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Old 11-10-2011, 03:44 PM   #301
freedogger
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Quote:
Originally Posted by KTown View Post
I've consulted for one company now over 5 years. I've seen this company go from 250 people to 50 people and back to 200+ now. Yet they kept me over staff people during the down turn, so I am not sure it is in my best interest to move around for an extra $5.00 an hour and rebuild the relationships that I currently have with my existing contracts. I've hit 2800 hours this past year.
Consulting for one place for five years straight? Be careful that CRA doesn't re-classify you into a Personal Services Business:

"A business carried on by a corporation will generally be a PSB if the following two tests are met:
  • The individual performing the services (or someone related to the person) owns 10% or more of any class of shares of the corporation, and
  • Without the use of the corporation, the individual would reasonably be regarded as an employee of the person or partnership paying a fee to the corporation."
http://www.bdo.ca/library/publicatio...s/2004-03a.cfm

I'm assuming you invoice this company above and are not an employee. If not, disregard my comment. These rules are a pain for any consultant in Calgary from what I've seen (myself included).
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