Set 6 TX Employee vs Contractor

Question 1

Main tests (6)

Answer 1

Control of how work is to be done
Ownership of tools - if costly and borne by individual, prob ind contractor
Chance of profit/ risk of loss
Integration - can individual work elsewhere?
Specific results
Intent

Question 2

Tax implications of being employee

Answer 2

earns employment income, not business
limited tax deductions
CPP/EI/income tax with-held at source
Job security
Employer pays 50% of CPP
No record-keeping needed
No need to register for GST
Can collect EI
Benefits provided
Can get employment tax credit
Must file by April 30

Question 3

Tax implications of being ind. contr

Answer 3

earns business income
many deductions available 
have to pay own income tax/EI/CPP
have to pay employer portion of CPP
have to pay instalments
register for GST if over 30k
Can collect EI in limited circumstances
must include revenue and expenses in tax filing
Cannot get employment tax credit
Must file by June 15