Comment by Tom Sweeney on June 2, 2010 at 11:02am

Neha - interesting blog post. I think you've got a good discussion going on here. I think the answers to your questions will depend on the candidates you are speaking about. My firm in particular deals with a range of seniority when it comes to the positions we staff. Our more senior consultants have their own incorporated companies and indeed will be responsible for covering the burden associated with HST. Whether they want to take this into affect when it comes to setting their per diems that is up to them but I would caution consultants from doing so. The more they make the more they will be taxed right? Consultants should also be able to see that while the market is improving and rates are on the rise - there are still a lot of people on the street looking for work that are willing to take a lower rate to get back in the game.

In terms of the younger consultants out there who get processed as a temporary employee, the company will indeed be accepting the HST burden. I can invision a scenario where some firms simply won't work with temp employees in the future as the tax implications are going to increase. They will look to work with sole proprietors or incorporated resources to avoid paying these burdens....

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