Employment
12

Does your non-profit understand the risks faced if a contractor is found to be an employee?

Employee versus Contractor
Orange: Question / Learning
What is the risk?

If a worker is found to be an employee rather than a contractor, the non-profit could:

  • Owe wages for sick pay, vacation pay, overtime, parental leave, or severance
  • Owe contributions to CPP/EI for both the employee and employer portions going back 6 years
  • Owe income tax deductions
  • Owe workers’ compensation premiums
  • Potentially face increased future premiums, legal costs, and penalties
  • Potentially face damages if the worker is found to be an employee who was wrongfully dismissed