Payroll · GUIDE
Employee vs self-employed
The working relationship affects payroll responsibilities.
Look beyond the contract label
Calling someone a contractor does not settle their employment status. Review how the work is actually carried out and follow the CRA’s guidance for the applicable circumstances.
Why the distinction matters
Classification affects deduction and reporting responsibilities. Document the arrangement and raise uncertainty before processing payments. The CRA provides a route to request a CPP/EI ruling when an official determination is needed.
Official sources
Article reviewed September 13, 2026. Opens in a new tab.