COMM 353 Lecture Notes - Lecture 6: Privately Held Company, Independent Contractor, Business Travel
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3 income or loss from office or employment. Scenario: employee takes a leave of absence for an undetermined time and company hires a temporary worker to take over some of the tasks. Distinction is important because different tax rules apply to the worker and the company depending on whether the worker is an employee (employment income) or a self employed person (business income). Company contributes to cpp, ei available than for an employee. Ita does not discuss factors to determine employee vs independent contractor status. Therefore, look to case law for how the courts have ruled in cases. Generally, self employed individuals need to invest in their business and manage the operations of their business. Page 3 qualified installers and repair people and contracts them as work becomes available. Trevy informs these workers that they are considered independent contractors, so no withholding of income tax, ei or cpp is made.
