The dependent contractor issue is receiving much more scrutiny as of late with the legislative changes that are just around the corner in Alberta and Ontario. Significant changes will be implemented as soon as September 1, 2017 meaning there is no more time to avoid addressing this issue for any organization that relies on the contractor model to help make up its workforce. If you have independent contractors in your employ the time for procrastination is over.
For companies working with independent contractors who are PCSI Certified, the risk of being on the hook for substantial financial liabilities are significantly reduced. Over the last decade, the Canadian courts have created a massive potential severance liability for companies that utilize independent contractors by deeming many of these resources to be “dependent contractors” and therefore entitled to many of the same benefits owed to full-time employees, including severance upon the termination of a contract, legal fees associated with the severance process, and even legacy tax obligations incurred by your dependent contractors.
The unique PCSI Solution significantly reduces the risk of your contractors being deemed to be “dependent” on your organization and in turn distances your company from a host of severance, tax and legal obligations that would otherwise be associated with those contractors.
Our core mission revolves around maintaining the contractor model in Canada and striving to make our unique risk mitigation solution available to every contractor and organization across Canada.
Dispelling Common Misconceptions about Risk Mitigation Tactics
Unfortunately, there are several common misconceptions of how employers believe they are mitigating their risk in relation to the dependent contractor issue when in fact they are still very much at risk.
How is the PCSI Solution Different?
There are four primary distinctions between the PCSI Solution and some of the more familiar yet less reliable “risk mitigation tactics” that employers have used in the past:
- Current Case Law supports our protection offered to employers and independent contractors.
- We offer a unique partnership model to independent contractors that significantly mitigates financial risk for both contractors and employers.
- The PCSI Solution is CRA Compliant.
- The PCSI Solution was vetted over 18 months by former CRA Auditors, legal, tax accountants and HR Experts.