A trend we are seeing on the rise is self-employment as the gig economy takes off. But what does it mean to be a contractor versus an employee? It may seem attractive to hire a contractor over an employee because then you do not have to worry about remitting payroll deductions to CRA and you do not have the same commitment to an employee contract, which usually appeals to small businesses and startups.

Most people do not know the difference between an employee and a contractor, so if you don’t, you are in good company. The bad news is that if you do not withhold the necessary source deductions that you would if they were employees, it can result in a hefty fine and penalties on late payments.

It goes without saying that misclassification is risky business. It’s best to consult CRA’s RC4110 Guide to help you determine a worker’s status. Here are some helpful tips to help you figure it out:

Still not sure? You can ask CRA for a ruling via your CRA account or come talk to us. We would love to help!

Do you have receipts scattered on your car floor? Are you like 99% of the population and hate filing? Do you struggle at tax time to gather up all your information because you had 99 other things to do that were more pressing than filing your gas receipt in your colour-coded accordion file? If yes, you are not alone.

In fact, we speak to many customers who love to talk about what they do, but cringe when they hand over their shoebox of receipts. Don’t worry! We love your shoebox. It’s ok. But maybe you want to reduce your bill or feel more on top of your record keeping. How much did I pay last year on supplies? Why do I feel like I made less money this year when I felt busier?

It goes without saying, great records not only brings what makes your finances better into focus, but can also save you some hard-earned cash at tax time. Don’t worry. There is new technology out there that can help you have the great records you dreamed of without paying for a regular bookkeeper.

We can help you set it up and answer your questions if you ever run into trouble.
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Got more questions about CEWS? Contact Us.