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Employed or self-employed?

Are you an employer trying to determine whether a worker is an employee or self-employed? It's important to get this classification right, as it can have significant tax and legal implications for both parties.

The Canada Revenue Agency (CRA) uses a number of factors to determine whether a person is an employee or self-employed. These include:

● The overall working relationship: Does the payor set the hours of work, provide training and/or tools, control the method and amount of pay, and have the right to hire or fire the worker?

● The worker's ability to work for other payers: Does the worker require permission to work for other payers or have the freedom to do so?

● The nature of the work: Does the worker use email addresses and business cards provided by the payer, and do they have to do the work themselves without the ability to hire helpers or assistants?

● The financial aspects of the relationship: Is the worker in a position to realize an investment gain or loss, or are they financially responsible for not fulfilling the obligations of a contract?

It's important to note that the determination of employee vs. self-employed status is not based on one single factor, but rather a reasonable assessment of all factors as a whole. If you're not sure where you stand, it's a good idea to consult with a professional accountant or lawyer to ensure you're properly classified.

Misfeldt Accounting is a a full-service accounting firm based in Kelowna, BC with offices in the West Kootenay's. Misfeldt Accounting is dedicated to helping businesses and individuals achieve their financial goals.

As a team of experienced professionals, we offer a wide range of services, including tax preparation and planning, bookkeeping, financial statement preparation, and much more. No matter what your financial needs may be, we have the skills and expertise to help you succeed.

At Misfeldt Accounting, we pride ourselves on our commitment to our clients. We work closely with you to understand your unique needs and goals, and we strive to deliver personalized, high-quality service every step of the way. Our team is always available to answer your questions, provide guidance, and offer support, ensuring that you have the information and resources you need to make informed decisions about your financial future.

If you're looking for reliable, professional accounting services, look no further than Misfeldt Accounting. Contact us today to learn more about how we can help you achieve your financial goals.

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