Think about it.
How valuable is your contingent workforce to your organization?
PCSI Mitigates Your Risk of the Following Happening to Your Organization:
Being charged with a massive severance liability upon ending a relationship with a contractor who takes you to employment court and is deemed as dependent on your organization.
Should your contractor be reclassified as a PSB by the CRA they are exposed to tremendous financial risk upon assessment. That contractor can take your organization to court claiming they are dependent seeking that you cover their resulting tax bill and related penalties.
Visibility of you (the end employer) as a source of PSBs for Worksafe BC, and Workers’ Compensation Boards in Alberta, Saskatchewan and Ontario.
Being found guilty of misclassifying employees as independent contractors upon workplace inspection or a claim being filed against you by a contractor.
Your dependent contractors unionizing in Alberta.
Remaining Status Quo is not
Mitigating Your Risk
Unfortunately, there are several common misconceptions of how employers believe they are mitigating their risk in relation to the employee misclassification/dependent contractor issue when in fact they are still very much at risk.
Many employers think they are mitigating their risk if they:
- Engage their contractors through an intermediary/staffing agency.
- Simply terminate their contractors after a 2-year period.
- Apply restrictions on their contractors that distinguish them from their full-time employees.
- Use a “Formal Contract”, even one provided by CRA.
At PCSI we commonly compare these risk tactics that have become the “status quo” to rolling the dice, flipping a coin or even crossing your fingers. None of these tactics are an effective risk mitigation strategy. Especially when it comes to business.
Ready to learn about the PCSI Solution?