Employee vs selfemployed........another article that says employee.

Discussion in 'Canadian Truckers Forum' started by Grimm 1, Sep 3, 2014.

  1. Grimm 1

    Grimm 1 Light Load Member

    67
    50
    Jun 21, 2014
    0
    http://www.trucknews.com/features/driver-service-dilemma

    Why is the CRA not going after all the money they're owed?
    Why are the other governmental agencies not going after what they're owed as well?

    An article stating people in this industry are intentionally avoiding paying into the system which ultimately results in the rest of us paying more.
     
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. gokiddogo

    gokiddogo Road Train Member

    8,781
    14,751
    Mar 5, 2012
    Ontario Canada
    0
    Well that was a confusing read. Would I be wrong if:

    I hire an employee, I own the truck/trailer, buy the fuel, cover all road expenses, and pay them a wage, and take out EI, CPP, tax, and submit the taxes (also my company share) to CRA.

    or:

    Hire an owner operator, who has their own truck, financed through an outside bank, hauls my or their trailer, and an agreement is made for my company to pay his company x % of the total load, less fuel charged to card, and any other expenses in the agreement. It would be up to the independent to pay his own driver (himself) and therefore he can take it up any issues with CRA, no?
     
  4. Pullin2

    Pullin2 Crusty Canuck

    1,991
    3,611
    Nov 5, 2011
    Whoville Pub, Long Island
    0
    Hey kido, try that link again after 2.5 double rum and cokes ......... worked for me !

    :biggrin_25519:
     
  5. Grimm 1

    Grimm 1 Light Load Member

    67
    50
    Jun 21, 2014
    0
    Gokiddogo........you own the gear and perform deductions and submit them then that would be considered an employee/enployer relationship.

    A guy owns his own gear and pays for it through the monies you have paid him, is able to refuse work and able to put anyone to work using his own gear then he MAY be considered a subcobtractor. Ad we all know that Mackie lost an argument about the fact of wether or not an O/O can be considered an independant contractor.....Mackie lost. The court said for the purposes of bargaining they were employees.

    At the end of the day...... unless we have our own authority.....were most likely all emoyees in the eyes of the law regardless of how the paperwork is done.
     
  6. allan5oh

    allan5oh Road Train Member

    1,557
    556
    Jan 6, 2010
    Winnipeg, mb
    0
    You're a bit confused here. A self-employed person pays no EI, how can you pay EI when you employ yourself? They also pay both halves of CPP. Taxes still have to be paid. The money is still entering the system, the government is not being short changed. However the driver may be. They're no longer eligible for EI, and even though their gross might be higher their net may actually be lower (due to having to pay more CPP). Eventually after two years CRA will want quarterlies as well.

    The other issue is per diem. This is a whole another ball of wax.
     
  7. Grimm 1

    Grimm 1 Light Load Member

    67
    50
    Jun 21, 2014
    0
    I am refering to the fact that many people who say they are "subcobtractors" do not actually meet the basic criteria set by the Canada revenue agency. Which would mean that these drivers are not entitled to the deductions which they are claiming. Cars, gas and a room in their house as an office. All deductions that they're not entitled too.

    Driver services are very keen to offer $18/hr + HST to budding "business men" who see themselves ad subcobtractors which when audited would actually see them as employees.

    Take note in the article in regards to the section which states drivers are closing the HST accounts and NOT submitting the tax.
    Canada pension plan is also missing out on revenue with the self employed driver not paying into the program. Under an employee/emoloyer relationship the emoloyer would deduct the money and submit it.

    If I am not understanding you explain it to me again. I have a very keen Intetest in this aspect of our industry simply because this scenario is costing honest working drivers money in the form of stagnant wages.
     
  8. allan5oh

    allan5oh Road Train Member

    1,557
    556
    Jan 6, 2010
    Winnipeg, mb
    0
    CPP is still collected if you're an employee, self-employed, or a corporation. Just the way it is collected is different. You cannot deduct your car, gas and room in the house unless you're a legit business, and even then it's very small. For example you cannot deduct the miles to and from work. It is only after you arrive at work and are doing on-duty things like picking up parts. CRA is very strict about this.

    Deducting a room in your home is a very very small deduction. Again that's only if you're a legit business.
     
  9. Grimm 1

    Grimm 1 Light Load Member

    67
    50
    Jun 21, 2014
    0
    Ok.....you're not telling me anything I don't know. I just wanted to make sure.

    Iam talking along the lines of the article and the article states that there are drivers reporting to be self employed when they are in actuality employee.

    In Ontario you don't even need a social insurance number. You simply pay yourself through the corporation you hold the incorporation number you hold. Driver services don't care or even have to care what is done with the money once it leaves their hands, as long as they're paying to a corporation that has an HST number they're all good in the eyes of the law.

    If "pseudo" selfemployed drivers are shutting down HST accounts what makes us think that they're paying CCP?
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.