I am Using Sub Contractors
A lot of businesses today are participating in the business practise of using sub contractors, often referred to as “sub trades” in the construction industry. Some companies use only sub contractors, and yet others mix them in with their business operations with regular employees. From the outside, they all look the same.
Sub contractors are used to fill many business needs. Whether it be fluctuating business needs of workers, the requirement of an applicant prior to hiring, tax planning, cash flow requirements, it doesn’t matter, as long as they and you work to the terms of their contract. In construction, there has always been the “seasonal” and “specialists as required” gap, that was filled with sub contractors.
Some businesses have made the mistake of using the same sub contractors over and over again and start developing arrangements, that may in fact affect the tax status of all parties involved. These arrangements include things like allowing sub contractors to participate in employee benefit plans. You should talk to your accountant and lawyer about this and other situations you can get into by using sub contractors. In most cases, sub contractors are obviously self employed by their business structure and business behaviour.
As a business using sub contractors, you should confirm with your general insurance broker how your sub contractors are dealt with, in terms of liability exposures and those kinds of things. As well, the appropriate jurisdictions’ Work Place Safety and Insurance Boards, have appropriate questionnaires that should be completed to confirm their actual “status”, in the eyes of the appropriate agency.
Having said that, where do The Benefit Guys fit in on this topic? Well, we could help in a number of ways. You may have a sub contractor that comes in from a different country to work for a while. You could assist that sub contractor by making them aware of the availability of benefits for visitors to Canada.
Your sub contractors, if used regularly by you, may in fact ask about the availability of subcontractor benefit plans for their employees in their company. You can readily refer your sub contractors to The Benefit Guys, and we can look after their appropriate needs. Remember, we can help small sub contractors with as few as one employee, up to an endless number of employees, with benefit packages.
The Benefit Guys cannot give you all the situations involved with using sub contractors. You should always consult with your accountant and lawyer for your specific situation. We have a lot of experience in these areas, to help with solutions.
If there are any specific questions we can help you with, by all means feel comfortable completing the Client Data page and The Benefit Guys will be back in touch, with the answer, by your chosen method of communication.