Padgett Business Services » employees

Employees vs. Independent Contractors

Karen — Sat, 20 Feb 2010 01:13:00 +0000

It’s crucial to know whether your workers are employees or independent contractors. Big dollars may be at stake in the form of Federal and provincial assessed penalties resulting from mis-classification. The validity of your company’s pension plan may also be at stake.

A periodic review of the status of your workers to see if they are properly classified is critical, but the process isn’t easy due to the complexity of the issue. The Canada Revenue Agency has published a guide called “Employee or Self-Employed?”, which contains an extensive analysis to determine whether there is an employer – employee relationship or a business relationship.

The four factors which are considered are:

Control of the worker;
Ownership of the tools;
Chance of profit/risk of loss an;
Integration

There is no litmus test for exactly how many factors must be satisfied, nor are the factors uniformly applied.

CRA: Changes to Taxable Benefits

Karen — Tue, 16 Jun 2009 16:46:29 +0000

Recently the CRA announced new changes with regards to employee taxable benefits. For a summary of these changes and to read the original news release, check out the link here.

Benefits of Outsourcing Payroll

Karen — Tue, 30 Sep 2008 16:57:30 +0000

Payroll can be a big hassle to even the most experienced small business owner. Stop to consider the penalties one faces for missing tax payment, and all of a sudden the “hassle” has turned into a nightmare! An enormous number of employers have been charged monetary penalties for payroll mistakes, with fines totaling tens of millions of dollars. For the majority of small business owners, payroll services offer an attractive alternative to internal processing.

Take a second to consider the following advantages that accompany outsourcing:

Expert knowledge of payroll and payroll systems.

The ability to accurately budget with fixed payroll costs.

The elimination of computer hardware costs and computer upgrades.

The ability to handle workload peaks, illness or unexpected changes in qualified staff.

The assurance that payroll records are accurate, reconciled and structured so that all audit requirements are met.

Padgett Business Services is proud to offer payroll processing through our affiliate Paytrak Payroll Services. We want to take care of your payroll hassle so you can focus your time on growing your business.

For more information, visit their PayTrak website at or if you are located in the Ottawa area call us at 613-599-4224 to find out more.