Are you an employee or a self-employed subcontractor cleaner? This seems to be the burning question in the maid service industry. We have noticed that some cleaning services in Linden Ridge and across Winnipeg are hiring house cleaners, giving them set routes and calling them subcontractors.
Is this right? Is it fair? What does Revenue Canada say? Does it even matter? Keep reading to learn more on this matter.
Why would a company choose to hire subcontractors?
It’s simple: If you hire subcontractors you do not:
- Pay their Employment Insurance Premiums
- Contribute to their Canada Pension Plan (they pay their full amount at tax time)
- Pay them 4% or more Holiday Pay
- Pay them General Holiday Pay for Stat Holidays
- Give them Pay in lieu of notice upon termination
- Give them time off for holidays
- Train them, or
- Manage them
Sounds like a sweet deal for the payer. However, it depends what kind of business you want to run.
If a company hires subcontractors they cannot set the standard of service, they cannot provide a consistent and uniform service and they cannot set or manage to an expectation.
We are so passionate about this because for us, it’s more than just profit. We want to be the best, we want to create systems that orchestrate ourselves to be BEST. And setting, training and managing to the expectation is how we prove to our customers that we ARE the best. That is why we only hire employees in our business. Yes, there is more cost involved but that’s an uncompromisable, fundamental piece of running an honest business.
You can’t have the best of both worlds
You cannot hire employees and pay them as subcontractors. That is illegal and there can be hefty fines imposed for doing it. If a worker and a payer enter a working relationship and upon mutual agreement decide that they will be called sub-contractors, but the payer wants to train them, manage them, tell them where to work and when to work, they are not subcontractors.
By definition, they are EMPLOYEES and as employees they are entitled to all the things above and mre under The Employment Standards Act, the Employment Insurance Act, The Canada Pension Plan and The Income Tax Act because in Canada you can call a worker whatever you want, but that does not change what they are. And what they are is determined by the facts.
What does it mean to be a self employed cleaner?
Being self-employed means that you are working independently, and are providing services directly to clients, without the structure of a larger company. You handle your own schedule and pricing. However, this also requires a good balance organization and customer service skills to establish a trusted client base.
Who decides and how?
It’s the Canada Revenue Agency that decides. If you are unsure whether you are an employee with entitlements, or if you are a self-employed subcontractor, you can apply for a ruling from Revenue Canada.
Where do I find reliable cleaning services in Linden Ridge?
If you want to make sure your home is safe for you and your family, partnering with a trusted cleaning company is an important step, so look no further than Signature Cleaning. From reliable and effective products to color-coded equipment that guarantees safety, we go above and beyond to make sure you receive premium-quality services that leave your home in optimal condition and you completely satisfied. We’re available across the Fort Garry area and beyond. Give us a call today and enjoy all the benefits of working with an honest and reliable crew!
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