The University of Lethbridge is bound by federal government legislation requiring action under such regulation as the Income Tax Act and the Excise Tax Act. Through these Acts, the University must collect and pay Goods and Services Tax (GST) on goods and services, and withhold tax, CPP and EI as required. Financial Services provides the following resources to the University community to meet these institutional requirements:

GST: Generally, GST is payable for taxable supplies that are not exempt or zero rated, which are supplied in Canada, and are accompanied by a federally issued GST number. Similarly, Harmonized Sales Tax (HST) is receivable or payable for servies or goods supplied in an HST province.

Common issues: the University community should consider the following when requesting payments be made:

* the location of supply of goods and services where HST is charged

* appropriate account coding - refer to our Account Code Dictionary for defintions and descriptions

* Employee versus Independent Contractor decision when paying an unincorporated individual for services. Please note, there are institutional rules imposed to preclude hiring corporations for positions that are covered under union or association agreements.

Tax Guide - Appendix 1 Employee vs Contractor Checklist

Tax Guide for Paying Canadians

Tax Guide for Paying Non-Canadians

Employment Contract vs Contract Income Guideline Memo

Letter - Employment Classification Guideline for Financial Officers (document must be saved before editing)

Letter - Employment Classification Guideline (document must be saved before editing)