Are building managers self-employed or employees?

TangoWhiskey

Frequent Forum Member
Registered
Hi, I have been careful to try and keep the building managers as self-employed for CRA purposes to avoid all the payroll issues. That means no written contract; they pay themselves out of building revenues deposited from their own rent collection efforts; the building pays for its own phone they are allowed to use; they pay full rent and receive the amount separately. The building super gets paid similarly as bldg manager.

Am I doing this correctly or what else do I need to do to ensure that building managers and supers are viewed as self-employed rather than my employee? I'm wondering about the building phone for example as this would appear to be like having a regular office job that has a desk and phone come with it.
thanks
 

Thomas Beyer

Senior Forum Member
REIN Member
If CRA audits you you will get fined and this practice dis-allowed.

A "consultant" needs multiple business she/he bills, and is she/he always bills the same amount every month to one firm who clearly tells them what to do then that is an employee.
 

Alvaro Sanchez

Ottawa-Gatineau Investor
Registered
You must have a contract agreement in place. Also ask them to register a business name (sole proprietor) so they can receive cheques and invoice you using business name. They must pay their own bills (phone, etc.). You must clearly demonstrate that they are a separate entity.
 

Thomas Beyer

Senior Forum Member
REIN Member
... You must clearly demonstrate that they are a separate entity.

Exactly.

As such often the easiest is to give them discounted rent. So instead of paying $1000/month they pay $200 and $800 is for a certain set of services. Ensure a lease is in place that actually states $1000 so if you have to terminate them they know what the lease payment is. Then just collect $200 and no one's the wiser.
 
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