Canada Guidelines to Determine Independent Contractor or Employee Status

Do you know how the tax authorities determine the difference between an employee and an independent contractor?

Many employers are considering hiring staff on a contractor basis, instead of employing them outright, as a means of reducing the employer's obligation for payroll remittances. But it's important to be sure that you know which factors determine whether a worker is an employee or not.

This set of free Guidelines for Canadian employers explain what Canada Revenue Agency looks at, and how a court would determine whether someone who works for you is an employee, even if you assumed you were retaining them as a contractor.

The Guidelines to Determine Independent Contractor or Employee Status in Canada are available as a PDF download.