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.
Employee vs selfemployed........another article that says employee.
Discussion in 'Canadian Truckers Forum' started by Grimm 1, Sep 3, 2014.
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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? -
Hey kido, try that link again after 2.5 double rum and cokes ......... worked for me !
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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. -
The other issue is per diem. This is a whole another ball of wax. -
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. -
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. -
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?
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