Important Tax Information for Clinics
Please review the below information carefully
Skip To:
- What Fairly Doesn't Do
- Your Employment Relationship with Temps
- Classifying Temps as Independent Contractors
- Classifying Temps as Temporary Employees
- Invoicing and Records
- Summary
Fairly Staffing is a technology platform that connects dental clinics with qualified temporary professionals. We are not an employment agency and do not operate as a party to any employment agreement between a clinic and a temp.
Understanding your responsibilities as a clinic is essential for ensuring proper legal and tax compliance when hiring temporary dental staff.
Fairly Staffing does not provide legal or tax advice. Clinics are solely responsible for consulting their own legal, tax, and financial professionals to ensure compliance with all applicable laws and regulations when engaging temporary dental professionals.
What Fairly Staffing Doesn’t Do
To clarify the scope of our role, Fairly Staffing does not:
-
Assign or dispatch temps to shifts
-
Guarantee that a temp will book or attend a shift
-
Act as an employer or intermediary in your employment processes
-
Issue T4s, T4As, or any other tax document, or maintain tax records for temp payments
- We do generate invoices on behalf of the temp that can be accessed at any time by either party, but these invoices belong to the temp—not to Fairly Staffing
- Charge temporary dental professionals a fee for our services or to connect them with work—our platform is free for dental professionals to use—we are not an employment agency
All legal and tax responsibilities related to employment rest with your clinic.
Your Employment Relationship with Temps
When your clinic books a temp through Fairly Staffing, the temp is working for your office, not for Fairly Staffing. This means:
-
The employment relationship is between your clinic and the temp
-
You determine how to classify the temp: as an independent contractor or a temporary employee
Classifying Temps as Independent Contractors
Most clinics choose to engage temporary staff as independent contractors. In this arrangement:
-
You pay the temp directly, based on their invoice. In this situation, clinics pay the full amount of the invoice
-
We do not dictate what payment method you must use, this is completely up to you
- Payment methods include
- Fairly Payments
- e-Transfer
- Cheque
- Direct Deposit
- Any other payment method of your choice
- Payment methods include
Once a temp's shift is over, you must approve their hours and make payment: How do I approve hours and pay temps?
-
No taxes or deductions are withheld—the full invoice is paid to the temp
-
The temp is responsible for filing their own taxes
-
-
Your clinic does not issue a T4 slip
This is typically suitable for short-term engagements and when the clinic does not intend to place the temp on payroll.
Classifying Temps as Temporary Employees
Alternatively, if your office prefers to classify temps as temporary employees (even for a single shift):
- You are responsible for properly adding the temp to your payroll. This may include, but is not limited to, the following steps (please note, this is not legal or tax advice—be sure to consult the appropriate experts):
-
Requesting the temp’s Social Insurance Number and other relevant personal information
-
Making the appropriate payroll deductions and remittances
-
Issuing a T4 at tax time
-
Fairly Staffing does not handle or support payroll processing—this is entirely the clinic’s responsibility. Fairly Payments is simply a payment processing option to facilitate the transfer of funds from the clinic to the temp, similar to an e-Transfer. The payment amount will always match the temp’s invoice for each shift and cannot be adjusted.
Invoicing and Records
After each shift:
-
You’ll receive two invoices for that shift:
- Invoice A - the temp's fee, generated by us on behalf of the temp but owned by the temp
- Invoice B - our placement fee
- These invoices can be accessed via the platform at anytime
-
Payment arrangements are made between your clinic and the temp and are not dictated by Fairly Staffing
Please see this article for more information on invoices: Invoices Explained: Temp Fees and Platform Charges.
Please see this article for more information on how to access invoices: How do I access invoices?
Summary
-
You are responsible for determining how temps are classified and paid
-
Temps are not employed by Fairly Staffing
-
All tax reporting (e.g., T4s, T4As) must come from your clinic if applicable