Read more on the differences between being an employee and a self-employed contractor I’m a self-employed contractor. For the most part though, this is why independent contractors charge a higher rate than employees are paid. Unless this was negotiated into a contract. Should you become unemployed, you won’t be able to collect EI because you didn’t pay into it.īecause the work is contracted, you do not receive benefits, sick pay, or holiday pay. If you lose a job or are terminated by the company that contracted you, you are going to be left without severance. You have no guarantee of steady income and may either make a profit or incur a loss.
When you’re a contract employee, there is little to no job security. Because you’re not on their payroll, they don’t have to deduct taxes, make EI and CPP contributions, or follow employment standards legislation.Īll that freedom comes with risks. You don’t have anyone overseeing your activities and you’re free to work when, and for whom you choose, and may provide your services to different payers at the same time.īeing a self-employed contractor can also make it easier for those you work for. Self-employed contractors set their own terms and decide how and when to perform the required work. What is a self-employed contractor in Canada? If you’re working as a self-employed, independent contractor or thinking of becoming one, here are some things you should know. There’s a big difference, and understanding the differences between the two can have a significant impact on your income tax. Are you an employee or self-employed contractor?
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