Importance of Determining the Correct Status
Workers who consider themselves to be self-employed or are considered self-employed by a work provider may nonetheless be considered employees according to our criteria. Employers sometimes encourage certain employees to become self-employed. However, the fact that both parties are in favour of this change does not mean we will consider the worker to be self-employed.
We may, in the course of an audit, assess the situation and conclude that a worker identified as a self-employed person is actually an employee. The employer will then have to pay the employer contributions that should have been remitted.
If the work provider and worker disagree on the worker's status, they can ask us for a ruling by filing the following forms:
- Application for Determination of Status as an Employee or a Self-Employed Person (form RR-65-V)
- Questionnaire to Determine the Status of an Employee or a Self-Employed Person (form RR-65.A-V)
The Canada Revenue Agency also publishes a guide entitled Employee or Self-Employed? (RC4110), which is intended for work providers and workers.