Associate Split and Contractor vs Employee Calculator

The short answer

An associate can work with a clinic in three common ways: as a contractor paid a percentage of collections (the clinic provides space, staff and supplies), as a contractor who pays the clinic a flat fee and keeps the rest, or as an employee on salary. Each one splits the same collections differently between the associate and the clinic, and each carries different costs: a contractor pays both halves of CPP and sets aside their own tax, while an employer pays CPP, EI, WorkSafeBC and possibly BC Employer Health Tax. This tool compares them side by side. It is not a ruling on whether someone is an employee, because that depends on the facts, so there is a status checklist as well.

Where to find the numbers

Number	Where it comes from
Associate’s collections	The billing or collections report for that provider for the year.
Clinic’s cost to support the associate	The share of space, front-desk and support staff, supplies and equipment the clinic provides for that provider. An estimate from the clinic’s income statement.
Split percentage or flat fee	The associate agreement or the offer being considered.
Clinic’s current BC payroll	Total BC payroll of the clinic and associated companies for the year (salaries, bonuses and taxable benefits), from payroll reports. Needed for Employer Health Tax.

Number

Where it comes from

Associate’s collections

The billing or collections report for that provider for the year.

Clinic’s cost to support the associate

The share of space, front-desk and support staff, supplies and equipment the clinic provides for that provider. An estimate from the clinic’s income statement.

Split percentage or flat fee

The associate agreement or the offer being considered.

Clinic’s current BC payroll

Total BC payroll of the clinic and associated companies for the year (salaries, bonuses and taxable benefits), from payroll reports. Needed for Employer Health Tax.

Your arrangement

The boxes start with made-up example numbers. Replace them with your own. Nothing leaves your browser.

Money in

Collections from the associate’s patients, per year$

Clinic’s cost to support the associate, per year$

Associate’s own business costs if a contractor (insurance, fees), per year$

The three options

A. Associate’s share of collections%

B. Flat fee paid to the clinic, per month$

C. Salary per year (including vacation pay)$

Benefits paid for the employee, per year$

WorkSafeBC rate per $100$

Clinic’s current BC payroll, per year$

Include the extra BC Employer Health Tax the new payroll could cause

Contractor or employee? Tick the facts that are true

The CRA and the courts look at the whole relationship: control, who supplies the tools, whether the worker can hire helpers, and who carries the financial risk and has the chance of profit. What the contract calls the relationship is not enough by itself. Health professionals should also check their college’s rules and any facility agreements.

If this happens, then that

If…	…then
You pay a percentage of collections	The associate shares the risk of slow collections and low volume. The clinic keeps the rest after supporting the associate. It only works as a contractor arrangement if the facts support self-employment.
The associate pays a flat fee	The clinic’s income is steady but the associate carries all the volume risk. The fee should cover the clinic’s cost to support them.
The associate is an employee	The clinic withholds tax, CPP and EI and pays employer CPP, EI and WorkSafeBC, vacation pay and possibly Employer Health Tax. The clinic carries the volume risk.
The clinic’s BC payroll is near or over $1 million	Each new employee can push the clinic into Employer Health Tax. Related companies share one exemption.
Most status facts point to employment but the associate is paid as a contractor	The CRA can reclassify the worker. The clinic could owe the missed CPP, EI and tax, plus penalties and interest. Get advice before relying on the arrangement.

If…

…then

You pay a percentage of collections

The associate shares the risk of slow collections and low volume. The clinic keeps the rest after supporting the associate. It only works as a contractor arrangement if the facts support self-employment.

The associate pays a flat fee

The clinic’s income is steady but the associate carries all the volume risk. The fee should cover the clinic’s cost to support them.

The associate is an employee

The clinic withholds tax, CPP and EI and pays employer CPP, EI and WorkSafeBC, vacation pay and possibly Employer Health Tax. The clinic carries the volume risk.

The clinic’s BC payroll is near or over $1 million

Each new employee can push the clinic into Employer Health Tax. Related companies share one exemption.

Most status facts point to employment but the associate is paid as a contractor

The CRA can reclassify the worker. The clinic could owe the missed CPP, EI and tax, plus penalties and interest. Get advice before relying on the arrangement.

Tax figures use the same simplified 2026 federal and British Columbia estimate as the firm’s other tools (employment or self-employed income only, no other income or deductions). The firm can work out the real numbers for your clinic. See healthcare accounting and the Employer Health Tax guide.

Where this comes from

Links open other websites.

CRA: RC4110, Employee or self-employed?
BC government: Employer Health Tax
WorkSafeBC – employer coverage and rates

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Information only. General estimates and checklists, in 2026 dollars, using simplified assumptions. Not accounting, tax, legal or professional-regulatory advice. Rules and rates change, so confirm them with your regulator, the CRA, the BC government or your accountant.

Example numbers are made up. They only show how the tool works. Replace them with your own.

Want advice for your own situation?

This free tool is a courtesy of HJ Wu & Company Inc. (CPA), a Vancouver CPA firm offering accounting, tax, financial reporting and review assurance. Feedback on the calculators is welcome.

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