I am Using Contract Workers
A lot of businesses today are participating in the employment practise of using contract workers. Some companies use only contract workers, and yet others mix them in with their business operations with regular employees. From the outside, they all look the same.
Contract workers are used to fill many business needs. Whether it be fluctuating business needs of workers, the requirement of an applicant prior to hiring, tax planning, cash flow requirements, it doesn’t matter, as long as they and you work to the terms of their contract.
Some businesses have made the mistake of changing an employees’ status to “contract worker” and yet maintain them on the company benefit plan. You should talk to your accountant and lawyer about this and other situations you can get into by using contract workers. In most cases, contract workers are self employed by declaration, and any apparent “employee/employer” relationship has a lot of potential risks with government agencies and insurance companies.
As a business using contract workers, you should confirm with your general insurance broker how your contract workers are dealt with in liability exposures and those kinds of things. As well, the appropriate jurisdictions’ Work Place Safety and Insurance Boards, have appropriate questionnaires that should be completed to confirm their actual “status”, in the eyes of the appropriate agency.
Having said that, where do The Benefit Guys fit in on this topic. Well, we could help in a number of ways. You may have a contract worker that comes in from a different country to work for a while. You could assist that contract worker by making them aware of the availability of benefits for visitors to Canada. As well, some of your resident contract workers may be required to travel to different jurisdictions and having the proper Travel Insurance in place will save future potential grief.
Your contract worker should also have available to them, life insurance, disability insurance, and health and dental plans. They will wonder about the availability of such products and their costs. You can readily refer your contract workers to The Benefit Guys, and we can look after their appropriate needs.
As a Principal, you may in fact want to provide those benefits to a contract worker, yet not jeopardise their status of “self employed”. If you, as a Principal, are aware of individual benefits available to your contract worker, and also aware of the costs, you may in fact, factor in those costs, with the contract you have with your worker.
The Benefit Guys cannot give you all the situations involved with using contract workers. You should always consult with your accountant and lawyer for your specific situation. We have a lot of experience in these areas, to help with solutions.
If there are any specific questions we can help you with, by all means feel comfortable completing the Client Data page and The Benefit Guys will be back in touch, with the answer, by your chosen method of communication.