Employee vs Contractor: The CRA’s Definition

Employee vs Contractor: The CRA’s Definition

As a small business owner, you are responsible for making several important decisions every day. From day-to-day operations to adding team members, you must consider a variety of components when running a business. 

When it comes to your team members, it is critical to know the differences between an employee and a contractor. Many businesses would prefer to have a team of contractors, as it requires minimal paperwork and less payroll management. However, both pros and cons exist to having employees and contractors on your team. 

To better understand the difference between these two employment structures, we need to define the two. When it comes to defining employee vs contractor, the CRA, or Canada Revenue Agency, helps make an official determination.

Table of Contents

Factors That Distinguish Employees from Contractors

The CRA lists various factors that officially differentiate employees and contractors in Canada. Consider the following when looking at hiring an employee vs a contractor.

1. The Working Relationship

2. Who Owns the Equipment?

3. Financial Profit and Risk

4. Organization Dependence

5. The Intent of the Parties

Employee vs Contractor: Benefits and What to Consider

Several benefits come with hiring an employee or contractor. However, you should also consider various factors.

Employee Advantages

Contractor Advantages


Group Insurance Plans for When You Have Employees

As previously mentioned, hiring an employee usually requires a business owner to be responsible for administering various benefits. One of the most common employee benefits that companies offer is a healthcare insurance plan. 

One of the most challenging decisions a business owner can make is deciding on a group insurance plan. How do you know which one has the best coverage? Which plan is the most cost-efficient option for your organization?

When you need help finding the ideal group insurance plan for your employees, our team at Group Enroll can help. We help Canadian businesses find various types of group insurance plans.

  •       Life insurance
  •       Dental insurance
  •       Extended health care
  •       Health Care Spending Account
  •       And more!

By considering your company’s specific needs and objectives, we can pull together multiple quotes from different providers to give you a better idea of your options.

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