Taxes as an Independent Contractor hired via University Co-Op while still a student? - Page 3
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Thread: Taxes as an Independent Contractor hired via University Co-Op while still a student?

  1. #21
    Senior Member sags's Avatar
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    The WSIB is another complete jungle to get through when the employment status isn't quite clear.

    They ask questions to determine the premiums or if you are required to pay for the insurance.

    If you are sort of an employee and sort of a sole proprietor, you can't answer the questions properly.

    As a result a lot of contractors don't register with the WSIB and then they get caught working without a certificate.

    Fines for working without a clearance certificate are very high........up to $100,000.

    Someone planted a tree a long time ago so I can sit in the shade.

  2. #22
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    As the owner of a company, you are not required to have WSIB, only employees of the company are required to have it. If your son hired an asssitant, he'd need to get coverage for them, but he doesn't need coverage for himself, even if he works for someone else as a contractor.

    Even still, premiums are determined by your income and the industry in which you are working, not to mention they are very cheap for a single person. The "problem" can be sorted out with a short phone call, the questions aren't difficult (what industry are you working in, how much money are you getting paid, etc.).

    Keep trying to make a mountain out of a mole hill though.

    You know, I understand that society works really hard to train people to be employees, and that most people fear anything else...you're providing an excellent example of this.

    Next, tell me about how insecure it is to be self employed. I know I've worked for my company my entire life, even while starting others. I can't think of any of my friends who've been employed with the same company for even half as long as an employee. I don't have to worry about my company screwing up the way it's run and costing me my job because of incompetent managers, I have control over all of that.

    Or, how about benefits...

    Turns out, you pay for that as well...with lower pay. Remember there is only so much money to go around. If you're young and healthy, benefits probably cost more than paying directly...oh, and paying directly is a tax deduction.

    If you really want insurance, guess what, you fill out the same form and send it in to an insurance company, except you can choose from many insurance companies and choose coverage better suited to your needs instead of some generic policy picked by your company.

    Of course, if you actually do the math and are generally healthy, insurance at best works out to a payment plan, not a real benefit. Add up how much you've paid over the years and subtract your claims. Not to mention, the benefits end with employment usually...and then you need to start all over again, maybe a different plan, etc.

    What else...pension plan? I prefer to be in control of my investments, I've done a lot better than any company plan....not to mention I can choose any plan as opposed to the one given to me.

    We could go on and on if you like...

    It's obvious you've never really been self employed, or run a company. I understand that you probably fear things that are different. You're not alone. Heck, my entire extended family don't understand how I ever survive, they can't imagine that I'm successful even when they see the results, I get it.

    The truth is, it's not much different than going the paycheque route, there are usually easy solutions to quell your "fears" if you spend a little time educating yourself instead of worrying...but, then again, most people don't look for the solutions, they get paralyzed by the problem instead.

    That's what really is the difference between those who succeed and those who don't.

    Btw, I'm not saying being self employed is for everyone, far from it. I personally believe there are only a few people who can be successful at it. Im just pointing out that it's not really much harder or riskier to do if you wanted to and can get over your fear of doing something different.

    I also don't say that mockingly, getting over the fear, and peer pressure, of being different is very hard. Our species has evolved because of this fear, it's ingrained in us and enforced by our education system. There's a reason why poets call it "the road less travelled" and write about it longingly...because most people would never even consider going there, even though we may secretly long to.
    Last edited by Just a Guy; 2017-02-20 at 11:05 AM.
    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

  3. #23
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    I think the OP and SAGS son should either quite their shady "boss" or start treating themselves like a true independent business. That means no more "paychecks" - you invoice your "customer" and include HST if you are required (or choose to be registered). If the "boss" says you have to do it his way remind him you are "independent" and that he can't unilaterally impose the conditions - it's a business-to-business relationship after all. If he doesn't like it, he can choose to stop doing business with you (note, he can't "fire" you, since he never "hired" you).

    Note that as an independent business, what HST he charges to his customers is of no concern to you. All you care is about the HST you charge to him, which is added on after your normal charges. Also note, you at any time could raise your rates, charge extra fees, etc. Then it's up to your "customer" if he accepts the new prices, or goes elsewhere.

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  5. #24
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    Anyone who thinks you can run a business "your way" probably won't be in business very long. If you think "I'll start my own business because I hate interviews", you're sorely mistaken. Each new customer is a job interview. If you think "I'll work for myself and be my own boss", are also mistaken. Every customer is your boss, each one can and will fire you...no severance, no notice.

    Running your own company isn't easy, and it's not for everyone. There are good reasons why most companies fail within three years. I'm sure mistaken assumptions about what owning your own business will be like plays a major role in it.
    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

  6. #25
    Senior Member sags's Avatar
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    To be accurate.....

    As of January 1, 2013, independent operators in construction must register with the WSIB, report their earnings and pay premiums.

    The WSIB considers you to be an independent operator in construction if:

    You perform Class G construction work.
    You do not employ any workers.
    You work as contractor or subcontractor for more than one person during an 18-month period.
    You report as ‘self employed’ to a government agency, like the CRA.

    OR

    You perform Class G construction work.
    You are an Executive Officer.
    Your corporation does not employ any workers (besides you).
    You work as contractor or subcontractor for more than one person during an 18-month period.
    Under the new rules, you are now both a ‘deemed worker’ and a ‘deemed employer.’ This means that you will be covered by the WSIB as a worker and will have to report your earnings and pay premiums to the WSIB as an employer.


    http://needwsibcoverage.ca/who-needs...ithout-workers

    Class G construction work covers just about everything.

    http://www.wsib.on.ca/WSIBPortal/fac...%3D42kdfcsq7_4

    There is an exception for "home renovators" performing some specified work directly for home owners, providing the work is not being performed on a property that is being renovated for rental or resale purposes.

    It is also the responsibility of the "hiring party" to ensure contractors possess a WSIB certificate when required.

    Last edited by sags; Today at 04:29 AM.
    Someone planted a tree a long time ago so I can sit in the shade.

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