If I work for an online tutoring companies based in US such as Chegg.com, do I need to pay the CPP contribution out of my pocket?

Hello,

If I work as an online tutor for US based tutoring company such as Chegg.com, do I need to pay the CPP contribution under my CPP account? Also, do I need to pay income tax on my income? My understanding is that I need to pay my income tax, but I don't know how I will do it, as the company does not supply T4 form.

Answer

Are you an employee or self-employed?

Generally speaking, if you are working remotely from Canada for a US company, you do NOT pay any US tax on this income. You only pay tax to the country where you were PHYSICALLY located when earning the income. 

So yes, you would pay tax on this income in Canada. If you are a Canadian resident, you are always required to pay tax on your WORLDWIDE income in Canada. 

I suspect that you are self-employed. Therefore, you would report this income (converted to Canadian $) on a T2125 (and deduct any expenses you had). You would also pay BOTH the 4.95% employee portion and 4.95% employer portion for CPP when you file your income tax return for the year. Just like you normally would if you were self-employed and had a business physically located in Canada. 

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