Are you a PSB (Personal Services Business) Risk?

Job Works can help you minimize the risks of being a PSB!

Are you an employee and would like to transition into a subcontractor?

Job Works can help you make that transition

Are you a company that wants to hire subcontractors but wants to make sure you do it legally?

Job Works can help you hire subcontractors for your business in a simple and efficient manner that is completely legal. 

Job Works Inc. is a team of experienced professionals including accountants and tax lawyers who want to see people succeed in life. Job Works Inc. works directly with KD Professional Services Corp. accounting firm and Squire Law Firm a legal firm specializing in tax.

What we do: 

Job Works Inc. is an organization which specializes in providing professional contracting services, a process that will legally transition an employee to a subcontractor (or business owner) for the purpose of minimizing the risks of being declared a Personal Services Business (PSB). This unique structure also offers subcontractors the benefit of reducing taxes and increasing take home pay.  

Your corporation will be declared as a Personal Services Business if you provide services on behalf of your corporation to another company and you would reasonably be considered an employee or officer of the company to which you provide your services but for the existence of your corporation. But if your corporation has more than five full-time employees or provides services to an associated corporation, you will generally not be considered a personal services business. 

Personal Services Business (PSB) Legislation 

There has always been legislation in the Income Tax Act that covers what is called a PSB. Essentially the legislation imposes extremely negative tax consequences on the “contractor” such as a higher than normal income tax rate (39%), and denial of all expenses claimed by the contractor if the CRA determines that the contractor is actually an employee.

Why do you need to minimize the PSB risk?

Once you are declared a PSB by the CRA, you will lose a number of tax advantages.

· You will not eligible to claim the Small Business Deduction.

· You will not be eligible to claim many standard business deductions

· You may owe the CRA tax penalties from previous claims of disallowed business deductions and for back payroll taxes (CPP, EI).

· You will now pay much higher tax because of the recent tax rate increase to personal services businesses.

Using Job Works will give some protection against the CRA and the negative consequences of being a PSB. 

Talk to us today and learn more!

Check out the services tab above or click "Find Out More" below to get more info and pricing!