My Writing > TL Personal Service Peril

Billing your employer through a corporation?
12 Apr 2008

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


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 ...

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Eileen Reppenhagen, 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.  

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