Self-employed dental hygienist taxes in Alberta, made simple.

Alberta lets registered dental hygienists practise independently, and plenty of hygienists now work as independent contractors. Some temp across several clinics in Edmonton, St. Albert and Sherwood Park; others run mobile or independent practices. Either way, self-employed dental hygienist taxes in Alberta work differently from a payroll job. Nobody deducts income tax or CPP, and the paperwork is yours.

This guide covers how to tell if you're really self-employed, how GST applies, what you can deduct, and how to stay ahead of CRA's deadlines.

1Contractor or employee?

A clinic calling you a contractor doesn't make you one. CRA looks at the actual working relationship. Signs you're self-employed include:

• You work for several clinics and choose which shifts to accept
• You invoice for your services and set or negotiate your rates
• You carry your own liability insurance and pay your own registration
• You supply some of your own equipment, like loupes and instruments
• You can earn more by managing your time and clients well

Signs it looks more like employment: one clinic, fixed hours, its schedule and procedures, its equipment, and no real business of your own. If you're in that position as a "contractor", talk to your accountant. Getting the classification wrong can mean missed CPP and EI that someone ends up owing.

Invoicing clinics

If you're self-employed, invoice like a business: your name or business name, the clinic's name, the dates and hours worked, your rate and the total. Number your invoices and track which ones are paid. Clean invoices make your income easy to prove, and they stop payments from slipping through the cracks when you work for several offices.

2GST: why most hygienists don't charge it

Dental hygiene services provided to patients are generally GST-exempt health care services. If you're a registered hygienist providing professional services, you usually don't charge GST on that work, and you don't need to register just because your income passes $30,000.

The trade-off: when your sales are exempt, you can't claim input tax credits on the GST you pay. The GST on your loupes, courses and supplies is simply part of their cost, which you deduct for income tax.

Two situations deserve a closer look:

• Cosmetic services. Services done purely for appearance, such as cosmetic teeth whitening, are generally taxable. If you offer them and they pass $30,000 over four quarters, GST registration comes into play.
• Product sales and billing arrangements. Selling products, or billing a clinic in a way that changes what you're actually supplying, can change the GST picture. Confirm with your accountant if your setup is unusual.

Our physiotherapist bookkeeping guide covers the same exempt-services issue from another profession's point of view.

3Self-employed dental hygienist taxes in Alberta: a worked example

Say you temp across three clinics in Edmonton and Leduc. Here's a simplified year:

A new pair of loupes is a capital purchase, claimed through capital cost allowance over several years rather than all at once. On the $69,500 of profit, you'll pay federal and Alberta income tax plus both the employee and employer shares of CPP. That combined bill surprises many hygienists in their first year of contracting, because a payroll job hid half of it.

4Deductions worth tracking

• Registration and dues: your college fees and professional association membership
• Insurance: professional liability coverage
• Continuing education: courses that maintain or upgrade your skills
• Equipment: loupes, instruments, headlights, and mobile equipment if you run a mobile practice
• Vehicle: travel between clinics, with a logbook. Driving from home to a single clinic is usually personal unless your home is your main place of business.
• Phone, software and scheduling tools, business share
• Home office, if you meet CRA's tests, for admin and billing
• Professional fees for bookkeeping and tax preparation

Our guide to self-employed tax deductions in Alberta covers the general rules, including vehicle and home office claims.

5Deadlines and instalments

Your personal tax return is due June 15, but any tax owing is due April 30. If your net tax owing is more than $3,000 in the current year and either of the two previous years, CRA expects quarterly instalments:

Tap each instalment once it's paid.

Some clinics issue a T4A for fees they paid you; others don't. Either way, report all your income, and make sure your own records match any slips you receive. Our post on quarterly tax instalments in Alberta explains how CRA calculates the amounts.

No employer benefits, so plan your own

Contracting means no employer pension and no EI deducted from your pay. Your RRSP room is based on earned income, which includes your net self-employment income, so contributions can also lower your tax. Self-employed people can opt into EI special benefits, such as maternity and parental benefits, through an agreement with Service Canada. It's optional and has its own waiting period, so look into it well before you need it.

6A simple bookkeeping routine

As your income grows, you may start wondering about incorporating. Whether that's available and worthwhile depends on your college's rules and your numbers, so it's a conversation for your accountant.

Plum works with health practitioners across Edmonton, St. Albert, Sherwood Park and Leduc on flat monthly fees. If you've started contracting and want your books and tax set up properly, book a free 15-minute call.

7Questions people ask

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This article is general information for Alberta businesses and isn't tax or legal advice. Rules and thresholds change, so confirm your situation with your accountant or CRA.