silicon halton meetup 51 deck
DESCRIPTION
Deck from Silicon Halton Meetup 51 January 14, 2014 www.siliconhalton.com Halton Region, Ontario, CanadaTRANSCRIPT
www.siliconhalton.comlinkedin/siliconhalton@siliconhalton
Meetup #51: The Independent Contractor ShuffleJanuary 14, 2014
• 7:15 pm Welcome • 7:20 pm Announcements• 7:30 pm Keynote:
The Independent Contractor Shuffle
• 8:15 pm Mark Your Calendars• 8:20 pm Get To Know Your
Members• 8:30 pm Open Floor• 8:35 pm Networking
Agenda
Show of Hands
• 960+ members• 51 meetups• 8 peer2peer groups• Hundreds of LinkedIn
discussions
2013 Highlights!
• 51 Meetups and counting• 2 Pitch Nights• New P2P - Technology Product
Commercialization• 4 Workshops• Sponsorship - SB Partners• Silicon Halton Days @ Burlington HiVE
2013 Highlights! Burlington Post, March 21, 2013: http://bit.ly/XBaR5E
Focused on:• Silicon Halton• Enable Education• yapAgame• 3Peaks
Thx to @HughBlack
2013 Highlights! Oakville News, Building Hi-Tech Halton. May 2013: http://oakvillenews.org/silicon-halton
2013 Highlights!
Sponsorship:
Agenda
Keynote
Meetup 51: The Independent Contractor Shuffle
Presenters:• Richard Weber, CA• Grant Buchan-Terrell, JD
Playing the IC Shuffle with CRA and ESA
IC or Not IC?
• Becuz:
– It affects almost ALL SH Members – who here is an employee,an employer or an IC? Everyone?
– From our experiences, it seems there are lots of misconceptions (Dennis Rodman)
– Tax/financial and legal aspects are interwoven
Why are we doing this topic?
• A. Richard will describe tax/financial aspects
• B. I’ll talk about legal factors: contract, HR
• D. Richard and I will have chat about issues
• E. We’ll suggest some practical tips
• F. Q & A
This is the Plan:
Employee vs. Independent Contractor – Tax considerations January 14, 2014
Richard Weber, CPA, CA Weber, CA, Tax and Accounting
[email protected] www.webertaxaccounting.com
Why does it matter whether employee or independent contractor (“IC”)?
1. Generally more tax deductions available to ICs than employees
2. ICs may be required to register for and charge HST
3. Employer relieved of payroll source deductions, remittances and reporting for ICs
4. ICs save employers their share of CPP and EI
5. Potential increased responsibility for ICs to remit tax instalments than employees
6. “Personal Services Business” (PSB) considerations for incorporated ICs
Why does it matter whether employee or independent contractor (“IC”)?(continued)
Therefore … the CRA cares about this!
It is common for the parties to characterize as an IC an individual who really is an employee
Distinguishing an Employee and an IC
1. Having an Independent Contractor Agreement does not necessarily make one an IC; the actual work relationship is determinative
2. Consider intention of the parties – contract of service (employee) vs. contract for service (IC)
3. Classic common law factors:
- degree of control over individual- does individual own tools, supplies or equipment?- does individual have a chance for profit or risk of loss?
Harmful factors to classification as IC
1.Occupies a permanent position
2.Does not provide services for any other entity
3.Works at times and a location directed by the organization
4.Attends “in-house” meetings with employees of the organization
5.Receives a fixed and regular amount of remuneration
6.Receives group insurance benefits
7.Is not permitted to work for any competitive entities
Tax consequences if an IC is really an employee
1.Employer liable to pay tax that should have been withheld at source plus a . 10% or 20% penalty thereon, plus arrears interest
2.If a criminal offence, possible fines and imprisonment
3.Liability of directors
4.May impact employer’s ability to claim input tax credit for GST / HST . charged by former IC
5.Employer liable to pay the individual’s and employer’s share of CPP and EI . plus penalties and interest
Legal Stuffby gbt
of gbtlawTM
@OntBizAttorney
Drugs, disability insurance, dental plan, health club &
car benefits
Work at home in jammies, while watching The View,
if you want to
Eligible for EI,WSIB, ESA
Deduct car, computers, rent to spouse, wages to kids, biz
dev exp
No liability for snafus, no credit risk, get severance, no
upside though
Employee
Employee
Employee
Independent Contractor
Independent Contractor
Let’s Play Match Game!
How do you fire an IC?
Carefully!Principal can’t just cancel the deal.
Look to termination clause.
Can you be an IC without a written agreement?
Sure, and then both parties can guess what the terms are. Fun!
Do employees have any duties to employer?
Yes, different by degree; employment agreement can
beef up beyond common law.
What if boss says you must sign IC contract?
Call your lawyer! Hedge your bets. Never quit.
What are biggest IC Agreement issues?
1. Non-compete2. Exclusivity
3. Warranties/Indemnities4. Your Services vs. Resold Software
5. Governing Law
Top Tips for ICs:
1. Talk to your CA first2. Write down key biz terms
3. Use a good precedent4. Then get legal advice
5. Don’t sign one thing & do another!6. If things change, revisit
Mark Your Calendars
Silicon Halton Day @ Burlington HiVE• Jan. 24, 2014 Open 8 am – 6pm• Free for Silicon Halton members• Lunch & Learn• Not an 8-hr business social event• Do your work• Collide, in a good way
Learn Startup Lunch & Learn• Jan. 24, 2014, 12 noon• Bring your lunch• Part of Silicon Halton Day @
Burlington HiVE• Free
Silicon Halton “Special” Day @ Burlington HiVE• March 26, 2014• 9 x 45-min workshops from 1 pm – 4 pm
1pm - 2pm Workshop 1 Workshop 2 Workshop 3
2pm - 3pm Workshop 4 Workshop 5 Workshop 6
3pm - 4pm Workshop 7 Workshop 8 Workshop 9
SoloPreneur Peer2Peer #31• Leveraging members’ content • Jan. 16, 2014, @ 8:30 am• Hampton Restaurant at the
Quality Suites Hotel, Oakville
Meetup 52: Secrets to Podcasting
Success, Donna Papacosta
• Feb. 11, 2014• New Milton Education Village
Innovation Centre
#G2KYM(Get to Know Your Member)
Aaron Lalvani
NEED NEW SLIDE
@LalvaniGroup
Dmytro Marushkevych
Search for better marketing results…
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Carlos [email protected]
GreenRack is a cloud-based publishing service that lets you take advantage of the latest mobile technologies to reach and understand your audience, implement your mobility strategy, and fulfill your sustainability goals.
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