Do you hire or outsource?

Do you hire or outsource?

Her clients probably are friends and friends of friends. Although I believe this is a method for starting with minimal financial risk and startup costs and overhead, let me be clear: I am not advocating tax evasion.

As a result, I was discussing the idea of starting a catering business with someone I had just met at a business seminar. She had actually started it before, but not officially, if you understand what I mean. If you don’t know her well, she probably got paid for her work but didn’t tell C.R.A.

As an addendum, you can always report your taxes at a later time (but make sure to consult a tax professional about your particular circumstance prior to carrying out any of the recommendations in this article).

We began discussing her target market and the types of customers she would be targeting. Her choice was businesses like banquet halls that rent out space to people and businesses for events.

Therefore, I will fast-forward in an effort to speed up my narrative. We began discussing her staffing requirements. She found it to be too much; as I would also do if I had no accounting experience and had never previously hired employees. The primary questions were whether she should hire permanent staff or hire contractors to provide temporary assistance as needed.

Time and cost are two things that entrepreneurs prioritize, but they are not the only ones. Since time is essentially money, we consider the financial cost. There are a lot of steps involved in hiring a full-time employee, and then there is the time-consuming and expensive task of keeping track of their records.

You can simply pay an independent contractor when you hire them, and they will take care of everything else. Hire independent contractors with caution because you must ensure that they are “independent.” I’m referring to the requirement that an independent contractor fulfill at least two of the following, as stated by C.R.A. own their own equipment, have control over their schedule, and face financial risk if the relationship breaks down. A temp agency is the other option; they provide temporary assistance and bill you for it.

“Temporary help agencies employ people to assign them to perform work on a temporary basis for clients of the agency,” reads the Ministry of Labor website. Even though the Ministry of Labor considers the temp agency to be the employer, you, as the contracting company, may be responsible for unpaid wages because the temp agency is responsible for any compensation or benefits.

The Workplace Safety and Insurance Act recognizes temp agencies as the sole employer, so W.S.I.B. premiums are only applied to temp agencies (Workplace Safety and Insurance Act, Part VII, Section 72). However, both the agency and the client (you) are jointly responsible for the health and safety of the temporary employee.

This means that client employers (you) who hire temp agency workers can keep their W.S.I.B. accident records clean even if something goes wrong on their property. In conclusion, outsourcing to a temp agency may be simpler, less time-consuming, and more cost-effective than hiring an independent contractor.