Nova Scotia Care Workers Challenge 'Non-Taxable' Wage Claims Amid CRA Audit
Company under CRA audit gave workers letters saying wages were 'non-taxable'
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Workers at Arden Professional Client Care in Nova Scotia are concerned after the company, under audit by the Canada Revenue Agency (CRA), issued letters claiming their wages were 'non-taxable.' Many employees believed this for years, impacting their tax obligations and financial security.
- 01Arden Professional Client Care is under audit by the Canada Revenue Agency (CRA).
- 02Employees were led to believe their wages were non-taxable, supported by letters from the company.
- 03The company has received over $184 million in public funding over eight years.
- 04Workers are classified as independent contractors and were not issued tax slips.
- 05Legal advice is being considered by some workers as they navigate their tax obligations.
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Workers at Arden Professional Client Care, a Nova Scotia-based company contracted to care for vulnerable individuals, are facing uncertainty regarding their tax obligations after the company was audited by the Canada Revenue Agency (CRA). Many employees, including Steve Keddy, believed their wages were 'non-taxable' based on information provided during orientation and letters from the company. Over the past eight years, Arden has received more than $184 million in public funding, yet it classifies its workers as independent contractors and has not issued tax slips. Keddy shared a letter he received from Arden stating his hourly wage of $19.50 as a 'non-taxable wage,' which has been echoed by other employees. Ottawa labour lawyer Malini Vijaykumar noted that calling a wage 'non-taxable' is contradictory, as income in Canada is generally taxable. While some workers are considering seeking legal counsel, Keddy remains hopeful for a positive resolution to the situation, emphasizing the need for clarity and support for those affected.
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The situation could lead to unexpected tax liabilities for workers, affecting their financial stability and trust in the employer.
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