How to pay a sub-contractor

... and outhat of that .44 he has to pay cpp twice at least and perhaps ei + 1.4ei as he is the driver and the company ... that .44 shrinks real fast
Also take off fed and provincial tax and he would be better off just collecting a check not doing any calculations..

 

Therein lies the problem since most of these"sub-contractors" do their best to fly under the radar and don't pay the tax or CPP ,Ei etc.

 

That's OK, if (when) the tax man catches up the amount found owing + penalty will hurt like hell to pay ... and they aren't nice about collecting it either... they will eventually just take it or your assets..

 

At .44 cents I'm guessing there isn't much for assets.

 

The way Toronto Trucker is conducting business reminds of someone who thinks he's an expert but unfortunately it's in a field in which he has no special knowledge.

 

Prairie Boy,

Really?

Why would I be here asking people for advice if I thought I was an expert? If you don't want to share anything positive then perhaps you should enjoy your retirement Mr 56 years of experience.

I guess you're the expert with all that experience.

My thread asks how to pay a sub-contractor... it's a question incase you missed that part.

 

Heed the warnings. If your driver is making more than you its spells trouble. I also agree with PB but who really cares. In the end it's s learn as you go but from the questions your asking your in for a world of hurting. Good luck.

 

So how does one learn without experience and asking questions?

I will be speaking with my accountant this week to figure out the whole sub-contractor/employee status and payroll.

 

To clarify, when I say my driver is making more than me I am not including the money I bank for maintenance expenses.

 

It's illegal to have an employee work as a subcontractor. If he owned the truck it would be different. You think he's well paid???? Do the math, he has to pay his own CPP, Self employed he can't qualify for EI, Income tax has to be paid monthly based on average earnings. What if he gets hurt? Who pays for the Compensation Premiums. There are a lot of people on this forum that know me personally. I have been around for 56 years. Owned 2 companies and sold them both at a hefty profit. All my drivers belonged to the Teamsters Union and were very well paid plus I paid them a Living out allowance of up to $185.00 a day, paid by the hour for every second they worked.Holiday pay rate the last few years was 10% of gross. Paid for Pension plan, and Health & Welfare benefits. I still work on a consulting basis and get very well paid for using the knowledge I accumulated in the last 56 years.

At 44 cents, you're screwing him. Factor in pre trip, fuel, load checks etc etc etc. Lucky to average 50 MPH @ 44 cents a mile means your paying him $22.00 an hour gross. Now deduct, CPP, deduct, Workers Comp, Deduct Income Tax. Tell him to come to Alberta, Notley will guarantee him $15.00 an hour at McDonalds and they pay his employment insurance, income tax deducted and remitted, CPP, Workers comp etc.

Why buy a truck and then ask for advice???? Get the advice before investing.
What you're doing is like hammering at a problem, forget the problem and concentrate on the solution.
What's the name of your company that you operate under? Let me know and you will see how fast I can have you shut down for not having your driver as an employee and he certainly isn't a sub contractor.


Give you something to read and hopefully educate you.


General Conditions of a Service Contract - Innovation, Science and ...
https://www.ic.gc.ca/eic/site/icgc.nsf/eng/h_0

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1.1.2 "Basis of Payment" defines what a contractor will be paid for the service or good ... 1.1.6 "Contracting Authority" means the person designated by that title in the ... 5.4 All services rendered under the Contract must, at the time of acceptance, ... 6.4 Even if Canada consents to a subcontract, the Contractor is responsible ...
EMPLOYEE OR INDEPENDENT CONTRACTOR (SELF EMPLOYED ...
www.dalelessmann.com/news/.../employee-or-independent-contractor-self-employed

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Sep 10, 2013 - Were invoices rendered for the services, did the worker register for HST ... works independently within a define framework; does not have anyone overseeing his/her activities; works without detailed ... Hires or Subcontracts ... LLP; a full service business law firm located in Toronto, Ontario, Canada.
Workers and Independent Operators - WSIB
www.wsib.on.ca/WSIBPortal/faces/WSIBManualPage?cGUID=12-02-01...

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Jan 2, 2013 - Persons employed under a contract of service are workers. ... The questionnaires apply to persons, usually contractors and subcontractors, who are unsure of their own status, or whose ... The WSIB will continue to use this questionnaire to make status decisions in the ... Must render services personally.
Do you know if your worker is an employee or a self-employed - CFIB
www.cfib-fcei.ca/.../3057-do-you-know-if-your-worker-is-an-employee-or-a-self-em...

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When dealing with the Canada Revenue Agency (CRA), you need to find out ... Do you have priority on the worker's time when his/her schedule is irregular? ... Subcontracting work or hiring assistants - This factor can help determine a ... the business aspects of services rendered and that a business relationship likely exists.6661.html