Legally Speaking: When is an Independent Contractor an Employee?

Often small business owners hire workers on contract and classify those workers as "independent contractors" not employees. This distinction between "independent contractor" and "employee" is crucial to the establishment of an employer's liability for payroll taxes during the relationship and severance pay when ending the relationship with a worker. Our courts, and Revenue Canada, often find employers have wrongfully classified employees as contractors.

Often small business owners hire workers on contract and classify those workers as “independent contractors” not employees. This distinction between “independent contractor” and “employee” is crucial to the establishment of an employer’s liability for payroll taxes during the relationship and severance pay when ending the relationship with a worker. Our courts, and Revenue Canada, often find employers have wrongfully classified employees as contractors.

Source: www.canadaone.com