contract work rules
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- spiralstarez
This might vary places, but what are the general regulations if you work contract for someone?
For instance the reason I am asking is I am wondering in particular about vacation pay. Do they have to pay you vacation pay on contract? Here in BC it's 4%.
I'm thinking of making a counter offer on an opportunity but want to know my stuff first.
- JazX0
I've worked as a contractor before through a group that placed me at a company. I was given no holiday pay and just received off whatever major holidays there were. Although, the pay is much better and there are less strings, there is also a lack of medical benefits, at least here in USA
- horton0
vacation pay is for full time employees.
or at least that's how i remember it... been a long time since i was 'employed'.
- horton0
vacation pay is for full time employees.
or at least that's how i remember it... been a long time since i was 'employed'.
- JazX0
you can buy into bennies as a contractor, depends on what type of contracting, independent or represented
- horton0
and consider... is it really contract work, or are you a new employee on a trial period and they just don't want to pay you like an employee.
- JazX0
yep
- nosaj0
Here's the skinny:
1) No Vacatin Pay, no EI bennifits, no CPP.
2) If you make over $30,000 you need to remit 15%HST to the gov. You'll need to register as a Sole Proprietor and get an HST number. Bill 15% tax on every invoice you send them. Otherwise you will be stuck with a huge tax bill at the end of the year or screwed when you get audited.
3) set your personal income tax aside.
4) Write off everything you can. You car, part of where you live, Internet connectipn, Power etc...
Lot's of shops seam to hire contractors to fill a fulltime position. There are guidelines your client/boss legally should follow. These include if you are always on site, using their equiptment, taking consitant direction from them.
If you're goign to be a contractor charge way more then hte hourly rate you would be willing to accept as a fulltimer.
- spiralstarez0
Thanks for that. I'm not totally sure whether I'd be an employee or contract
He's looking for someone as a fulltime employee to work local, but he's over an hour away so I'm trying to negotiate working from home at a higher rate.
Need to make sure I got my ass covered.
- brundlefly0
also if 80% of your income comes from one place the gov (in canada anyway) will consider you an employee and tax you at that rate rather than the sweet 19% for a contractor.
You can try to say that you work on several of their clients to avoid this but it is a tough fight...
- spiralstarez0
Hmmm. This doesn't sounds as good as it could be then.
Is there any online info for contractors, or where can I find out all these details you've been giving me (in Canada)
- horton0
you should be looking up "self-empoyed" info on Canada Gov sites, not "contract".
but yeah brundlefly is correct, unless you got other freelance gigs going, you won't be considered self-employed.
but pickup a couple extra jobs on the side and welcome to the world of freelancing. just make sure to follow through with all the other advice nosaj posted.
- slappy0
when i was on contract i used a agency to sort out tax, insurance, super annuation etc. The company I worked for just paid the agency and the agaency paid me. Was like a regular job except I made 25% more than the fulltimers.
I fulltime now but theres alot to be said about company perks like gym membership,health cover, tranport allowance, discount shares, holiday pay and sick leave etc.