Incorporated Contractor Accountant in Toronto and the GTA
Gondaliya CPA is an incorporated contractor accountant in Toronto for IT and finance contractors with an Ontario corporation. We file the T2, keep the books, run payroll, file GST/HST and plan your tax, which includes reviewing PSB risk. Ontario taxes small business income at a combined 11.2% from July 1, 2026, and PSB income at 44.5%.
Who do we work with in Toronto and the GTA?
We work with IT and finance professionals who bill through their own Ontario corporation. On the IT side, that means developers, DevOps and cloud engineers, data specialists, cybersecurity consultants, QA testers, business analysts and project managers. On the finance side, it means FP&A analysts, accountants, controllers, and risk, audit and compliance specialists.
Many of these contractors work for banks, insurers, government and large enterprises through a staffing agency. Contracts are often set at 35, 37.5 or 40 hours a week, and they renew in stages. The work is steady, but the tax setup needs care every year.
If you work in technology, my page for an accountant for IT contractors covers your setup in more detail. If you work in finance, my page for an accountant for finance contractors does the same.
Our office is at 55 Queen St E, Suite 1205, in downtown Toronto, close to the financial district. We work with incorporated contractors across the GTA, including:
- Downtown Toronto and the financial district
- North York, Etobicoke and Scarborough
- Mississauga and Brampton
- Markham, Vaughan and Richmond Hill
- Oakville
You can meet us in person at the office or online. Our hours are 9AM to 8:30PM, Monday to Sunday, so you can book a time outside your contract hours.
What does an incorporated contractor accountant in Toronto handle each year?
An Ontario contractor corporation has the same yearly filings as any other small corporation. It also carries one extra layer: PSB risk. Here is what you need each year and what we handle for each.
| What you need each year | Why it matters | What we handle |
|---|---|---|
| T2 corporate tax return | Your corporation files a T2 every year, even in a quiet year. It is where the small business deduction is claimed, or not. | We prepare and file the T2 and the year-end financial statements behind it. |
| Bookkeeping | Every number on your T2 and GST/HST returns comes from the books. CRA usually asks for them in a review. | We record income and expenses, reconcile the bank account and keep the records organized for year-end. |
| Payroll for salary | Salary paid to you is deductible to the corporation. It stays deductible even if CRA treats the corporation as a PSB. | We set up payroll, handle the remittances and issue your T4 slip. |
| GST/HST filings | Once registered, your corporation charges GST/HST on its invoices and must report and remit it on time. | We prepare and file your GST/HST returns and match them to the books. |
| Tax planning | The salary and dividend mix, the income you keep in the corporation and your PSB indicators all change your tax bill. | We plan your salary and dividend mix, and we review your contract and working facts as part of tax planning. |
| CRA support | CRA can send a letter, a questionnaire or a review request at any time. | We act as your corporation’s authorized representative, respond to requests, organize documents and communicate with the auditor. |
We work on a fixed flat-fee model. We also work with incorporated businesses only. If you are still a sole proprietor and plan to incorporate, we can help with the incorporation first.
How does PSB risk show up for Toronto contractors?
A personal services business, or PSB, is defined in section 125(7) of the Income Tax Act. It applies when the person doing the work, called the incorporated employee, or someone related to them, owns 10% or more of any class of the corporation’s shares, directly or indirectly. It also requires that the incorporated employee would reasonably be regarded as an officer or employee of the client if the corporation did not exist. I explain the full rule on my page about personal services business risk.
There are two exceptions. The first is a corporation that employs more than five full-time employees in the business throughout the year. That means at least six full-time employees, all year, and whether owners or family members count depends on their real roles, so it needs review. The second is income received from an associated corporation. For a one-person contractor corporation, neither one usually applies.
The agency and the end client
Many Toronto contracts have three parties: your corporation, a staffing agency and the end client. CRA looks at whether you would reasonably be an employee of the party the services are really provided to. The agency contract and the end client’s onboarding rules both matter. My page on staffing agency contractor tax covers this setup.
Hours, timesheets and equipment
Contracts at 35, 37.5 or 40 hours a week are common here. So are set schedules, timesheets approved by the end client, onsite days or VPN-only access, and client-supplied laptops. CRA reads these as control indicators.
Hours alone never decide PSB status. CRA tests the whole relationship, year by year. The tests come from the Wiebe Door and Sagaz cases, and the central question is whose business it is. The factors are control, ownership of tools and equipment, chance of profit and risk of loss, and whether the work is part of the client’s business or your own.
What PSB status would cost
The 44.5% PSB rate is 33% federal plus 11.5% Ontario. A PSB gets no small business deduction and no 13% federal general rate reduction, and it pays an extra 5% federal tax under section 123.5. The gap is large. Take $150,000 of income kept in the corporation:
- At the Ontario small business rate of 11.2%, the tax is $16,800.
- At the PSB rate of 44.5%, the tax is $66,750.
- The extra tax is $49,950 for one year.
The 11.2% rate applies from July 1, 2026. Income earned before that date was taxed at 12.2%. A corporation with a December 31, 2026 year-end gets a blended rate of 11.70%, which is $17,543.84 on the same $150,000.
PSB status also limits deductions under section 18(1)(p). Only a short list stays deductible: salary and other pay to you, benefits or allowances provided to you, certain costs of selling property or negotiating contracts that an employee could deduct, and legal costs to collect fees owed for your services. Rent, software, equipment, travel, phone, insurance and accounting fees are denied.
No one can promise how CRA will see your file. What we can do is review your facts each year, reduce risk where the facts allow it, and document your position.
How does a first consultation work?
Before we meet
Please send what you have before the meeting. It helps to have:
- Your agency contract and any statement of work
- The end client’s onboarding documents, if you received any
- Your last T2 and financial statements, if your corporation has filed before
- Payroll records and T4 slips, if you pay yourself a salary
- Your GST/HST account details
- Any letter or questionnaire from CRA
In the meeting
You can meet me or my team in person at 55 Queen St E, Suite 1205, or online. We go through how your corporation earns income, how you are paid and how the work is done day to day. I tell you plainly what I see, including any PSB indicators in your facts.
We are accountants, not lawyers. If a clause in your contract needs new wording, that is for your lawyer.
After the meeting
If you decide to work with us, we set up your file and confirm what we handle each year. You then have one firm for the T2, the books, payroll, GST/HST, tax planning and CRA support. When you are ready, you can book a consultation online.
What if CRA has already contacted you?
Some contractors come to us after a CRA letter or a PSB questionnaire. We act as your corporation’s authorized representative. We respond to CRA requests and questionnaires, organize your documents, communicate with the auditor, and review and respond to proposal letters.
My page on CRA PSB review support explains what a review looks like. Please do not answer a PSB questionnaire in a hurry. Facts written down in a rush are hard to correct later.
Why do Toronto contractors choose a small CPA firm?
With a small firm, you deal with the same people every year. I am a CPA in Canada and the USA, with 6 years of cross-border experience and 100+ cross-border files. Our team includes a second designated CPA (CPA Ontario) and bookkeeping support staff.
We have 1300+ five-star Google reviews, and we are a 2026 Xero Awarded Firm.
Our hours, 9AM to 8:30PM, Monday to Sunday, suit contractors who work full days on a client site or a client VPN. You do not need to give up a billable day to meet us.
If you are an incorporated contractor in Toronto or anywhere in the GTA, please book a consultation or call 647-212-9559. Bring your contract and your last T2, and we will go through your file with you.
Frequently asked questions
Do you only work with contractors in downtown Toronto?
No. Our office is in downtown Toronto, but we work with incorporated contractors across the GTA, including North York, Etobicoke, Scarborough, Mississauga, Brampton, Markham, Vaughan, Richmond Hill and Oakville. Meetings can be in person or online.
Can I meet you outside my contract hours?
Yes. Our hours are 9AM to 8:30PM, Monday to Sunday. You can book an evening or weekend time so you do not lose billable hours.
Do you work with Toronto contractors who are not incorporated?
No. We work with incorporated Canadian businesses only. If you plan to incorporate, we can help with the incorporation and then look after the corporation from its first year.
Will you review my agency contract for PSB risk?
Yes, as part of tax planning. We review your contract and your working facts together, because CRA looks at the whole relationship. We are accountants, not lawyers, so any change to contract wording is for your lawyer.
How much more tax would my corporation pay as a PSB?
On $150,000 of corporate income, the tax at the 11.2% small business rate is $16,800. At the 44.5% PSB rate it is $66,750, which is $49,950 more. Deductions are also limited under section 18(1)(p).
Do fixed contract hours make my corporation a PSB?
Not on its own. Fixed hours, timesheet approval and client-supplied equipment are control indicators, but hours alone never decide PSB status. CRA tests the whole relationship, year by year.
What should I bring to a first consultation?
Please bring your agency contract and any statement of work, the end client’s onboarding documents, your last T2 and financial statements, payroll records if you take a salary, your GST/HST details, and any CRA letters.
Can you help if CRA sends a PSB questionnaire?
Yes. We act as your corporation’s authorized representative, respond to the questionnaire and any CRA requests, organize your documents, communicate with the auditor, and review and respond to proposal letters.