Focus on Benefits - caution related to contractors on your employee benefit plan


Allan Friesen here, Certified Employee Benefit Specialist, with another tip to help you get the best value out of your employee benefit program. This one I guess is more of a cautionary tale than a tip.

The Canada Revenue Agency has some rules that they use to determine if somebody's an employee or somebody's on contract.

So why does that matter to you? Here's why, if you add people onto your Employee Benefit Program who you regard as a contractor, they regard themselves as a contractor, that might be something that tips the the scale in terms of Canada Revenue Agency saying no, no, you are an employee, not a contractor

Basically they have a list of 10 items that they look at - who controls the work, who owns the tools, who would decide where to go where, those kinda things.One of those is if that individual is on the Employee Benefit Program up the employer.

So here's the concern. You regard the person as being a contractor, they regard themselves as a contractor, later on Canada...

Channel:  Allan Friesen
Topics:  Society