CRA + Contractors

CRA AND INDEPENDENT CONTRACTORS

Highlights / extracts of RC4110 Employee or Self-employed?:

Step One: "We ask the worker and the payer what their intent was when they entered into the working arrangement. Did the two parties intend to enter into a contract of service (employer-employee relationship) or did they intend to enter into a contract for services (business relationship)?"

Step Two: "We ask the worker and the payer questions that will help us understand the working relationship and allow us to verify whether the intent of the parties is reflected in the facts." Examples include:

- the level of control the payer has over the worker's activities;

- whether the worker provides the tools and equipment;

- whether the worker can subcontract the work or hire assistants;

- the degree of financial risk the worker takes;

- the degree of responsibility for investment and management the worker holds;

- the worker's opportunity for profit;

- and any other relevant factors, such as written contracts.

Factors that the CRA has stated that they consider: Control; Tools and Equipment; Financial Risk; Responsibility for Investment and Management; Integration; and Opportunity for Profit

As such, when look to apply this interpretation of the law to the structuring of your business operations as an independent contractor, contact lawyer Christopher Neufeld at Chris@NeufeldLegal.com or 403-400-4092.