Today we’re going to determine if your client is an employee or an independent contractor under Canadian tax law.
I just have a few questions for you.
From now on, I will refer to your client as the “worker”, and the person or company that hired him or her as the “hirer”.
What is the worker's profession or occupation?
How would you describe the hirer’s business?
Does the contract between the worker and the hirer specify whether the worker is an employee or an independent contractor? Or does the contract specify whether the worker is in a contract of service or contract for services?
Schedule: Does the worker set his or her own hours and schedule?
Supervision: Is the worker – or the work done by the worker – monitored or supervised by the hirer?
Instructions: Does the worker determine what work should be done?
Is the worker free to work for other people or for other companies while working for this hirer?
Sub Contracting: Can the worker delegate work or subcontract work without notifying the hirer?
What are the most important tools or equipment for the worker's profession or occupation?
Who owns these tools or equipment?
What other tools or equipment does the worker use?
How is the worker paid?
Does the worker receive any commission on sales by the hirer?
Other than the loss of work, is the worker personally at risk of any loss?
Where does the worker do most of his or her work?
Who pays for the worker's transport?
To what extent is the worker involved in the hirer’s main business?
How long has the worker worked for the hirer?