We will probably be looking for some full time help in our hair dressing saloon, however have never hired any one before. I was wondering if we can recruit any one on a temporary basis (hourly wage).
lets assume the hourly wage is $12 per hour. Other than the cost of per hour pay what other costs are associated with having a employee work for you. I understand the taxes are paid off the employee's pay cheque and EI as well (CPP might be exempted for someone making $12 per hour).
- What would be the total cost in addition to the base $12 per hour
- How much taxes do i pay for having this employee
- How much do i contribute to this employee's EI
- What are the other costs that i am looking at
- what would approx be a weekly payout from my pocket for this employee assuming he/she works a 40 hour week
I will really appreciate any and all advise as i want to be within the legal bounding for having someone work for me and have my costs streamlined at the same time.
Thanks in advance.
Location: God's own country
Posted on: 01-09-09 23:15:56
For hiring just one or two employee's and that too in a hair dressing saloon does not need you to put them on payroll.
You can hire them as contractors (perfectly legal) and then pay them the amount in total. It is up to your employee's to declare your salary and pay taxes. You will write off that amount as paid to contractors.
Anyways, in hair dressing business, your staff will keep on changing (as it is very competetive) and this method is the best.
You will have to get a form signed from your prospective empoyee;s that thay will be paid as independant contractors.
As a good will, you can give them extended health care benefits (ratio of payment to be decided by you) profit sharing etc... but again as per your descretion.
Hope this helps.
Peace by TK
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I am a Gents and not a Ladies.
Quote:
Originally posted by tamilkuravan
It is up to your employee's to declare your salary and pay taxes. You will write off that amount as paid to contractors.
Hope this helps.
Peace by TK
Thank You TK. This is really good information, I do have another question though, paying them out lump is fantastic, but lets say should i have to let the employee leave for any reasons like slow down etc, would they qualify to apply for EI, can contractors apply for such benefits like mat leave etc ? I was just curious as i don't know how long would there be a need (as i am trying to cover off absence of my sis-in-law by having this employee work for me during the period when she will be away ? Thanks again.
Location: God's own country
Posted on: 02-09-09 08:20:51
If you employ this person as a contractor and pay him/her lump sum, then she will NOT be eligible for EI / mat leave.
OTOH, if you hire this person on payroll and the let this person go after your sis in law leaves and if she has put in enough hours, then she will be eligible for EI/Mat leave.
However, the govt. may start tracking you, if this seems fishy to them. It may also take a lot of effort to put this person on payroll (extra forms, payments, declaration, incorporation etc...)
Peace by TK
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I am a Gents and not a Ladies.
