When should you have Employees and when should you have Contractors?

When should you have Employees and when should you have Contractors?

As a growing business it may seem like an easy answer – just hire everyone as an independent contractor. No payroll account with Canada Revenue Agency (CRA) to remit income taxes, no vacation entitlement, Employment Insurance (EI) premiums or Canada Pension Plan (CPP) contributions and even the Worker’s Compensation insurance burden goes to the contractor. The contractor invoices and the company simply pays during the next cheque run. When the company reorganizes or needs different skills, just not renew or immediately terminate the contract with the contractor. Easy right? Wrong.

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