Working in Canada 1

[redgdon]

Hi all,

I am an HVAC engineer with 8 years experience in a balance of design and site working.

I may have an opportunity to work in Canada. Can anybody tell me what I might expect in terms of salary and what the situation with taxes are.

Many Thanks

 

[PatCouture]

Regarding the taxes, it depends on the province you're headed to! In Alberta I heard that the taxes are fairly low compared to the rest of canada.

 

[RDK]

For salary concerns, every Canadian provincial association has a salary survey of its members. You should be easily able to find the links on any association web site.

Try

http://www.apergm.mb.ca

for starters. Generally a fully qualified senior engineer would be around the $80,000 mark.

Be advised that registration is mandatory here to even call yourself an engineer. It requires 4 years experience, one of which must be in North America, letters of reference and a professional practice exam which is simply an open book take home exam designed to force you to read the local engineering act, code of ethics and by-laws of your association. No EIT or PE exams.

Once registered in one province there is a mobility agreement in place that only requires an application for registration in another province. You would be registered in a second province within a couple weeks of sending the application away with most of this taken up in the mail system.

Taxes in Canada are a little higher in percentage of GDP than in the US but since we have a slightly lower GDP per capita it works out a little less than in absolute dollars terms . The income tax is structured a little differently. Deductions and income that you would include in the US are not used in Canada. For example interest paid is not deductible but you do not have to pay income tax on lottery winnings.

Federal taxes are:

16% on the first $35,595 of taxable income;
22% on the next $35,595 of taxable income;
26% on the next $44,549 of taxable income; and
29% of taxable income over $115,739.

See

http://www.cra-arc.gc.ca/tax/individuals/faq/taxrates-e.html

for provincial rates.

In addition there is a 7% GST on almost everything purchased. Most provinces except Alberta also have a provincial sales tax. In the Maritimes this is harmonized with the GST and is 15% total. In the other provinces it is usually between 6 and 8 %.

Cost of living is very simular to the US and varies depending on location with the larger cities the most expensive and the smaller towns less expensive.

What part of Canada are you heading for?

Rick Kitson MBA P.Eng

Construction Project Management
From conception to completion

http://www.kitsonengineering.com

 

[planedr]

PPE Exam take home? Sorry mate just wrote mine, it ain't. Not in any of the provinces. 3 hours of what is the most correct response to....

Depending where or if you have a degree it may not be recognized. Depending on whether or not you have a PE it may or may not be recognized. You may be required to write exams to provide acedemic equivalence.

The interprovincial transfer agreements are excellant unlike the US interstate agreements. Be wary of the transfer agreements from the US to Canada. Although I think the Canadian side is more reasonable.

Engineers are self regulating through legislation in provinces as opposed to being directly regulated in the US by the states.

I did an equivalence route with APEGBC, assuming my "not take home" PPE exam went well. I will get my PEng. Though there is a transference agreement with Tx. They will not recognize my PEng here as I do not have a degree. Doesn't matter as I am under an industry exemption but be careful. Ensure you can in fact be registered if it is a work requirement.

Al CET EIT

 

[RDK]

panedr

It is a take home exam at least in Manitoba.

It was when I wrote it in 1977 and was when my son wrote it last week.

NAFTA has a provision in it that requires both countries to recognize each other’s professional designation. It is my understanding that with enough experience that a Canadian P.Eng should be able to get a PE simply by applying. Unfortunately since most states don’t care about international agreements made by the US governments as far as I know only Texas allows a PE based on Canadian registration and experience.

I really don’t know about US PE’s getting P.Eng in Canada but anyone with 4 years experience ( at least 1 in North America), appropriate education plus letters of reference from other engineers etc can get a P.Eng

Rick Kitson MBA P.Eng

Construction Project Management
From conception to completion

http://www.kitsonengineering.com

 

[gregha04756]

Hi redgdon,

The Canadian Council of Professional Engineers (CCPE) website should be a good source of information for you. There is a section for immigration and assessment, and links to each of the provincial and territorial association websites.

In New Brunswick, where I reside now, the PPE is a 3 hour closed book essay-style exam based on ethics, law and the provincial act and bylaws.

You didn't specify, but I assume you are considering relocating to Canada from the US. Most of the following observations are anecdotal, but I think they fairly represent the situation. Having lived and worked on both sides of the border, I can say with some certainty that US and Canadian salaries are comparable, at least numerically. The exchange rate affects the purchasing power of the Canadian dollar more than the US dollar, as Canadian prices for most durable goods seem to be the US price plus whatever the rate of exchange is. In addition, as RDK noted, sales taxes are typically higher in Canadian provinces than in US states. In some provinces, such as PEI, you have the situation where tax is paid on tax, as the federal GST of 7% is applied to the price of an item, then the provincial sales tax of 10% is added, resulting in an effective sales tax of about 18%. I think food prices are higher overall, especially for items regulated by provincial marketing boards. Dairy products, poultry, and beef are among those. Energy prices are higher too, at least for petroleum products. Electricity rates may be lower. In New Brunswick, elecricity rates are lower than in neighboring Maine, but they will be increasing in NB. Canadian taxes may be generally higher, but basic medical insurance is included in those taxes, and is not dependent on employment. In other words if you lose your job, you don't lose medical insurance. In Canada, you pay tax on your "world" income. Mortgage interest isn't deductible, as pointed out by RDK above. The Canadian Registered Retirement Savings Plan, or RRSP, is comparable to the US IRA as a tax-deferred savings scheme. To my knowledge, contributions to an IRA are not deductible from your Canadian income, nor are contributions to an RRSP deductible from US income.

While checking information for this post I came across the following article that you may find interesting, at

http://www.fool.com/news/commentary/2005/commentary05042110.htm

I hope this is useful to you.


Good Luck,
Greg Hansen
Expectation is the mother of disappointment

 

[RDK]

Two other things not mentioned are the Canada Pension Plan and Employment Insurance deductions.

Together with taxes these are the only deductions on income mandated by the government. You may have an employers sponsored pension play or insurance to be deducted as well.

The Canada Pension Plan is just under 5% of your salary up to the limit of around $40,000. The employer pays a similar amount. For this you are entitled to a pension, the amount based on life long contributions, at age 60 or 65 without any reductions (it increases if you take it later than 65.)

As far as pension plans go, I much rather have the extra 10% in an RRSP than in some government plan. The return would be much greater.

For someone making $84,000 a year or $7,000 a month in Manitoba (typical for a fully qualified senior level engineer) and no dependants (claim code 0) the current deductions would be

Salary 7,000.00
Federal Tax 1,253.85
Provincial Tax 867.70
CPP 332.06
EI 136.50
Total Deductions 2,590.11
Net Pay 4,409.89

At the highest claim code (code 10) total tax would drop to less than $1,800. You need lots of dependants or other known deductions such as employer paying directly to RRSP on your behalf etc.

You can download the tax computer program from the Canadian Customs and Revenue web site. They call them Tables on Diskette or TOD. Google CCRA and TOD to find a link, be careful because they update them every 6 months but still have all the old ones on the web site.

Note that EI and CPP would go to zero after the annual maximums were reached. If you change employers during the year you would once again be subject to these being withheld but you would get any over contribution returned at tax filing time.


Rick Kitson MBA P.Eng

Construction Project Management
From conception to completion

http://www.kitsonengineering.com

 

[planedr]

The BC, Alta, and Ont PPE exams are not take home. How Manitoba can issue a take home and comply with the Canadian Standard is a mystery. I wrote mine last week (BC) and had a few hoops to jump through due to "national standards". I am betting the term is not used in Manitoba in the same context. My exams was not a test on just the BC Society's bylaws. If it is maybe I should have registered there?

Cost of living is an issue. I could find no comparisons before I came to the states. My view, going from Vancouver to Dallas, is it is the same dollar for dollar. Although it would cost 750K minimum in BC for the house I got here for 200K. Same in Alberta now from what I here from home. From Cali or Seattle you wouldn't notice any difference for houses. My benefits here are better. For the same yearly salary I am in a very similiar position budget wise. It will depend on circumstance. Home family etc. I find the amount of my pay that goes to taxes and medical costs are very similiar to that in BC. I am out mountains, but ahead everywhere else.

Texas allows me to contribute to my Canadian RRSP's but the Canadian requirements are too much hassle. I haven't come close to figuring all that out yet, maybe in 10 more years....

Tx no state tax
property tax - 3X the highest area in BC house has same appraised value
Tx water and services not part of home taxes $900 year
Auto Insurance Tx 1/3 the cost of ICBC
House insurance Tx 3X BC
Family activities (swimming libraries) 3X BC

 

[redgdon]

Thank.

You've all been a great help.