Volume 10 • 2023 • Issue 5

The Canada Revenue Agency provides a checklist to help determine if a worker is an employee or an independent contractor. Independent contractors are viewed as businesses themselves, which are contracting with other businesses to provide services. The law treats them as equal to the employer. A person can be classified as an employee if most or all of the following characteristics are present: z person works exclusively for the payer z business provides tools z business controls duties, whether that control is used or not z business sets working hours z person must perform services z business provides pension, group benefits z person is paid vacation pay z business pays expenses z person paid salary or hourly wage z person reports to business’ workplace on regular basis A person can be classified as an independent contractor if most or all of the following characteristics are present.When the worker: z may work for other payers z provides tools z decides how the task is completed z sets own working hours z may hire someone to complete the job z does not participate in payers benefit plans z receives no vacation pay and no restrictions on hours of work or time off z pays own expenses z is paid by the job on predetermined basis z submits an invoice to payer for payment z may accept or reject work For more information, see: canada.ca/en/revenue-agency For example, can they set their own hours? Can they work for more than one practice at a time? If not, they might not have the level of control as an independent contractor.” Koldorf says in the last five years, she has seen an increase in the number of workers who fit within this third category. Dependent contractors tend to get some employee protections, but not all. “An example might be a dental hygienist who solely works at one practice,” she says. “The law may require that a dependant contractor is given reasonable notice if their contract is terminated.” The information provided is of a general nature only and should not be considered personalized legal, financial, accounting or tax advice. If the person falls somewhere in the middle of this continuum the classification of employee or independent contractor can become complicated. 29 Issue 5 | 2023 | SupportingYour Practice

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