# Both Independent Contractor AND Employee at same time?



## wearelopey (May 24, 2015)

Hey everyone,

Background: I've been working as an independent contractor for a motorcycle training school in Ontario for 3 (almost 4 years) now.

I started as a motorcycle instructor, but then started managing our various training sites (managing maintenance, travelling to collect outlying bikes in rural areas, bike buying, keeping training sites stocked with gas and supplies etc). This contract as site manager was slow to start, doing odd jobs here and there every so often. However, over time I have been working more and have gained more tasks that I handle within the company. I currently manage sites AND teach. I invoice separately for the two.

It has gotten to the point now where I may as well be an employee (payroll) for managing sites. However, I was wondering if my teaching would also be considered part of employment? They only hire independent contractors as instructors... And my worry would be that after a 44 hour work week as site manager they likely would not allow me to teach because of the need to pay overtime (it would cost more to let me teach vs booking another instructor).

I would not like to jeopardize my teaching hours because I've worked too many hours managing the sites. I also cannot simply deny work managing sites because I need to teach. Each course we teach as independent contractors is roughly 22 billable hours, in which we get paid as piecework (one flat fee). If it makes any difference my work as Site Manager I invoice hourly.

My question is whether I can be employed as Site Manager, and also be an independent contractor to the same company as a motorcycle instructor in order to avoid the mandatory overtime pay as an employee for both. The jobs are quite different... 

I've googled this and all I can find is that in the USA the IRS precedent is that yes you can be both, as long as they are specifically different positions... Not sure about up here in Canada though.

Part two:

If I did become an employee (payroll) my boss would like to get me a work van. He said he would like to pay outright for it and put it in my name so that I am liable for accidents affecting insurance etc. I'd love it as it would be a vehicle I'd be able to take home and have as my own when not working, whereas currently I'll use his work truck when/if I need to drive around (gas paid for by company credit card).

It's safe to assume that the company would pay for insurance, running costs, etc. I would have this as a take home vehicle as well.

I was wondering how this would work from a tax standpoint... Is there any benefit to it being in my name? Would I take all running/purchase costs as taxable income? Would I be able to expense gas etc even if the company was reimbursing me for it?

Any and all information welcome. Neither I or my boss have any know how with this particular situation. These are new waters as never has an employee also been an instructor... Also never have we wanted to give an employee their own vehicle...

Ask additional questions as you need.

Thanks!


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## CPA Candidate (Dec 15, 2013)

You can request a ruling, I'd read the following webpage. These can get tricky and there are many factors to consider and give weight to.
http://www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-e.html

Second item:
This is also tricky because I'm not sure who would have official ownership title to the vehicle and that is an important factor in determining the tax status. Being registered in your name may not mean having title.


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## Cal (Jun 17, 2009)

Sounds like some clarification would be needed and an accountant may be of assistance to clarify some of the tax laws for you.

For the first part, I am quite confident that you could do both.


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