I have a client who hires others for professional services, such as writting him content for his work, improving his resume, and enhancing his LinkedIn profile, even providing him career coaching and he pays for that from his own pocket.
Does all those services fall under Accounting & legal fees in Other employment expenses? if not, under what we need to put it?
Hmmm, I would call it subcontractors services. My $0.02
Keith Verdin, B Comm
Accountant
“The hardest thing in the world to understand is Income Taxes.”
Depends what he does himself (what his business provides). If he provides those services to HIS customers, and hires others to provide those services TO or FOR his customers, they would be subcontractors. Otherwise, they would be professional services, which is similar to legal and accounting services.
If you’re asking how to present it on financial statements, I would group it together with legal and accounting, but call it “Professional fees”.
If you’re asking where to put it on the tax return, use an appropriate GIFI code or T2125 line number. If it doesn’t fit into the pre-defined categories, put it under Other expenses.
Others seem to have missed that you mentioned employment expenses. If your client is an employee, these expenses are not deductible. Deductible employment expenses are pretty strictly defined. You can’t just deduct something because you want to. It has to be explicitly defined as deductible, which these are not.
So where does it fall then? Under “other”?
I think @iain.fyffe is telling you that it isn’t a deductible expense so you don’t report it at all. Look here for guidance. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044/employment-expenses.html
Does this client have a business or is the client an employee of a business? @iain.fyffe is understanding you that the client is an employee of a business. @Nezzer seems to have assumed the client operates a business. Hence the different answers. The difference is in the details and we don’t have enough information to properly answer your question correctly.
You said Employment Expenses, so all those expenses are entirely likely personal expenses. What does their T2200 say?