Should I set up a service business?

My view is that there are two primary motivations:

  1. Money
    • As a contractor providing services which are in demand you can charge a premium rate
    • If the demand for your services offers continuity of work, you can realize significant income well above what you might have earned as a employee.
  2. Security
    • Many people have worked for years as employees, believing this loyalty would create job security, only to see their jobs disappear as the result of common business strategies such as: mergers, Acquisitions, Outsourcing, Off shoring, etc.
    • Unless you work for  some level of civil services the idea of a job for life is a myth and even then, it can be at risk.
    • As a contractor you can provide specialized services and through experience and training can position your expertise so that it appeals to the client community and ensures work continuity.
    • Your skills and experience are what ensure your security.

How should I structure my next consulting gig?

There are 5 ways to enter a relationship to provide your services.

The first two involves your engagement  either.

  • a full-time employee (FTE) or
  • as a temporary (Temp)

The province’s Employment Standards Act (ESA) clarifies employee rights and the obligations of the employer. Commonly an employer will also provide complementary detail in an Employment Agreement between yourself and the company.

The remaining three ways identify alternate ways for providing services as:

How to use the payroll deduction online calculator

Use the Payroll Deductions Online Calculator (PDOC) to calculate federal, provincial (except for Quebec), and territorial payroll deductions. It will confirm the deductions you include on your official statement of earnings. You assume the risks associated with using this calculator. The reliability of the calculations produced depends on the accuracy of the…

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