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Posted by Hays Recruitment Expert on Monday, Apr 22, 2019
According to our recent survey, 83% of IT professionals nationally are aware of compliance requirements associated with contract roles; however, many are unsure of the key compliance areas. Whether you’re an established business person who has been in the market for years or brand new starting out, your clients are demanding a compliant contingent workforce. Here are Hays’ best practice recommendations in the Canadian IT market.
Your worker classification and the CRA
The Canada Revenue Agency will be looking to see if you’re from a legitimate business. The CRA determines whether you’re an independent contractor, based on the following criteria:
Unlike temporary workers, independent contractors have full control over their work. They have a significant investment in their business structure, with the potential for profit and loss. In contrast, temporary workers have specific instructions, are typically paid hourly, and receive a T4 at the end of the year. They’re also eligible for overtime, stat pay, among other benefits.
Should I ensure my operations?
There are a variety of insurances clients may look for when engaging with your operations. At Hays, we have seen many clients are call out specific insurance items as requirements for their contingent labour programs.
Below are four common types of insurance for your business.
1. Workers’ compensation insurance
What’s it for? Provides coverage for loss of earnings benefits and health care coverage in the event the worker suffers an injury at work. In Ontario it’s WSIB, in Alberta its AlbertaWorks, British Columbia it’s WorkSafeBC, every province has their own board, but they all have workers’ compensation.
Why should my corporation have this? Clients aren’t willing to risk onboarding someone who is not covered. Hays’ WSIB rate in Ontario this year is only 0.13%. So if you’re billing $80/hour and clocking 40 hours/ week, this is only $4.16/week!
2. Commercial general liability
What it’s for? Offers protection for your business against claims for bodily injury and property damage to third parties arising from your products and completed operations.
Why should my corporation have this? Clients request that you have and maintain this coverage for your business as you will not be protected under their policy as an independent contractor.
3. Errors and omissions liability
What it’s for? Provides coverage, beyond the scope of a general liability policy, against claims for your client’s financial loss due to an error or omission on your part or that of your employee.
Why should my corporation have this? To protect your corporation and client from loss, and be viewed by the CRA as a legitimate business.
4. Cyber liability (or cyber risk protection)
What it’s for? It’s designed to protect your business’s revenue and reputation against the specific cyber risks you could encounter, such as identity theft, data breaches and cyber-attacks.
Why should my corporation have this? Some databases could be compromised as a consequence of increasing connectivity and reliance on technology.
3 Ways hays can help
Hays are your experts in compliance. For over 18 years, we have been providing our expertise to thousands of IT professionals like you in becoming fully compliant. Here are the compliance services that Hays offers:
Here’s an infographic that summarizes the key points.
Don’t lose out on your next great gig because you’re not compliant. If you have any questions on becoming compliant as an Independent Contractor, please contact your local Hays office.