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kellyraeside1-ya
Level 1

I want to add a chair renter to my hair salon. How do I set them up. I wont be paying them but I am obliged to pay their EI contributions?

I need to pay my chair renters EI contributions but I dont see their earning so I will be using the CRA approved calculation but its not clear to me how I set that up on my quickbooks to ensure its paid?
3 Comments 3
JamesM4
QuickBooks Team

I want to add a chair renter to my hair salon. How do I set them up. I wont be paying them but I am obliged to pay their EI contributions?

Hi there,

 

Welcome to the Community. It's great to learn you're expanding your business. I'll be happy to share more info about utilizing the the program to the fullest so you can achieve your QuickBooks goals. 

 

To make sure we're both on the same page, are you looking to add the chair renter as an employee or they will be considered as expenses? Feel free to reach back to me in the comments below. I look forward to hearing back from you. 

AndyPullMyHairOut
Level 1

I want to add a chair renter to my hair salon. How do I set them up. I wont be paying them but I am obliged to pay their EI contributions?

Yes you are now required to remit BOTH EI Employee and Employer Premiums.

 

I'm putting a link to my related rant titled: Special EI Regulation for Barbers and Hairdressers - for the Salon Operator

https://quickbooks.intuit.com/learn-support/en-ca/other-questions/special-ei-regulation-for-barbers-...

AndyPullMyHairOut
Level 1

I want to add a chair renter to my hair salon. How do I set them up. I wont be paying them but I am obliged to pay their EI contributions?

Did you ever figure out if QuickBooks allows a Salon Operator to setup and remit EI Premiums in accordance with CRA's Special EI Regulation for Barbers and Hairdresser?

Meaning where a Salon Operator rents chairs to Self-Employed barbers or hairdressers, will QuickBooks allow:

  • Calculations and remittance of Special EI Premiums (both Employee and Employer premiums) for self-employed barbers or hairdressers (chair renters) that are NOT employees (but are considered employees under the Insurable Earnings and Collection of Premiums Regulations only for the purposes of the special EI rule)
  • Generate a special T4 where Salon Operator remits both EI Premiums but does NOT provide any Gross Income to the self-employed barber or hairdresser. 

Thanks!

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