Personal Finance

Part-time instructor offer - Should i go on payroll or work as Independent Contractor

  • Last Updated:
  • Mar 14th, 2021 10:33 pm
[OP]
Newbie
Aug 8, 2019
28 posts
7 upvotes

Part-time instructor offer - Should i go on payroll or work as Independent Contractor

I was offered a part-time instructor position by a university in the GTA and i have the option to either go on payroll OR sign up as independent contract (IC). The IC path requires that I get insurance and have to incorporate.

Anyone else made this decision in the past and what are the pros and cons for each ?

Note - I already have a fulltime job permanent job with benefits.

Thanks
6 replies
Deal Addict
Sep 14, 2012
1867 posts
1344 upvotes
Montreal, QC
416thesix wrote: I was offered a part-time instructor position by a university in the GTA and i have the option to either go on payroll OR sign up as independent contract (IC). The IC path requires that I get insurance and have to incorporate.

Anyone else made this decision in the past and what are the pros and cons for each ?

Note - I already have a fulltime job permanent job with benefits.

Thanks
You might get better responses posting in the Careers section: careers-f58/
Deal Addict
Dec 12, 2009
4936 posts
2520 upvotes
Toronto
Is there a difference in what you will get paid?
Payroll is simple & brings all the benefits of being an employee. There may be pension options as well.
IC will be costly with the incorporation and insurance fees.
Deal Addict
User avatar
Mar 31, 2009
1199 posts
821 upvotes
Not really enough detail here to make a complete decision, but I'm guessing that if you're here asking the question you're asking - you probably should avoid having to create a corporation for the sake of a part time job. Probably just stick to being on payroll and be happy instead of complicating things exponentially.
Deal Addict
Mar 10, 2010
1467 posts
452 upvotes
Depending on how they pay you as a contractor you may also find that the earnings do not generate RRSP room (was the case when I was working for UWO ~10 years ago). In my case it was a no-brainer as being on payroll meant pension + benefits + RRSP room. The ~5% more they were offering to pay me as an independent contractor wasn't even close to making up the difference (and I didn't have to incorporate or get private insurance).
Sr. Member
Jul 6, 2019
740 posts
787 upvotes
For working on payroll you dont do anything
- Ur employer pays into the CPP and he deducts CPP from your pay
- Ur employer deducts EI from your pay
- Ur employer deducts tax from your pay

For independant contractor
- u have to incorporate
- u have to buy insurance
- u have to open payroll account + GST/HST account
- u have to pay 2x the CPP (Employer part + Employee part)
- u have to pay GST
- u have to file T2 return

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