tag:blogger.com,1999:blog-4402283548766807872.post6939571424526831242..comments2024-03-14T19:35:14.456-04:00Comments on The Blunt Bean Counter: I am a Contractor, Unless CRA Says OtherwiseThe Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-4402283548766807872.post-71735461002244540702016-03-10T16:50:43.521-05:002016-03-10T16:50:43.521-05:00Steve, this happens very often. There is really no...Steve, this happens very often. There is really not much you can do if you want your job. You may want to engage an accountant to understand how to file as a contactor while minimizing your tax risk should the CRA reassess your employer or you.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-10787559001742994152016-03-10T14:08:18.805-05:002016-03-10T14:08:18.805-05:00I need some help, my boss is forcing me to get a c...I need some help, my boss is forcing me to get a contractors license for like 600 bucks out of my pocket just because he says myself and other workers are contractors, yet he makes schedules,supplies tools, truck and gas, and controls every aspect! What can I do? He also doesn't pay my taxes in my pay cheques.Stevenoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-33896942880908047172015-08-17T12:07:20.548-04:002015-08-17T12:07:20.548-04:00Hi Anon
I agree with all your comments. Unfortuna...Hi Anon<br /><br />I agree with all your comments. Unfortunately, I do not provide specific tax advice on this blog, so I cannot comment on your situation.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-65684976010375853632015-08-15T10:16:54.433-04:002015-08-15T10:16:54.433-04:00This is such a minefield and makes it difficult fo...This is such a minefield and makes it difficult for new contractors starting out if they have 1 major client in the beginning (which is smart business). I'm curious as to my own situation. I consider myself a contractor - but will CRA? I am a service electrician and worked for a company for 2.5 years before I became a subcontractor for them. As an employee they provided some tools, a truck, cell phone, gas, healthcare etc. As a Contactor I now perform work for them 4-5 days per week BUT, have a few other clients and am slowly growing. I have my own truck, tools, insurance, WCB, disability, liability, cell phone etc. I have done some limited marketing, have a website and logo on my truck, and have done about 10% work for other clients in my 1st year and growing that side. Although I contract out for several days of the week for them and they book calls with their clients for my services, I have the risk when jobs fall through or have issues. I have the right to refuse or take work, however no contractor will exercise that too often with his number 1 client without good reason (if I refuse to many jobs for any client they will call someone else - so I find that a silly way to differentiate). My only concern is that I only have about 10% other work this 1st 6 months (although it's growing), and that there contract is a joke and says little about the relationship. I used to hear the old 80/20 rule, that if you did over 80% of your work for 1 company you were at greater risk of being considered an employee. Is that correct or is it more based on the relationship. Also since the contract sucks, is that the week point, or is the relationship more important. Thanks for any advice Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-10428256724993897272013-09-01T13:52:58.415-04:002013-09-01T13:52:58.415-04:00Anon, way to complicated a question for this blog ...Anon, way to complicated a question for this blog as deals with tax treaties, permanent establishments etc. This paper talks about some of the issues, although not contractors in specific. <br />http://trowbridge.ca/resources/USCompaniesinCanArticle_TTAN.pdfThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-46457585190551124232013-09-01T01:25:29.919-04:002013-09-01T01:25:29.919-04:00What if a person is contracting for a business out...What if a person is contracting for a business outside of Canada? I guess the CRA could rule you are an "employee," but the CRA can't force an American company (for example, it could be any other country) to withhold taxes and pay EI/CPP. Does the CRA just give up in this situation and let you be considered a contractor?<br /><br />And what if the person is incorporated? If the CRA can't deem you an employee because it has no jurisdiction over the business hiring you, then it seems it could not deem your corporation a Personal Services Business because you are not an "employee of the person or partnership to whom or to which the services were provided..."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-41272245973960434292013-04-29T10:21:15.449-04:002013-04-29T10:21:15.449-04:00CRA has ruled that I was an employee and not a con...CRA has ruled that I was an employee and not a contractor. Before the ruling I paid full freight for EI and CPP. What happens now? Does the employer pay me back?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-22841637990476570872012-10-01T17:19:32.389-04:002012-10-01T17:19:32.389-04:00Hi Anon
No, you should continue to charge HST. Di...Hi Anon<br /><br />No, you should continue to charge HST. Did you read my blog on personal servie business, it is more detaield-see link under tax topics on sidebar.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-59817100584569624812012-10-01T16:27:10.024-04:002012-10-01T16:27:10.024-04:00sadly i believe my business activity makes me a PS...sadly i believe my business activity makes me a PSB. sorry if this is dumb but am i wrongly charging my client GST now? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-71219071253249317082012-04-11T18:47:29.453-04:002012-04-11T18:47:29.453-04:00Gary,
You should read my blog on PSB's if yo...Gary, <br /><br />You should read my blog on PSB's if you have not (http://www.thebluntbeancounter.com/2012/01/is-your-corporation-personal-service.html)<br /><br />Yes, there is a five full-time rule, but that is in place for a "real" business with "real" employees. I dont think the CRA will consider your family to be full-time employees unless the facts dictate such (which I would doubt).The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-6359615376507841242012-04-11T15:23:55.195-04:002012-04-11T15:23:55.195-04:00Hi Mark,
There is an exception in PSB rule that i...Hi Mark,<br /><br />There is an exception in PSB rule that if a PSB is hiring more than 5 full time employees, the PSB rules won't apply. I wonder what's CRA's real intention on this exception? <br /><br />Usually a PSB has only one individual working for one company. There is no need to have more than 5 full time employees for this working person. The exception of PSB rule sounds like CRA allows more than 5 full time people in a PSB. Does it mean that this working person can hire 6 people (his wife, father, mother and his in-laws) to split his income? Is this allowed by CRA? <br /><br />Thanks,<br /><br />GaryAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-57576366622230141532012-03-15T14:40:56.896-04:002012-03-15T14:40:56.896-04:00Ali, you need to read this blog on Personal Servic...Ali, you need to read this blog on Personal Service Businesses http://www.thebluntbeancounter.com/2012/01/is-your-corporation-personal-service.html<br /><br />It should answer your questions and in particular read the link "The taxman cracks down on IT consultants."The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-77064044193913106512012-03-15T14:08:07.652-04:002012-03-15T14:08:07.652-04:00Hi Mark,
My question is in regards to incorporati...Hi Mark,<br /><br />My question is in regards to incorporating for the sheer purposes of doing a computer consulting contract for 1 yr period. This is to avoid high taxation, as presently I am paying close to 45% tax rate, on a direct employee contract. What are the pitfalls of this, and best process to follow in this type of incorporation?<br /><br /><br />thanks<br /><br />AliAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-89973894237523690942010-11-11T12:48:24.899-05:002010-11-11T12:48:24.899-05:00Fred:
The PSB rules were created to stop someone ...Fred:<br /><br />The PSB rules were created to stop someone who was an employee suddenly incorporating to achieve a better tax result, which actually is logical on CRA's behalf. To add some trivia to this, my recollection is the PSB rules came about when Ralph Sazio the GM of the Hamilton Tiger Cats incorporated himself even though he was the full time GM and employee of the Tiger Cats.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-1314005848068586482010-09-28T11:52:48.293-04:002010-09-28T11:52:48.293-04:00While self-employed people are not entitled to reg...While self-employed people are not entitled to regular EI benefits for the loss of a job, starting January 2011 self-employed individuals may be eligible for special EI benefits such as maternity and parental benefits. There are certain requirements in order to be eligible (such as potentially paying into the EI system for 12 months prior to making a claim) but with proper planning and advice from an accountant, self-employed individuals can enjoy certain special EI benefits. <br><br>This tip is especially useful to the young female health practitioner (i.e. doctor or dentist) who is looking to start a family in the near future.aaronhttp://www.blogger.com/profile/07417250637413409615noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-60636115645059418612010-10-01T10:01:53.684-04:002010-10-01T10:01:53.684-04:00What is the logic behind CRA's position re: . ...What is the logic behind CRA's position re: . "If CRA considers a PSB to be in place a punitive income tax is applied to the corporation.". Of course that implies there is logic and that's sort of an oxymoron when it comes to CRA.Frednoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-85005374990505323442010-10-05T16:13:43.118-04:002010-10-05T16:13:43.118-04:00Fred:The PSB rules were created to stop someone wh...Fred:<br><br>The PSB rules were created to stop someone who was an employee suddenly incorporating to achieve a better tax result, which actually is logical on CRA's behalf. To add some trivia to this, my recollection is the PSB rules came about when Ralph Sazio the GM of the Hamilton Tiger Cats incorporated himself even though he was the full time GM and employee of the Tiger Cats.Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.com