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> And, yeah, no benefits isn't great. But I have also found that paying out of pocket for dental, etc. is better than buying a plan for myself. The idea is yo

by ska 4y ago

> And, yeah, no benefits isn't great. But I have also found that paying out of pocket for dental, etc. is better than buying a plan for myself. The idea is you scale your rate to include enough for a benefits package. Or they use a POE/EOR service, that's possible in Canada I think. Either way, incorporation still has some advantages, one being that you time shift your pay as needed. It can make it easier to subcontract people too. And it's easy, and only costs a few hundred dollars.

cmrdporcupine 4y ago
CRA will screw you if you incorporate and only have one client. My employer is using Deel, paying me as sole proprietor, and that's fine. Deel can also act as an EOR and I could be "full time", and that could offer benefits. But it feels like a bit of a veneer overtop over what feels like contracting anyways, and it would mean less $$ in my pocket. It doesn't make a lot of sense. Especially now that pharmaceuticals in Ontario are free for kids whose parents don't have a plan. Also, it seems that telling my dentist and physiotherapist that I don't have a plan seems to make them behave more responsibly, on the whole. If I end up at some point landing more clients and I end up being more consultant than single-client contractor, then I will incorporate.
- ska 4y ago
  As I understand it, it's not really about the 1 client, so much as about demonstrating you aren't really an employee-employer relationship masquerading as something else. It sounds like that's what you actually are, so in that case you shouldn't be incorporating. If you change contracts often enough it might make more sense. FWIW an EOR/POE is more about the convenience for the employer, not you - they don't have to establish a local business presence, register a bunch of tax accounts, etc. You can end up technically employed by the EOR with access to a decent benefits plan etc., and paid directly by payroll. At least that's how it works in some jurisdictions, as you note. It's different all over, but can make a huge difference in somewhere with crappy medical coverage, or other benefits you want to keep consistent.

by ska 4y ago

cmrdporcupine 4y ago

CRA will screw you if you incorporate and only have one client. My employer is using Deel, paying me as sole proprietor, and that's fine. Deel can also act as an EOR and I could be "full time", and that could offer benefits. But it feels like a bit of a veneer overtop over what feels like contracting anyways, and it would mean less $$ in my pocket. It doesn't make a lot of sense. Especially now that pharmaceuticals in Ontario are free for kids whose parents don't have a plan. Also, it seems that telling my dentist and physiotherapist that I don't have a plan seems to make them behave more responsibly, on the whole. If I end up at some point landing more clients and I end up being more consultant than single-client contractor, then I will incorporate.

ska 4y ago
As I understand it, it's not really about the 1 client, so much as about demonstrating you aren't really an employee-employer relationship masquerading as something else. It sounds like that's what you actually are, so in that case you shouldn't be incorporating. If you change contracts often enough it might make more sense. FWIW an EOR/POE is more about the convenience for the employer, not you - they don't have to establish a local business presence, register a bunch of tax accounts, etc. You can end up technically employed by the EOR with access to a decent benefits plan etc., and paid directly by payroll. At least that's how it works in some jurisdictions, as you note. It's different all over, but can make a huge difference in somewhere with crappy medical coverage, or other benefits you want to keep consistent.