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Before making a major financial decision you
should consult a qualified professional.
Are You an Employee or a Self-Employed Independent Contractor?
The question of whether a person is in a business
relationship (self-employed independent contractor) or in an employee-employer
relationship is not one that is always easy to
answer. There have been many court cases on this
subject. The courts generally look at the following
criteria in making their decisions:
control - more control is generally exercised by an
employer over an employee than by a client over a
chance of profit/risk of loss - self-employed persons
usually have some degree of financial risk, and more
opportunity for profit than employees
integration - an employee's job will be an integral
part of an employer's business, where the tasks
performed by a self-employed person will likely be
less integrated with the client's business
tools and equipment - self-employed persons are more
likely to be supplying their own tools and equipment, as
well as being responsible for their maintenance
These topics are further explained in the CRA publication
or self-employed. A comprehensive checklist is
also provided in this publication. This checklist is
useful for a worker or a payer (employer/client) to help
determine whether their relationship is a business
relationship or an employer/employee relationship.
CRA also has information on the following categories of
workers to help determine whether they are employees or self employed for
purposes of CPP and EI, in their web page CPP/EI
Are you unsure of your employment status, or of the
employment status of someone who works for you? A payer, employer,
self-employed worker or employee can request a ruling from the CPP/EI Rulings
Program as to the worker's employment status. See How
to obtain a ruling for CPP and EI purposes on the CRA website.
For more information for self-employed individuals, see