While it is not PCSI’s desire or intent to exaggerate the risks associated with the traditional approach to contracting, there are a number of very salient points that independent contractors should be aware of before making the decision to maintain the status quo.
Unfortunately, many contractors don’t think the PSB issue is real because they themselves haven’t heard of anyone being assessed. Regardless of what contractors’ perception is, the issue is very real. Contractors in this situation don’t want anyone to know that they have been assessed because they fear being “black-balled” in the industry for being on CRA’s radar. Meaning if a potential employer discovered that a contractor had been assessed or audited in the past, they wouldn’t want to work with that contractor because the contractor is already on CRA’s radar. An organization would be afraid that the contractor would bring unnecessary attention from the CRA to them and the rest of their contractors.
Did you know?
Did you know that of all of the independent contractors in the Canadian marketplace today, more than 90% would face significant financial exposure if selected to go through a CRA audit? Are you confident you fall within the 10% of contractors in Canada who would pass a CRA audit?
Did you know that the consequences of being deemed a “Personal Services Business” can be financially devastating, with additional taxes and interest owing that could be in excess of $100,000?
Did you know that using a traditional third party agency that manages contractors does not create a safe harbour for contractors or their employers with whom they engage?
PCSI has designed a unique solution that is intended to address these specific concerns. Vetted diligently by former CRA and legal professionals, the PCSI partner model ultimately protects contractors from being reclassified as a Personal Services Business. When a contractor joins the PCSI Partnership they become PCSI Certified.
Advantages of being PCSI Certified
Dispelling Common Misconceptions about Risk Mitigation Tactics
Unfortunately, there are several common misconceptions of how contractors believe they are mitigating their risk in relation to the PSB issue when in fact they are still very much at risk.