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SmallBiz Employee Benefits – Employee vs Independent Contractor

By April 29, 2020 No Comments

I was asked by a Client recently about whether or not they can offer employee benefits to an Independent Contractor.

I like to keep things as simple as possible and responded, “No.”

What I mean by “as simple as possible” is that I am not a tax expert but I do know that there is 1 simple reason why Independent Contractors should be precluded from having benefits:

  1. An Independent Contractor working for someone is in a “business relationship” and not an “employee-employer” relationship.

That should be the end of it but…there are Group Insurance companies that will offer employee benefits to Independent Contractors as long as they are in a separate Class and as long as they are not offered Disability benefits.

For some helpful advice on the advantages and disadvantages of hiring Independent Contractors, access and or speak to your Accountant and/or your Corporate Lawyer. There is also a great little video on Canadian HR Reporter’s website.

Located in Cambridge, ON Sharkey Group Insurance  provides independent Employee Benefits advice & counsel for Small Businesses across Ontario.