Are You Evading Tax Through Your Employment Agency?

Anyone that runs a business knows that thriftiness is one way to be smart with your finances and ensure that you have better profits. After all, nothing causes a drop in revenues quite like spending frequently and unnecessarily throughout the financial year. The more you can avoid unnecessary expenditures, the better your bottom line is.

However, there is a distinct line in the sand between avoiding frivolous expenses and violating financial law in Canada by avoiding payments when you are supposed to, such as with taxes. One way that this kind of tax evasion can take place—whether knowingly or not—is by not working with a legal recruitment agency.

Illegal Convenience

There’s the adage, of “Faster, better or cheaper. You can pick two.” This means that it is normally impossible or extremely difficult to find a solution to business problem that is faster and better and cheaper. One of these factors must suffer at the expense of the other two. With a legal recruitment agency, it’s the same thing, and usually in this case, “cheaper” is the factor that is sacrificed for high-quality, reliable workers provided through a recruitment agency that follows all proper legal channels in Canada.

But there are some recruitment agencies that look for the easy way out, not just for themselves, but for the clients they approach. They scam the system by claiming that they can provide hard-working staff that will produce quality results for as long as an employer needs, even forgoing the usual financial compensation such as overtime, or even taxes. Sound too good to be true? It is, because, in order to achieve this, these are not legal recruitment agencies, and by trying to save money through them, you’re breaking the law too.

Cash & No Tax Is Not Credible

One warning sign you should look at that strains the credibility of a recruitment agency being legal is if they operate on a strictly cash basis for their employees. This means that there’s no paper trail and zero financial accountability. You can’t even be sure they are actually paying the employees what they claim they are.

This moves even more strongly into the “too good to be true” category if they claim that one of the reasons their rates for providing you with recruiters is so good is because the usual financial factors such as paying for CRA or WSIB remittances is not an issue. This is simply not legal, and there is no loophole in the system that safely allows for this. If the agency then makes claims that not only can they circumvent the 20-hour workweek limit and have their employees work 60 hours or more without any additional overtime payments, they are exploiting their workers. If you accept these terms as a bargain, you are complicit in this illegal activity.

Make The Right Choice

The CRA is getting very aggressive about sound business practices, and proper tax compliance, so don’t tempt fate with them and your recruits! ALL PERSONNEL RECRUITMENT TEAM is about safe, secure, legal peace of mind when it comes to both our recruitment policies and treatment of our employees. If you don’t want to get caught up in a legal nightmare with employees that pay no tax, and your corporate spending not being legal, contact us on our website, or call us at (800) 895-8897! We provide safe, efficient, legal recruits.

Call us now 1-800-895-8897