As a CPA or business owner

It's essential to understand the difference between an employee and a contractor and the tax implications associated with hiring them. This course is designed to help you navigate the complex world of employment contracts and business relationships.

Employee vs Contractor Definitions

In the first section, we will discuss the definitions of an employee and a contractor, including the factors that differentiate the two. We will also cover the tax obligations and compliance requirements for businesses hiring employees or contractors.

Tax Implications for Businesses Hiring Contractors

The second section will delve into the tax implications for businesses hiring contractors. We will discuss:

How to ensure that the contractor is not an employee under the common law rules
How to obtain the contractor's GST/HST registration number
How to charge and remit GST/HST

Incorporated vs. Unincorporated Businesses

Next, we will explore the differences between incorporated and unincorporated businesses. We will look at:

The pros and cons of each
How they affect the tax obligations for businesses

GST/HST Registration and Collection

The course will also cover GST/HST registration and collection for both:

Sole proprietorship businesses
Corporation businesses

Tax Rates

We will explain the tax rates for incorporated and unincorporated businesses, including:

The federal corporate tax rate
The small business deduction tax rate

Deductions and Credits for Contractors

Finally, we will examine:

The deductions and credits available for contractors
How they differ from employees
A few examples to illustrate the tax implications for both employees and contractors

Course Outcome

By the end of this course, you will have a solid understanding of the tax implications for businesses hiring employees and contractors. You will also learn how to navigate the complex world of employment contracts and business relationships, enabling you to make informed decisions that benefit your business.

Topics Include

Employee vs Contractor Definitions
Factors Determining Employee vs Contractor Designation
Tax Implications for Businesses Hiring Employees
Tax Implications for Businesses Hiring Contractors
Form T5018 and Tax Implications
Incorporated vs. Unincorporated Businesses
GST/HST Registration and Collection
Tax Rates for Incorporated and Unincorporated Businesses
Considerations for Incorporation
GST/HST and Incorporated vs. Unincorporated Businesses
Deductions and Credits for Contractors and Differences from Employees
Case Studies
Misclassification