13. Why are we doing this topic?
⢠Becuz:
â It affects almost ALL SH Members â who here is an employee,an
employer or an IC? Everyone?
â From our experiences, it seems there are lots of misconceptions
(Dennis Rodman)
â Tax/financial and legal aspects are interwoven
14. This is the Plan:
⢠A. Richard will describe tax/financial aspects
⢠B. Iâll talk about legal factors: contract, HR
⢠D. Richard and I will have chat about issues
⢠E.
Weâll suggest some practical tips
⢠F.
Q&A
15. Employee vs.
Independent Contractor
â Tax considerations
January 14, 2014
Richard Weber, CPA, CA
Weber, CA, Tax and Accounting
info@webertaxaccounting.com
www.webertaxaccounting.com
16. Why does it matter whether
employee or independent
contractor (âICâ)?
1. Generally more tax deductions available to ICs than employees
2. ICs may be required to register for and charge HST
3. Employer relieved of payroll source deductions, remittances and reporting for
ICs
4. ICs save employers their share of CPP and EI
5. Potential increased responsibility for ICs to remit tax instalments than employees
6. âPersonal Services Businessâ (PSB) considerations for incorporated ICs
17. Why does it matter whether
employee or independent contractor
(âICâ)?
(continued)
Therefore ⌠the CRA cares about this!
It is common for the parties to characterize as an IC an individual
who really is an employee
18. Distinguishing an Employee and an IC
1. Having an Independent Contractor Agreement does not necessarily
make one an IC; the actual work relationship is determinative
2. Consider intention of the parties â contract of service (employee) vs.
contract for service (IC)
3. Classic common law factors:
- degree of control over individual
- does individual own tools, supplies or equipment?
- does individual have a chance for profit or risk of loss?
19. Harmful factors to classification as IC
1. Occupies a permanent position
2. Does not provide services for any other entity
3. Works at times and a location directed by the organization
4. Attends âin-houseâ meetings with employees of the organization
5. Receives a fixed and regular amount of remuneration
6. Receives group insurance benefits
7. Is not permitted to work for any competitive entities
20. Tax consequences if an IC is really
an employee
1. Employer liable to pay tax that should have been withheld at source
plus a
10% or 20% penalty thereon, plus arrears interest
.
2. If a criminal offence, possible fines and imprisonment
3. Liability of directors
4. May impact employerâs ability to claim input tax credit for GST / HST
charged by former IC
.
5. Employer liable to pay the individualâs and employerâs share of CPP
and EI
plus penalties and interest
.
22. Letâs Play Match Game!
Drugs, disability insurance, dental
plan, health club & car
benefits
Employee
Work at home in jammies, while
watching The View, if you
want to
Employee
Eligible for EI,WSIB, ESA
Employee
Deduct car, computers, rent to spouse,
wages to kids, biz dev exp
Independent Contractor
No liability for snafus, no credit risk, get
severance, no upside though
Independent Contractor
30. Silicon Halton Day @ Burlington HiVE
â˘
â˘
â˘
â˘
â˘
â˘
Jan. 24, 2014 Open 8 am â 6pm
Free for Silicon Halton members
Lunch & Learn
Not an 8-hr business social event
Do your work
Collide, in a good way
31. Learn Startup Lunch & Learn
⢠Jan. 24, 2014, 12 noon
⢠Bring your lunch
⢠Part of Silicon Halton Day @
Burlington HiVE
⢠Free
39. Search for better marketing resultsâŚ
Who
Product
Helping
Need
Give
Lover of data | Driver of business
Use your data to acquire and retain
Agencies and any business that has data
Partners and introductions
Referrals and friendly advice
@DataCRMarketing
41. www.GreenRack.com
GreenRack is a cloud-based publishing
service that lets you take advantage of the
latest mobile technologies to reach and
understand your audience, implement your
mobility strategy, and fulfill your
sustainability goals.
Carlos Paz-Soldan
carlos@tenet.com
carlos@GreenRack.com
Markets:
⢠Trade Shows
⢠Associations
⢠Conferences
⢠Retail &
Commercial
⢠Tourism Promo
⢠Infocentres
Lean Startup has been around for a number of years now and it's helped people learn how to run a smarter business that can keep up with the pace of information and technology. At this talk you'll learn what's new and how you can combine Lean Startup with visualization techniques to run a smarter business. Â This Lunch & Learn is being delivered by Jason Little, Agile Coach [@JasonLittle]. Free. Bring your own lunch.
The âGet to know your membersâ segment. ~3min introductions by local tech companies.
Tell us about...What the members are hopefully thinkingWho you are and your roleCool jobYour company nameCool nameYour Product(s) and/or Service(s)Hm, thatâs interestingWhat makes you unique?Wow, thatâs really interestingYour target client?I know someone in those companiesWhat would you like from Silicon Haltonâs members? Â Â I should give him a connection...What can you give back to Silicon Halton?I want to be his/her new best friendLastly,Make your intro non-promotional, no special time-limited offers - youâre not selling to the audienceWe like to have displayed one slide with your company, logo, etc., while you're giving your intro. Â Include you Twitter handle on your slidedeck - people will Tweet about you during your intro.Starting in April 2012, we video your intro and post to Youtube and link back to the post event blog, if you're ok with that. Â This will make you intro last and last and last...