Below is information for local divisions about source deductions and GST payments related to sessional payments made to directors* and committee or working group members, provided by the Doctors of BC Finance Department. Please note: this is information only, not formal advice. We recommend that local divisions seek the services of a professional accountant
- Directors*: If a physician is working on behalf of the division (i.e., representing the division) then CRA considers the physician to be an officer of the division, therefore an employee. Income tax and CPP should be deducted. Employment Insurance premiums may or may not be deducted depending on the interpretation of the current CRA rules by your professional accountant. (*NOTE: In this context, “director” refers to a local division’s elected board members)
- Committee and working group members (non-director positions): Each doctor should advise whether they are invoicing as employed or self-employed. If he/she invoices as employed, all relevant source deductions apply.
Read more about how the CRA defines employed vs self-employed
GST for sessional payments
Divisions must pay GST on sessional payments if it is included on the invoice (i.e., sessional form signed by the doctor) and the doctor’s GST number is included on the form. See details on how to collect and calculate a GST rebate.
How to collect a GST Rebate
- Complete and file: GST66 – Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund. Form needs to be filed only once.
- CRA will send you: “GST284 Application for GST/HST Public Service Bodies’ Rebate and GST Self Government Refund” form for all future reporting periods.Rebate applications can be completed either annually or every six months for non-GST registrants. GST registrants can file a rebate request each GST/HST reporting period.
- Complete and file: GST523-1 Non-profit Organizations – Government Funding. Form must be filed each fiscal year.
- You also need to have form GST322 Certificate of Government Funding, completed and signed by Doctors of BC. You do not have to file this form. Just keep it on hand. We are developing a process to have this form completed for each division, signed by Doctors of BC, and sent to the respective division.
Calculating GST rebates
- Generally the rate is 50% (in BC after March 31, 2013) of GST (5%) paid on all purchases that are not otherwise eligible for refunds as Input Tax Credits (“ITC”) or other rebates or refunds.
- The Public Service Bodies’ Rebate is dependent on a division’s circumstances and can be a complex calculation. This is best done by a professional accountant.
- See the CRA publication RC4034 – GST/HST Public Service Bodies’ Rebate for more details about the calculations.