# Canada AB/BC tax query



## hestersmum (Oct 29, 2012)

Hi
We are looking to emigrate to Canada next year and Iam currently planning budgets based on affordability.

The way I understand it is that you pay federal and provincial tax on earnings. We would be emigrating with an LMO under the Temporary Foreign Workers Programme. Does anyone know if you pay your tax in with your earnings or if you have to submit a yearly tax return? If yearly, do people just save every month for this based on expected tax to pay?


Also, sorry not tax related, but does your employer take a payment off for health insurance generally? If so, could you give me an indicative cost for health insurance for a couple aged 38 and 42.

Many thanks
Susan


----------



## quincy (Oct 25, 2011)

Your tax is withheld from your pay by your employer and submitted to the government. The amount withheld is based on the information you provide your employer regarding likely deductions, ie dependents, tuition for school etc. You still file a yearly tax return, so it is possible that you could have to pay more if, for example, you have income from investments where no tax was withheld. 

In BC, the health care program is called Medical Services Program, MSP, and they have a good website explaining it. But for a family of 2, the monthly premium is $116. There is premium assistance available for lower incomes. Don't know if Alberta has a monthly premium, it may just be factored into your taxes. Their program is called Alberta Health Care Insurance Program AHCIP. Not sure how it works for Temporary Workers, but it is possible that there may be a 3 month waiting period from when you apply. You should probably contact them directly so you don't get any surprises.

a


hestersmum said:


> Hi
> We are looking to emigrate to Canada next year and Iam currently planning budgets based on affordability.
> 
> The way I understand it is that you pay federal and provincial tax on earnings. We would be emigrating with an LMO under the Temporary Foreign Workers Programme. Does anyone know if you pay your tax in with your earnings or if you have to submit a yearly tax return? If yearly, do people just save every month for this based on expected tax to pay?
> ...


----------



## hestersmum (Oct 29, 2012)

many thanks Quincy, that's really helpful


----------



## quincy (Oct 25, 2011)

Susan,
Keep in mind that the provincial health care programs don't cover things like:
dentist, eye check-ups,glasses, hearing aids, prescriptions. There are lists on the plan websites telling you what is and isn't covered. Good luck with your decision.


----------



## hestersmum (Oct 29, 2012)

Yes its a big decision. There are organisations out there selling "the dream", which I am sure is very attractive to many who have little or nothing better in their current situation. We both quite like it in Scotland, both have jobs, and doing "ok". We like nature and camping so Canada really appeals, and are both looking for somewhat of a new start in our lives, but it does probably mean a higher cost of living for us both, certainly in the first few years as we will be renting etc. Scary, but exciting at the same time. Thanks for the advice 
Susan


----------

