Are you self-employed or an employee?
Depending on whether you are an employee or independent contractor your entitlements will be diversely different and will impact on your ability to collect Employment Insurance or make certain deductions on your income tax returns among other things. For this reason The Canada Revenue Agency has established guidelines to help in determining if an individual is a self-employed independent contractor or employee. In determining the question of employment status the CRA looks at among other things the following:
- the level of control the payer has over the worker;
- whether or not the worker provides the tools and equipment;
- whether the worker can subcontract the works or hire assistants;
- the degree of financial risk taken by the worker;
- the degree of responsibility for investment and management held by the worker;
- the worker’s opportunity for profit; and
- any other relevant factors, such as written contracts.
Employment status will affect an individual’s entitlement to Employment Insurance benefits and how the worker is treated under the Canada Pension Plan, the Employment Insurance Act, the Income Tax Act, and the Work Place and Insurance Board. Meade Accounting & Taxation can assist you with issues arising from employment status.
There are advantages and disadvantages to either category, what is important is that you understand which category you belong to and the consequences of belonging to that group.
At Meade Accounting & Taxation, our goal is to provide our clients tax preparation, accounting, audit representation, and bookkeeping services that are second to none. Our clients range from private individuals to self-employed entrepreneurs and from small and medium sized businesses to large corporations. Our professionally trained staff is always on hand to serve you, whether on the phone, in person, or online. If you operate in Toronto or the GTA (Woodbridge, Vaughan, Mississauga, Brampton, Caledon, Oakville, Burlington, Markham, Richmond Hill, King, Aurora, Newmarket, Pickering, Ajax, Uxbridge) please feel free to contact us and setup a Free Consultation.