Dates and location
Pricing
Hours
Dates and location
Pricing
Hours
Description
Overview
This course focuses on the tax consequences of classifying a worker as an employee versus independent contractor. It covers the CRA test and the tax impact from both a corporate and individual perspective, the taxation of personal service business income and specific investment business income. The course introduces other legal and operational implications of the employee v. contractor classification, beyond the Income Tax Act, to enable practitioners to flag these risks.
This half-day seminar focuses on the implications of classifying workers as employees or independent contractors
The course primarily addresses the tax consequences relating to the employee vs. contractor classification, including applicable CRA guidelines, tax rates, and risk analysis. It covers the taxation of unincorporated contractors, incorporated contractors and employee from both the corporate and individual perspective, including personal service business (PSB) income and specific investment business income
Case studies will be used to engage participants in the practical considerations involved in classification, and in calculating and applying tax planning principles. Group discussion and work on the case studies will enable participants to evaluate the risks, advantages and disadvantages of hiring employees versus contractors
The course also introduces the broader implications of workplace classification, to ensure practitioners understand legal and operational impacts that go beyond tax. Practical examples and case discussions will be used to identify potential implications and spot situations when further advice should be obtained. Emerging issues, including "gig" workers and ESG considerations, will also be addressed.
Topics Include:
|
Topic |
Description |
|
Module 1: Overview of Concepts and CRA Classification Test |
Case study: Applying the CRA control test |
|
Module 2: Tax Implications and Tax Treatment |
Case Study: Tax assessment involving personal service business income |
|
Module 3: Implications Beyond the Income Tax, Including Employment Liability, Viscous Liability and Emerging Issues Relating to Gig Workers and ESG |
Group discussion: Identifying employment-related risks
|
|
Module 4: Practical Advice and Takeaways – How Worker Classification Arises in Practice and How CPA’s can Best Respond |
Group discussion: Practical considerations and questions that arise when decision making |
NOTE: This course description has been revised and reflects updates for 2023. If you have any questions, please contact pdevents@cpaontario.ca
Key Takeaways
By the end of this course, participants will be able to:
- Describe the CRA test for determining whether an individual is an employee vs. independent contractor
- Explain the tax implications of being an incorporated contractor, unincorporated contractor, or employee
- Describe the consequences of failing to properly classify a worker as employee vs. contractor, including penalties levied under the Income Tax Act
- Assess the tax rates that apply to unincorporated contractors, incorporated contractors and employee from both the corporate and individual perspective, including personal service business (PSB) income and specific investment business income
- Weigh the tax risks, advantages and disadvantages of classification as employee vs. contractor
- Recognize the legal and operational impact of worker classification beyond tax
Who Will Benefit
This seminar is intended for practitioners working with individual and corporate clients, assisting them with corporate set-up and tax planning.
Prerequisite Knowledge
Ideally practitioners would have at least one year of experience working in corporate and personal tax. A working knowledge of common personal and corporate tax matters is assumed.
How to Access the Course
Ideally, participants would have paper and a calculator available to work through examples as a group or computer with Microsoft Excel.
This CPA Ontario course is a live webinar. You must attend the live course to receive verifiable CPD hours. We recommend you join five minutes prior to the scheduled starting time. To get the full experience of this interactive course, use a computer with video and microphone capabilities.
Electronic material can be accessed one week prior to the course at https://pdlms.cpaontario.ca and should be downloaded in advance.
Registration, cancellation, withdrawal and all other CPA Ontario PD policies can be found here.
Speaker(s)
Alex Garber, CPA, CA, MTax has been in public practice since 2004, focusing primarily on income taxation for Canadian owner-managed businesses and their shareholders. Alex also teaches at York University, at the CPA Canada In-Depth Tax Course and at the PEP program for aspiring CPA students. Alex started his career at Deloitte and he's currently working at Fuller Landau LLP in Toronto.