Originally Published by The TaxLetter Vol. 26, No. 4, April 2008   www.adviceforinvestors.com

Personal Service Peril Billing your employer through a corporation?  Eileen Reppenhagen

It is always the same story. And it is not pretty. The conversation goes like this ... and this conversion happens every few months with some lost soul who thinks they can practice tax without any training. Just how hard can it be? Enough already! Here’s the story of one recent client I’ll call John, who is semi-retired but still works for his former employer but through a personal corporation . . . “I incorporated last year,” says John. “Now my corporation, of which my spouse owns 51%, invoices my employer for my time. I am not bothered about Employment Insurance this close to retirement. The benefits were non-existent, except for the company medical insurance for extended health and dental. They have kept me on the plan, and I just pay the premiums.” My first question is always this: Does your corporation have other employees besides you? The second is ... Signup for The TaxLetter and read Eileen's full article every month

Eileen Reppenhagen, CGA, ACG, Certified QuickBooks ProAdvisor writes and speaks about accounting and tax.  She is a regular contributor to Canadian MoneySaver, The TaxLetter and Intuit’s award winning online publications for accountants and QuickBooks ProAdvisors, ProConnection Newsletter and Advisor Advantage.   All articles are copyright protected.  Most articles are not available for re-print unless you obtain permission from third parties.  Please respect copyright. For more information or permission to re-print please contact  eileen@taxdetective.ca If you obtain permisison to re-print an article, include this tagline:   "Eileen Reppenhagen, CGA is a Certified QuickBooks ProAdvisor and speaks and writes about accounting and tax.  Contact her at www.taxdetective.ca".