Tax Tip 23 of 32, it makes a difference at tax time!
Employee or independent contractor
Are you self-employed? Make sure you understand the requirements set by the Canada Revenue Agency (CRA) if you want to take full advantage of the tax benefits.
“These criteria are very specific and spell out who is an employee and who qualifies as an independent contractor,” explains Toronto-based Chartered Accountant Leonard Goldberg.
“To claim deductions as an independent contractor, you should generally meet the following criteria: you should have full control over how you conduct work for clients, provide all of your own equipment to complete the job, and deliver these services as a registered business. You should also have income from other clients, and sub-contract to other suppliers. The final determination is always a question of fact,” explains Goldberg.
For more information on self-employment and to determine if you meet the criteria used to define an independent contractor, visit the CRA website at
[url=http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/slf/menu-eng.html]http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/slf/menu-eng.html[/url].
Brought to you by the Institute of Chartered Accountants of Ontario.
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The Institute of Chartered Accountants of Ontario is the qualifying and regulatory body of Ontario’s 33,000 Chartered Accountants and 5,000 CA students. Since 1879, the Institute has protected the public interest through the CA profession’s high standards of qualification and the enforcement of its rules of professional conduct. The Institute works in partnership with the other provincial Institutes of Chartered Accountants and the Canadian Institute of Chartered Accountants to provide national standards and programs that are used as examples around the world. </em>
