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MR. STEAMER ![]() True Patriot ![]() Only in the GTA Joined: 03/March/2004 Location: Canada Status: Offline Points: 14549 |
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Hey have you put up a new topic lately...or are you one of the people that just add their two cents in.....I'd love to hear from you....got an idea for a new topic please post it.....hopefully it won't be something that will offend anyone..... Oh yeah...if it's just mindless dribble prepare to get slammed....and slammed hard.... Oh and another thing try to leave out the sex and keep it clean. One last thing......have fun.. Happy Posting |
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WESTDEVIL ![]() Newbie ![]() ![]() Joined: 24/February/2004 Location: Canada Status: Offline Points: 22 |
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I didn't really know where to post this question Mr. Steamer. I thought the general discussion place would be ideal but people haven't posted there lately and I need a quick answer from the Canadian guys. I am starting my Janitorial company and will be covering several areas including carpet cleaning. Several potential clients have asked me if I have my WCB number in order to hire my services but I am stuck right there with this issue. WCB says they will only give me a WCB number if I go incorporated. That if I start as a home-based business with employees they will not give me a WCB number.That if I were a sole proprietor performing the job I would be covered by the client's WCB. This is why this question is not directed for the One-show carpet cleaners as they are not required or better said they don't have to show up with one up front to their customers the reason being they'll be covered automatically by the hiring party's WCB. This is more directed to the guys who have employees (which I intend to have). So the question is: how in hell am I going to run my business as a home-based business with one or two employees and be able to demonstrate my client we are covered by WCB if WCB will not issue me a number ? The other day before I had the idea of my business an electrician came to my house to perform a job and he told me his business has been running as a home-based business for 10 years. It seems like a big company so I presume they have employees. How do they handle the WCB issue ? Will I have to go incorporated ? Thanks for help.
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Westdevil
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MR. STEAMER ![]() True Patriot ![]() Only in the GTA Joined: 03/March/2004 Location: Canada Status: Offline Points: 14549 |
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wow...confusing.....This is what I know.....as long as you have no employees..your cool...so the way to get around it..you have to get your two employees to open their own companies...I know it sounds crazy..but it frees you from paying any monies to the WCB. This is the first time I've ever heard of companies asking for WCB#...you can always open a private liability insurance for much less per year...If I where you I'd check the web site...that have a FAQ there...and there is a 1-800-number... hope that helped |
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doug ![]() King of the One Liners ![]() Just My opinion Joined: 31/January/2004 Status: Offline Points: 32711 |
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We usually have to give our cert. of clearance from WSIB when quoting any local government contracts and keep it in effect for the duration of the contract. I have it for employees anyway. One must be careful about the subcontractor route and what constitutes a sub contractor in various areas. I know here I don't think many people know just what a sub really is. But in the eyes of most I am probably wrong.Just my opinion
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WESTDEVIL ![]() Newbie ![]() ![]() Joined: 24/February/2004 Location: Canada Status: Offline Points: 22 |
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Thanks Mr. Steamer and Doug. I know it sounds confusing. According to Mr. Steamer's suggestion having my two employees open their own two companies is beneficial in the sense I will be paying them a flat rate, lets say $12 an hour, without any deductions like CCP, EI or Tax. That's ok. You don't have to deal with revenue and EI every month, the employee gets all his money and it is up to him to pay his taxes at the end of the year. It is a Business to business payment. That is what I'm going to do and I've found out many companies do it. That's one thing. But the moment I go into a client's company with these two guys let's suppose one of us suffers an accident inside the client's building. To better understand, before continuuing I took this from one of the WCB's PDF files and it says: "Definition of Proprietor: A proprietor for WCB purposes is an individual who owns and operates a business and does not employ any workers." Then it says " Hiring a proprietor: If you hire proprietors to perform work for you and they do not maintain their own WCB accounts, they are considered to be your workers and are covered through your account. This means you must pay premiums to cover the work they perform for your business. It also means that your experience record will reflect any injury claims they have while working with you." That is fine as long as I have no employees and I go and perform the job alone. But what happens to the other two guys ? Are they viewed as proprietors also ? If that were the case the client should pay all three persons individually the price of the job performed to consider them independant proprietors and it becomes a mess. Like in your cases are your companies incorporated or home-based businesses? Because the only way WCB covers you is having people as employees and not having their own business tradenames. So to summarize, ones most convenient way is to have these guys working with you, have their own tradenames, and it simplifies the relationship with them for tax purposes but on the other hand they will not be your employees and WCB will not cover them. WILL THEY BE COVERED INDIVIDUALLY BY THE CLIENT'S WCB AS THEY EACH ARE PROPRIETORS WITH NO WORKERS ? That's the big question. If anybody else has a solution for this problem your posts will be greatly appreciated. |
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Westdevil
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doug ![]() King of the One Liners ![]() Just My opinion Joined: 31/January/2004 Status: Offline Points: 32711 |
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You should be looking to findthe definition of a subcontractor. I have always had WSIB coverage, when I was sole propiertor and now I ams Incorporated. The contractor is responsible to see all subtrades have coverage. Because others compaines call their employees subcontractors does not make right. Just my opinion
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