Are you a self-employed contractor or employee?
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. The answer
to this question will involve responsibilities in income tax,
Canada Pension Plan, Employment Insurance, labor relation, and
perhaps even other implications.
Even more confusing is the fact you could be considered an
employee under labor relation rules but still be considered
independent for income tax.
When examining whether or not a person is an employee or a
self-employed individual, the key question that is asked is whether
or not the person is engaged to perform services as a person in
business on his or her own account, or as an employee. To do this,
the relationship between the worker and the payer is examined using
a two-step approach.
