Are you weighing the pros and cons of working as an employee versus an independent contractor in Canada? Let our accounting firm, specializing in independent contractors since 1984, guide you through the decision-making process. Book a FREE consultation with us and gain insights into the advantages and disadvantages of contracting, while safeguarding yourself from risks such as being assessed as a personal service business. Discover the best path for your career with expert advice tailored just for you.
Our employee vs Incorporation calculator has been designed to let you compare two job opportunities, one permanent and one on contract through a corp.
The calculator will show the total taxes and cost of benefits for each.
 If the contract is available either through a corporation or a sole proprietorship you can compare differences between taking a contract as a sole proprietor vs an incorporation on our Sole Proprietor vs. Incorporation Calculator.
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Incorporation Options |
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| *Hourly Rate: | |
| Annual Salary(paid from corp to owner) This is the amount of money you will take out of the company personally to pay for personal lifestyle expense that are above and beyond the expenses paid for by the corporation.Your goal is to keep this amount as low as possible. If you aim for between $40,000 – $45,000 this will keep your personal taxes in the lowest tax bracket. |
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Employment Options |
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| Annual Salary: | |
| Vacation days | |
| Sick Days: | |
| Statutory Holidays: | |
| Benefits: | |
| Contract Income | |
| Automobile | |
| Depreciation | |
| Rent/Home Office | |
| Advertising | |
| Business Promotion | |
| Travel | |
| Consulting Fees | |
| Sub-Contracting | |
| Accounting Fees | |
| Computer Supplies | |
| Employee Benefits | |
| Office Supplies | |
| Telephone | |
| Education and Seminars | |
| Professional Fees | |
| Books and Periodicals | |
| Insurance | |
| Wages | |
| Bank Charges | |
| General Expenses | |
| Interest | |
| Repairs and Maintanence |
*If you charge below $60 CAD/hour, you are subject to ESA (Employment Standards Act, 2000) and most agencies will on hire you as a part-time employee and not as a contractor.
If you want to know more about the benefits, don’t forget to book a FREE no obligation consultation with us.
We use cloud accounting software and intuitive digital resources to streamline small business accounting and bookkeeping. Our processes are simple and easy to follow.
Filing your personal taxes with CPA4IT is quick and easy. Whether you are an employee or self employed we have you covered with our customized personal tax services.
Our 3 step approach to growing your business starts with the basics, getting the numbers right. Before you can set a plan for where you want to go, you must know where you are today.
Incorporating your first business may feel overwhelming. But, with our process the hardest part is choosing a name. Our experienced advisors will guide you through the process.
Audits can be very stressfull and time consuming for everyone involved. Get the peace of mind oyu need with our audit representation protection.
PSB risk is the greatest risk facing the independent contracting market. A personal services business will endure hefty tax expenses, are you at risk?
Industry benchmarking is an important tool to help small business determine their overall levels of efficiency. See how you compare to industry averages.
Grow the value of your business by drawing on our 30 years of experience. Our accountability advisors can help you develop your plan for growth.
A great small business tax accountant does more than just measure value, they create it. At CPA4IT our goal is to save you substantially more than it costs you for our services. Over the last 30 years we have developed tax strategies designed to help you keep more of your hard earned money. If you would like to learn how we can help you pay less tax, simply download our FREE Guide to Pay Less Tax.
A great small business tax accountant does more than just measure value, they create it. At CPA4IT our goal is to save you substantially more than it costs you for our services. Over the last 30 years we have developed tax strategies designed to help you keep more of your hard earned money. If you would like to learn how we can help you pay less tax, simply download our FREE Guide to Pay Less Tax.