For nearly 10 years now, the CRA has been paying close attention to independent contractors’ employment statuses and performing audits to determine if they should be deemed Personal Services Businesses (PSBs). Independent contractors across Canada quickly learned the importance of taking steps to protect their independent business status, or else suffer the tax consequences. Recently, the Ontario Government passed Bill 148 that, among many things, will also put a spotlight on independent contractors’ business habits.
This makes today a good time to assess how well you’re doing at ensuring that your independent contracting business is in fact considered a business. This month’s contractor quick poll helps with just that as it includes some basic actions you can take to separate yourself from your clients’ employees. As usual, we strongly recommend you seek legal advice to ensure you’re taking all the proper steps.