3.5. As an independent contractor, the consultant is not entitled to participate in benefits or a pension plan that the company makes available to its employees. The advisor does not receive any of the following or similar payments from the company: vacation pay; vacation pay; sickness benefits; overtime pay; benefits; car allowance or company cars; or refund. If you sign an independent contractor in Ontario, you have not paid Employment Insurance. Of course, you can pay for it yourself if you want, but you don`t have to. Individuals who sign independent business subcontracts have more deductible tax expenses and may enter into more than one contract or have multiple clients. Independent contractors must keep records themselves or use an accountant. They also have to pay for their equipment and maintenance and there is always a risk of loss. If your independent contractor contract lasts more than a year, you may need to start paying income tax rates.
They are also not entitled to employee tax credits. The parties may apply to the Canada Revenue Agency (CRA) for a verify worker status. It is best to do this at the beginning of the relationship, when there are doubts about the tax status of the worker. This is done with form CPT1….