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Page 1: Jobworks Client Package - nbbn.ca › jml › nb... › kustom...Client_Package.pdf · group plan benefits (employer portion) 150.00 150.00 150.00 $ 50,540.00 $ 75,810.00 $ 101,080.00

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Page 2: Jobworks Client Package - nbbn.ca › jml › nb... › kustom...Client_Package.pdf · group plan benefits (employer portion) 150.00 150.00 150.00 $ 50,540.00 $ 75,810.00 $ 101,080.00

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THE JOB WORKS CLIENT PACKAGE: 1. The Job Works Inc. Corporate Overview

2. An Introduction to Job Works

3. Employee to Subcontractor Structure

4. Costs and Services for Clients

5. Sample Client’s Savings

6. Start-up Process

7. Frequently Asked Questions

8. Sample Letter to Employees

9. Client Data Collection

Page 3: Jobworks Client Package - nbbn.ca › jml › nb... › kustom...Client_Package.pdf · group plan benefits (employer portion) 150.00 150.00 150.00 $ 50,540.00 $ 75,810.00 $ 101,080.00

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JOB WORKS INC. is a team of experienced professionals including accountants and tax lawyers who want to provide business owners the opportunity to increase their profits and improve their core business. Job Works Inc. works directly with Kustom Design Professional Services Corp., an accounting firm and Squire Law Firm, a legal firm specializing in tax. JOB WORKS INC. offers a unique compensation method that will legally transition an employee to a Subcontractor for the purpose of reducing taxes and increasing take home pay. Through this method, our clients (employers) are provided the opportunity to increase their net profits and save on employee related costs. �

PROFESSIONAL CONTRACT SERVICES: Within the guidelines of the Income Tax Act parties are allowed to engage in contract services through Job Works Inc., making the Client a Contract Provider and the Employee a Subcontractor and an owner and director of incorporation that provides Contract Services. EXAMPLES OF OUR CLIENTS: • Accounting and other Professional Firms • Construction Companies • Oil & Gas Companies • Engineering Firms • Technology Companies • Sales Forces • Transportation Companies • Architectural Companies CONCLUSION: Reliable and accountable contract services are provided to corporations and individuals. The net result is that companies significantly reduce employee and payroll related costs while providing their employees with a reduced tax burden and more benefit to their working relationship.

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Page 4: Jobworks Client Package - nbbn.ca › jml › nb... › kustom...Client_Package.pdf · group plan benefits (employer portion) 150.00 150.00 150.00 $ 50,540.00 $ 75,810.00 $ 101,080.00

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JOB WORKS EMPLOYMENT AGENCY Job Works offers organizations the opportunity to reduce employee and payroll related costs while providing the opportunity for employees to reduce their tax burden. These are referred to as Professional Contract Services and are administered within the guidelines of the Canada Revenue Agency (CRA). Job Works clients will include leaders in all industries such as engineering, information technology, sales, accounting, transportation, construction, oil and gas, and more. Parties involved: Client - Agrees to provide the opportunity for the employee/Subcontractor to perform the duties related to their areas of expertise for an agreed upon rate of compensation and for a specified period of time. Job Works Inc. (Payer) - Assumes the role of providing the employee/Subcontractor the opportunity to generate revenue through a contract with the employee/Subcontractor and the client. Employee / Subcontractor - Ceases to be an employee by definition and is now a Subcontractor to the client through Job Works. Advantages and Benefits to the Client:

• Save 10 to 25% on your Employee Costs • Reduce your Accounting Tasks by 15 to 50% • Eliminate CPP, EI, WCB Payments plus other payroll taxes • Longer Worker Retention • Improved Worker Satisfaction • More budget and time to focus efforts on building your core business

Advantages and Benefits to the Employee / Subcontractor:

• Pay Lower Taxes • Higher Expense Deductions • Utilization of Dividends • Income Splitting • Higher Take Home Pay • Professional Services Access • Utilizing shareholder loans

Increase your bottom line and your workers’ take-home pay!

Join us at Job Works now!

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Page 5: Jobworks Client Package - nbbn.ca › jml › nb... › kustom...Client_Package.pdf · group plan benefits (employer portion) 150.00 150.00 150.00 $ 50,540.00 $ 75,810.00 $ 101,080.00

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Page 6: Jobworks Client Package - nbbn.ca › jml › nb... › kustom...Client_Package.pdf · group plan benefits (employer portion) 150.00 150.00 150.00 $ 50,540.00 $ 75,810.00 $ 101,080.00

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What is the cost for clients? A rate starting at 6.5% of the total income paid to the Employee/Subcontractor will be charged to the client. Please note that the total income paid includes all compensation and benefits paid to the Employee / Subcontractor. Services Covered by Job Works

• Assistance with administration related to the transition of the employee to Subcontractor;

• Cost of Incorporation if Subcontractor makes $100,000 annually; • Administration and accounting related ONLY to Subcontractor’s compensation or

pay; • Consultation with tax specialists and strategic planners.

Services NOT covered by Job Works

• Client’s accounting costs not related to Subcontractor’s compensation/pay such as bookkeeping, general accounting, AR/AP;

• Client’s accounting costs related to payroll for employees not signed up with Job Works;

• Client’s corporate tax returns, year ends, GST and other government required documents.

• Cost of Incorporation if Subcontractor does not makes less than $100,000 annually. Notes:

• The minimum annual income of an employee/subcontractor must be at least $45,000 to be eligible for the full benefits of Job Works. The 6.5% fee ($2,925 of a $45,000 income) is the minimum cost to cover Job Works accounting, tax, legal and administration expenses.

• For employees/subcontractors who have an annual income of less than $45,000, a higher rate than the minimum 6.5% may apply.

• For employees with multiple subcontractors, an average income of $45,000 is required for the 6.5% rate.

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Page 7: Jobworks Client Package - nbbn.ca › jml › nb... › kustom...Client_Package.pdf · group plan benefits (employer portion) 150.00 150.00 150.00 $ 50,540.00 $ 75,810.00 $ 101,080.00

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SAMPLE HOURLY EMPLOYEE

EMPLOYEE #1 EMPLOYEE #2 EMPLOYEE #3

HOURLY RATE $ 20.00 $ 30.00 $ 40.00 REGULAR HOURS (40HRSX50WEEKS)

2,000.00

2,000.00

2,000.00

OVERTIME HOURS (5HRS/WEEK) 250.00

250.00

250.00

WCB RATE PER $100 1.56

1.56

1.56

VACATION PAY 80.00

80.00

80.00

STAT HOLIDAYS 72.00

72.00

72.00

GROUP PLAN BENEFITS (EMPLOYER PORTION)

150.00

150.00

150.00

$ 50,540.00 $ 75,810.00 $ 101,080.00

BURDENS PAID BY THE EMPLOYER OVER AND ABOVE THE INCOME PAID TO THE EMPLOYEE

BURDENS

CPP $ 1,910.70 $ 1,910.70 $ 1,910.70

EI 729.30 729.30

729.30

WCB 788.42 1,182.64 1,576.85

VACATION PAY 1,600.00 2,400.00 3,200.00

STAT. HOLIDAY 1,440.00 2,160.00 2,880.00

OVERTIME 2,500.00 3,750.00 5,000.00

GROUP PLAN 1,800.00 1,800.00 1,800.00 TOTAL BURDENS PAID BY THE EMPLOYER $ 10,768.42 $ 13,932.64 $ 17,096.85

6% TO JOB WORKS 3,032.40 4,548.60 6,064.80

EMPLOYER SAVINGS 7,736.02 9,384.04 11,032.05 % OF BURDENS PAID BY THE EMPLOYER 21.31% 18.38% 16.91%

% TO JOB WORKS 6.5% 6.5% 6.5%

NET % OF SAVINGS 14.81% 11.88% 10.41%

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Page 8: Jobworks Client Package - nbbn.ca › jml › nb... › kustom...Client_Package.pdf · group plan benefits (employer portion) 150.00 150.00 150.00 $ 50,540.00 $ 75,810.00 $ 101,080.00

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1. Client approves process and completes Data Collection Sheet.

2. The Employee / Subcontractor complete the Subcontractor Data Collection Sheet and

return it to the Job Works Sales Representative or Administrator. 3. An appointment is booked between subcontractor and sales representative to discuss the

Job Works process and any other concerns that the subcontractor may want to clarify.

4. Once the Subcontractor Data Collection Sheet is processed, a new corporation is created according to the Subcontractor’s profile (if applicable).

5. When the Subcontractor’s New Incorporation is set-up, the Administrator will email the

Incorporation documents to the subcontractor. 6. Subcontractor opens TWO bank accounts at a Bank of choice

a. Corporate Chequing Account (for day to day operations) b. Corporate Savings Account (for Tax & GST savings)

7. Subcontractor advises Administrator that bank accounts are set-up and an appointment is

booked with Sales Rep for contract signing.

7. The Subcontractor brings a “void” cheque from his/her Corporate Chequing Account and account information for his/her Tax Savings Bank Account (this information is required for direct deposit).

8. At this meeting, multiple documents will be signed including contracts between:

a. Client and Job Works b. Subcontractor and Job Works c. Subcontractor / Subcontractor’s Corporation

9. Client & subcontractor is set-up according to the Job Works payment schedule and process.

10. Shortly after contracts are signed, the Client & Subcontractor receive a Job Works

Package including copies of the signed documents.

After the Job Works start-up process, the Subcontractor establishes a regular accounting and planning process with Kustom Design. Bookkeeping should be brought in monthly by the subcontractor. Regular planning appointments should also be booked by the subcontractor to stay on top of their financial requirements.

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Page 9: Jobworks Client Package - nbbn.ca › jml › nb... › kustom...Client_Package.pdf · group plan benefits (employer portion) 150.00 150.00 150.00 $ 50,540.00 $ 75,810.00 $ 101,080.00

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Is the Job Works Structure Legal? The Job Works structure complies with all of CRA’s rules and guidelines and is completely legal. By having the Client pay Job Works and Job Works pay the Subcontractor (Corporation of the former employee) the Subcontractor now has an independent arrangement with Job Works and no further employment relationship. What will change for me now that I am a Subcontractor? The main things that will change is that you will be responsible for maintaining a business. Job Works, along with its affiliate accountants (Kustom Design Professional Services Corp.) and tax lawyer (Squire Law Firm) will help you ensure you stay current on things annually. The main annual responsibilities are bookkeeping, GST, Corporate Year End and Annual Return. (See our Subcontractor annual process for further clarification) How much will it cost me to stay current with bookkeeping, GST, Corporate Year End and Annual Return? For many Corporations this annual cost is about $4,000 plus. However, because you are working with the Job Works structure, everything is paid for by Job Works except your bookkeeping. The Bookkeeping cost is normally about $100-$125 per month, but a special rate of $75 per month is applicable to all Job Works subcontractors. How much will I actually save by becoming a Subcontractor? You will be saving money in various ways. First the Corporate tax rates are as low as 14% in comparison to personal tax rates being as high as 39% in Alberta. Secondly, because you are a Subcontractor you are able to deduct expenses, and therefore are taxed on less income. Third, you are now able to split income with your spouse and family members, as well as distribute lower taxed income such as dividends avoiding both EI & CPP. The list goes on with ways you can now save taxes, putting much more money into your pocket at the end of the day. Please see our calculator for actual numbers. What about my benefits package? Benefits such as healthcare and insurance may no longer be provided to you in the way it was before. The great increase in take home pay far outweighs the benefits you were receiving before. Also, because the former Client is saving a lot of costs by using the Job Works structure, they may want to pass on some of those savings so that you could purchase your own benefits. At the end of the day you are always further ahead, and we can assist you in continuing on with benefits through your corporation.

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Page 10: Jobworks Client Package - nbbn.ca › jml › nb... › kustom...Client_Package.pdf · group plan benefits (employer portion) 150.00 150.00 150.00 $ 50,540.00 $ 75,810.00 $ 101,080.00

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How does my banking work after I become a Subcontractor? You will be opening 2 new bank accounts, 1 Corporate Chequing Account and 1 Corporate Savings Account. Job Works will transfer your earned money into your Chequing and Savings Accounts every pay day. 20% of your gross pay including GST will be transferred into your Corporate Savings Account to cover both Corporate Tax and GST. To receive the money personally you can either transfer the money from your Corporate Chequing Account to your Personal Account, or you can write yourself a cheque from the Corporation. What if I leave the Job Works program? If you decide to leave the Job Works program as a subcontractor you will be responsible for your corporation. You have the option to continue your accounting with Kustom Design or go elsewhere. Should you choose to continue with Kustom Design, all your credits will be applied against any future invoices. If you choose to go elsewhere (other than Kustom Design) to take care of your corporate accounting, no refunds of accounting fees paid by the client or subcontractor will be refunded as it is company policy not to give any cash refunds.

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Page 11: Jobworks Client Package - nbbn.ca › jml › nb... › kustom...Client_Package.pdf · group plan benefits (employer portion) 150.00 150.00 150.00 $ 50,540.00 $ 75,810.00 $ 101,080.00

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Dear Employees, In our effort to continuously develop innovative and beneficial workforce solutions, we are pleased to announce the beginning of a vital partnership with Job Works Inc., a group that provides growing organizations with innovative employee compensation strategies. Job Works Inc. is a Professional Contract Agency, which provides the opportunity to legally transition employees to business owners. This is a proven approach for employees to reduce their taxes and increase their take-home pay. Please refer to the attached information sheet for more details. Job Works Inc. will be conducting an employee information session on (date), (time) at the (venue). Please feel free to join us to learn more about this program. Job Works representatives and tax specialists will be present to assist you with any of your questions or concerns. Please complete the attached Data Collection Sheet if you are interested in continuing with this program. Completed sheets must be submitted to __________ prior to our Info Session with Job Works. You may direct your questions regarding the attached material to Job Works Inc. at (403) 539-1550. Thank you for your continued support and cooperation. We look forward to pursuing this great opportunity with you and Job Works in the near future. Regards, Name of Corporation Per: Name of President President

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Referred By: __________________ Date: _____________________

New Client Data Sheet: Yes / No Information Change: Yes / No Effective Date of Contract (Date must be 1st day or 15th day of the month): ___________________ COMPANY INFORMATION

COMPANY LEGAL NAME

TRADE NAME

ADDRESS

CITY / STATE / POSTAL CODE

MAILING ADDRESS (If Different)

PHONE NUMBER

GST #

WEBSITE

EMAIL

CONTACTS

NAME OF CONTACT PERSON (1)

POSITION

ARE YOU THE DECISION MAKER? _____ YES _____ NO

NAME OF CONTACT PERSON (2)

POSITION

ARE YOU THE DECISION MAKER? _____ YES _____ NO

PAYROLL INFORMATION

PLEASE SPECIFY YOUR COMPANY’S PAY STRUCTURE:

_____ Hourly _____ Salary

_____ Weekly _____ Bi-weekly _____ Semi-monthly _____ Monthly

_____ Others, Please specify _____________________

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