You might be an Independent Contractor if …

The Greater Toronto Area, within the past year or so, has been “blessed” with a new a.m. radio station that plays all comedy all the time. As a result, my memories of Jeff Foxworthy and his comedy routine have been re-kindled and in a weird way, inspired this Blog.

The independent contractor/employee issue has been an issue I’ve litigated through most of my 22 years as a lawyer. As with many areas of law,  it makes a cyclical appearance every five years or so.  Lately, the issue has come up a lot during conversations with business owners during October’s Small Business month.

Many “employers” are clearly confused if a person is an employee or independent contractor, so in order to help:

You might be an independent contractor if your “employer” provides the tools of the trade for you.

You might be an independent contractor if your “employer” sets the hours of work for you.

You might be an independent contractor if you are limited in what you can earn and take on no financial risk in your contract.

“Employers” need to pay attention to this issue. If the CRA investigates and finds that a person is truly and employee, the “employer” will be liable for failing to make income tax deductions at source, failing to make Employer contributions to CPP, EI and EHT (if applicable) as well as penalties and interest.

Nobody wants that.

Inga B. Andriessen JD