Entrepreneurship & Small Business

Contracting, consulting, Bill 148

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  • Oct 15th, 2018 11:34 am
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[OP]
Newbie
Apr 19, 2010
4 posts
none

Contracting, consulting, Bill 148

I'm interested in gaining insight from other individual contract-based workers. How can an individual (incorporated as business) provide their services to another corporation?

Before Bill 148, it was simple to do this, but now there are multiple requirements to prove your independence. E.g., you have your own place of work, you set your own hours, you have employees, your own equipment is being used, etc. The host company is now liable for correctly classifying contractors and employees.

I'm curious how has the introduction of this bill worked out for people who were, or are, exclusively doing contract-based work by themselves? How are you doing it? How does one handle multiple clients?
3 replies
Deal Fanatic
User avatar
Mar 23, 2008
7095 posts
4060 upvotes
Edmonton
Bill 148 has nothing to do with contract/employee classifications, as far as I can tell. The CRA determines that relationship, and that's done at a federal level. Bill 148 is Ontario specific.

C
[OP]
Newbie
Apr 19, 2010
4 posts
none
Yea it's probably Ontario-specific but it makes employers liable for misclassification of its contractors.

I don't understand, how, as an individual, it's possible to do direct contracts with a corporation, or if it is possible. Every person is now either a temp, or a full-time employee, or self-employed with employees.
Newbie
Feb 7, 2018
10 posts
1 upvote
The only way to get around being classified on a federal level as a PSB (Personal Service Business) is to have multiple contracts in place. If you can show a clear contract that outlines a term (6 months, 1 year, etc) and show history that after each contract term, you have a different client, this would meet the CRA criteria for Independent Contractors. However, I would suggest finding a tiny contract during a longer contract for some side business to eliminate all chances of being categorized as a PSB or dependent contractor and being taxed/treated like an employee.

Justyn

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