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.
------------- Westdevil
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