Contract Work Compass
The Gig Economy. Contractor Success. The Fourth Industrial Revolution. Artificial Intelligence. Machine Learning. There’s no doubt that the world of work is changing. And big change inspires important questions. At Raise, we believe every question is valid in the search for meaningful work. This blog post series answers the questions we’re hearing from candidates as they chart their courses in the new world of work.The Question:
If I would rather not be a contract employee; do I have the option of offering my skills through my own company on a freelance basis through Raise?The Directional Assistance:
In most cases, candidates who go through the interview process and are ultimately chosen for a Raise contract position are given the choice of taking on the assignment as a Raise contract employee or as an independent contractor. Thanks in part to the rise of the “gig” economy, a growing number of technical freelancers are choosing to offer their services to Raise as independent contractors. Making the choice between having a business–to–business relationship or an employee–to–business relationship with Raise requires some careful consideration. Here are some of the things you should consider if you are thinking about offering your services as an independent contractor:- You will be operating as your own registered business if you choose to provide your services as an independent contractor Raise.
- Rather than receiving a standard paycheque from Raise as our contract employees do, you will invoice Raise and payments to your company will be processed through our Accounts Payable department.
- It will be your responsibility to register for, collect, and remit taxes in accordance with provincial/state and federal government guidelines.
- If your work takes place in multiple provinces and/or states, it will be your responsibility to be aware of and ensure compliance with different regulations.
- Standard employment practices do not apply in a business-to-business relationship, which means:
- You will not receive a Record of Employment at the end of the contract period.
- You will not be entitled to maternity/paternity leave, or other benefit coverage through Employment Insurance.
- You will not be entitled to vacation pay or overtime or receive payment for statutory holidays.
- Certificate of incorporation
- Business Information Number
- Canada Revenue Agency Business Number (If you have registered your business for GST/HST, you’ll have been assigned this 9-digit number by the CRA)
- Federal Tax ID Number
- Proof of your GST/HST account
- Copies of any licenses or certificates required for carrying out your business
- Workplace Safety and Insurance Board (Ontario) Clearance Certificate (if you have registered)
- Proof of coverage and amount of business insurance
- Proof of your own benefits coverage (e.g. disability, health and dental, life, critical injury or similar benefits)
- If you have employees, proof of any benefits coverage purchased for them
- Proof of how you market your business to the public (e.g. business cards, website, social media accounts, paid advertising, sponsorships, industry group memberships, trade fair participation, etc.)
- Sample business invoices
- Evidence of corporate banking and bookkeeping
- Written contracts that clearly identify you/your business as an independent contractor and ideally:
- Are for a fixed term or based on completing a specific project vs being open-ended
- Outline the services to be performed or the project or product to be delivered
- Have an indemnification provision that requires you as the contractor to compensate the client for any losses related to any negligence or other factors
- Permits you as the contractor to provide services to other organizations
- Discretion you’ve had in determining how your services are provided and the order in which they were performed
- Latitude you’ve had in setting your own hours and schedule
- Instances when you’ve contracted other people to provide services to your client
- List of all equipment you supply to perform your services (including computer hardware and software, cellphone, specialty equipment)
- Details around any fee-for-service arrangements for tools you use to perform your work
- Details on office space you own or lease