Safety & HCM Post

Placement Agency, Not Client Company Must Pay Ontario Payroll Tax on Temps

The Court of Appeal upheld a lower court ruling that an employment agency supplying temps to federal agencies had to pay the Ontario Employer Health Tax. The temps were clearly employees and not independent contractors. The question: Who was their employer? They were under contract to the agency; but the federal government/client supervised their work. For a payroll tax like the EHT, the contractual relationship was more important than control over work, the lower court reasoned. It’s possible for the agency to be the employer for payroll purposes and the client to be the employer for labour relations and workplace safety purposes. The Court of Appeal found the ruling reasonable and refused to overturn it [Dare Human Resources Corporation v. Ontario (Revenue), 2019 ONCA 549 (CanLII), July 2, 2019].

Bongarde Editorial

Bongarde Editorial

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