Expert accountants for
Independent Contractors
We specialize in incorporated contractors and freelancers across Canada and the USA.
Our services for contractors:
- Income tax return preparation and filing (T2 corporation tax return, sole proprietor/ self-employed)
- Financial statement preparation
- Client billing and invoicing
- Bookkeeping services for contractors
- Payroll management services
- Salary vs. dividend planning
- Accounts receivable and payable management
- CRA audits and correspondence support
- GST/HST return preparation and filing
- Business incorporation and registration
- Tax and financial advisory
Who is a contractor?
A contractor is a self-employed professional who provides services to clients or businesses under a contract. Unlike traditional employees, contractors manage their own business operations, including taxes, expenses, and securing contracts. They set their own rates and handle financial responsibilities independently.
What is an Incorporated Contractor?
An incorporated contractor runs their business through a corporation, which acts as a separate legal entity. In this setup, the corporation—not the individual—handles contracts, taxes, payroll, and other business obligations. This structure can offer financial and legal benefits by separating personal and business responsibilities.
Common Tax Challenges for Contractors
Independent contractors face unique tax challenges that can lead to costly mistakes. Here are some common issues and how we can help you avoid them:
Misclassification (Employee vs. Contractor)
Contractors may be mistakenly classified as employees by the CRA, leading to incorrect tax filings and penalties.
Overlooking GST/HST Registration and Filing
Contractors earning over $30,000 annually must register for GST/HST, but many fail to do so.
Incorrect Expense Deductions
Contractors often make the mistake of claiming personal expenses or misinterpreting what qualifies for deductions.
Poor Tax Planning and Payment
Contractors without automatic payroll deductions must set aside funds for taxes, which can lead to large year-end bills.
Record-Keeping Issues
Contractors often struggle with maintaining accurate records, which can complicate tax filings and audits.
| Service Type | Description | HST Return | Starting Price |
|---|---|---|---|
| PERSONAL TAX RETURN (T1) | |||
| International Student | For student : > One T2202 slip included > $5 for each slip extra | NA | $36 |
| General | For people who are: > Employees > Pensioners > $5 for each slip extra | NA | $48 |
| Self-employed | For people who do: > Uber eats > Doordash > Skip the dishes > Other delivery services | No | $96 |
| Self-employed | For people who do: > Uber drivers > Lyft drivers > Uride drivers | Yes | $132 |
| Self-employed | For people who do: > Nurses > Real estate agent > Financials provided by client | Yes | $168 |
| Sole proprietor | > Financials provided by client > Only tax return | Yes | $168 |
| CORPORATE TAX RETURN (T2) | |||
| T2 Corporate tax return - Business | For incorporated businesses : > Only tax return > Financials provided by client | Yes | $420 |
| T2 Corporate tax return - Contractor | For incorporated businesses : > Only tax return > Financials provided by client | Yes | $360 |
Software We Use
services we provide
Our firm specializes in providing the following services:
Accounting Services
Management of Payroll & Employee Benefit Plans
Fixed Assets Management
Short-term and long-term HR outsourcing for accounting and related activities
Why Choose bay Forward?
We are passionate about helping independent contractors and incorporated professionals succeed. Here’s why contractors trust us with their tax and accounting needs:
Timely and Professional Service
Accessible Support
Strategic Tax Planning
Salary vs. Dividend Expertise
Efficient Bookkeeping
Streamline Your Payroll Process: Partner with Our Expert Team Today!
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FAQs
Payroll services companies work with clients to ensure timely wages and legal obligations. They monitor employee attendance, manage deposit accounts, calculate taxes, review payroll correlations, integrate third-party benefits, distribute electronic documents, and ensure compliance with payroll laws.
Payroll firms provide a comprehensive package fee, including online access, payroll processing, tax filing, and direct deposit, based on factors like employee number, pay frequency, tax complexity, and residence state.
Organizations should consider five factors before selecting a payroll provider: payroll conversion timing, data conversion, data integration capabilities, payroll tax compliance management, and customer support.
Payroll software offers benefits like accurate payment processing, efficient payslip generation, enhanced security, time and money savings, reduced errors, and multiple-user access.
Alp Consulting, a leading Indian recruiting and staffing consultant, offers top-notch online payroll services, focusing on factors like user-friendliness, cost, reputation, integrations, and customer support.