Dates and location
Pricing
Hours
Dates and location
Pricing
Hours
Description
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 course 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: No updates or changes were made to the 2024 version of this course. If you completed the course in 2023, please be advised the 2024 course material has not changed. If you have any questions, please contact pdevents@cpaontario.ca.
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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 course is intended for practitioners working with individual and corporate clients, assisting them with corporate set-up and tax planning.
Prerequisite(s)
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
This is an online session. This course is available 24 hours a day, 7 days a week. Once registered, you can access the material at any time.
However, you will only have access to the course for 90 days after REGISTRATION.
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To access the course on your computer please visit our BlackBoard site, and log-in using the same login and password used for the Registration Portal.
Please allow up to 15 minutes after registration for the course to appear on your BlackBoard page.
Registration, cancellation, withdrawal and all other CPA Ontario PD policies can be found here.