Frequently Asked Questions: Hiring and Paying Respite Workers

1. Are home sharing providers considered employees?

No. Home sharing providers are considered independent contractors. This means they are not entitled to employment benefits under the BC Employment Standards Act (such as vacation pay or sick leave) and are responsible for their own taxes.

2. Do home sharing providers pay tax on their income?

In many cases, no. Payments to home sharing providers may be considered non-taxable under the Canada Revenue Agency’s (CRA) guidelines for “foster care” or care for individuals with disabilities. This depends on factors like whether the person lives in the provider’s home and the nature of the care relationship. Each situation must meet CRA’s criteria.

3. Can home sharing providers hire respite workers?

Yes. Home sharing providers can choose to hire respite workers to offer temporary support. However, providers must decide if the respite worker is being hired as an employee or an independent contractor.

4. How do I know if my respite worker is an employee or a contractor?

It depends on how the working relationship is set up. Consider:
– Who sets the schedule?
– Who provides the tools or space?
– Can the worker take on other clients?
– Do they submit invoices or timesheets?

If the provider controls most of the work details, the respite worker is likely an employee. If the worker sets their own hours, uses their own tools, and works independently, they may be a contractor.

5. What if I hire a respite worker as an employee?

If your respite worker is an employee, you are responsible for:
– Withholding and remitting income tax, CPP, and EI
– Providing a T4 slip each year
– Following BC Employment Standards (minimum wage, vacation pay, etc.)
– Possibly registering with WorkSafeBC

6. What if my respite worker is a contractor?

If the worker is a contractor:
– They are responsible for paying their own taxes
– They may need to register for GST/HST if earning over $30,000 a year
– You should request invoices and may require proof of WorkSafeBC coverage

7. Do respite workers pay tax on their income?

Yes. Respite workers—whether contractors or employees—are generally required to pay tax on the income they earn. The non-taxable exemption for home sharing providers does not apply to respite workers.

8. Do I need to register with WorkSafeBC if I hire a respite worker?

It depends.
If your respite worker is considered an employee, you are likely required to register as an employer with WorkSafeBC and provide coverage.

If the respite worker is a contractor, you are responsible for checking whether:
– They are already registered and have their own WorkSafeBC coverage, or
– You must register and pay premiums on their behalf.

WorkSafeBC uses a contractor check tool to help you determine if coverage is needed. If in doubt, contact WorkSafeBC directly.

9. Should I use a written contract with my respite worker?

Yes. A written agreement helps clarify the relationship and protect both parties. It should include details like duties, pay, work schedule, and whether the worker is an employee or contractor.

10. Where can I get help to set this up properly?

We recommend speaking with:
– A tax professional or accountant
– An employment lawyer familiar with BC and CRA rules
– WorkSafeBC if you are unsure about coverage