CRA - Employee or Self-employed?

It is important to decide whether a worker is an employee or a self-employed individual. Employment status directly affects a person's entitlement to employment insurance (EI) benefits under the Employment Insurance Act. It can also have an impact on how a worker is treated under other legislation such as the Canada Pension Plan and the Income Tax Act.

When it comes to employee benefits, enrolling a self-employed independent contractor can cause massive problems as indicated in this clip below.

Indicators showing that the worker is a self-employed individual

• The worker hires helpers to assist in the work. The worker pays the hired helpers.
• The worker does a substantial amount of work from their own workspace and incurs expenses relating to the operation of that workspace.
• The worker is hired for a specific job rather than an ongoing relationship.
• The worker is financially liable if they do not fulfil the obligations of the contract.
• The worker does not receive any protection or benefits from the payer.
• The worker advertises and actively markets their services.