A particular organization wants to explore the potential for converting many of their employees into contractors. Which of the following characteristics would potentially lead the Canada Revenue Agency to reject this change in classification?
A) The worker has the ability to refuse or accept work from the organization.
B) The company directs how and where the work should be completed.
C) The worker has control over who actually completes the work.
D) The worker can choose the manner in which the work is completed.

Question

Quizplus · Accepted Answer

When a company directs how and where the work should be completed, it suggests an employer-employee relationship which is not present in a contractor relationship. The Canada Revenue Agency may reject this change in classification if it is seen as an attempt to avoid paying employment taxes and benefits. The ability to refuse or accept work, control over who completes the work, and the choice of manner in which work is completed are all characteristics of a contractor relationship.

A Particular Organization Wants to Explore the Potential for Converting