical Study compensation ?

Any thoughts ? If anyone knows of another forum I can go to, please point out the way.

Thanks.

From the latter part of your post I think you know the answer to the initial questions you're asking.

Yes, it is income. They are saying it's not income from their perspective in the sense that you're not going to get a T4, but that only means you're acting like a private contractor. If they were audited they would report that they paid you that money, although the chances of that are slim.

No, your bank account isn't being watched. And yes, EI would expect you to report that money to them.

[worksmart]

gerryhatrick and geoffrey,

I really appreicate both of your input in this matter.

Thank you and take care.

[Figleaf]

To anyone that can help, I have checked the internet for this situation, but havn't found out an answer.

I am thinking about doing a Medical Study for $1500 at Pharma-Medica in Toronto.

On the Pharma website, it says that:

"The fee we pay you is compensation for your time it is not employment income. You will not receive an employment statement from us, and we do not deduct taxes, etc., from your fee."

So according to them, this is not income. Is this correct ? Is it indeed not Taxable under Canadian law ?

They are saying it is not EMPLOYMENT income which means they don't have to do a source deduction. It is still TAXABLE income which you should report on your return.

I am also on E.I. at the moment. Does this mean that if I do the study, do I have to declare this money to Service Canada or not ? If it is not taxable income, then what is it ? A gift ? Does it still count as income to E.I. ?

You do have to declare it to the EI and you'll have your benefits reduced according to whatever formula they have in effect these days. You may be able to extend your benefit by a length of time commensurate with the time off from benefit you incur, but I'm not sure.

What would happen if I deposited this in my account (I currently have direct deposit for my E.I. benefits and Income Tax) ? Would Service Canada find out about it ? Does Service Canada keep a monitor on a person's bank account ? Does the government keep a monitor on a person's bank account for Income tax perposes ?

They need either your permission, or a court order to monitor your bank account.

Would I be better off going to Money Mart if I didn't declare this ?

NEVER use Money Mart -- they suck your blood.

[Charles Anthony]

Would I be better off going to Money Mart if I didn't declare this ?

NEVER use Money Mart -- they suck your blood.

As an aside, several years ago, I had a cheque book stolen and my cheques were forged.

Some of the cheques were deposited in the same bank (to clarify: the forged cheques were deposited in the same BRANCH of the same bank from which my bank account was registered, i.e., they had my signature on file behind their back) and some were attempted to be deposited at a Money Mart. Only the Money Mart cared to ask for identification.

At the end of the month, the bank lost its money because they were required to reimburse me -- but they did not care to find the crook. The Money Mart immediately called the police and the crook was apprehended and subsequently charged.