Tax Implications

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If you’re reviewing a termination package that includes a ‘retiring allowance,’ it might sound like a perk tied to retirement. That makes sense, right? Not really.

Despite the name, a retirement allowance in Canada has nothing to do with retirement. In most employment law cases, it simply means money paid to an employee upon or after termination of employment in recognition of long service. It’s a tax term, not a legal entitlement, and it often leads to confusion when planning severance packages or reporting to the CRA. Let’s break down what it is – and what it isn’t.Continue Reading Retiring Allowances – Don’t Be Fooled by the Name

When bringing people in to work with your business, the distinction between an “employee” and an “independent contractor” is not just an administrative detail; it carries significant legal implications, particularly in the realms of tax and employment law.

If a court, the Ministry of Labour, or the Canada Revenue Agency (CRA) finds a worker has been “mischaracterized” by being treated as an independent contractor when they are an employee, this can have serious and expensive implications. Continue Reading Navigating the Legal Distinction: Employee vs. Independent Contractor Relationships