Independent Contractor vs. Employee: What's the Difference?

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What is the difference between and Independent Contractor and an Employee in Canada? Canadian Employment Lawyer Lior Samfiru explains the big differences between the two classifications, and why it really does matter, especially when it comes to your workplace rights, severance, and many other reasons.
0:10 What is the difference between an Independent Contractor and an Employee?
1:19 Does it matter which one you are called?
2:18 Can you still be an Independent Contractor if there is a an agreement between the employer and employee about the position?
3:26 My employer doesn't deduct taxes from my paycheque. Does that automatically make me an Independent Contractor?
4:29 If I incorporate, do I avoid being deemed an employee instead of an independent contractor?
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• Learn more about Independent Contractors vs. Employees here: bit.ly/33tI7iM
• Have you been misclassified as a Contractor? Find out by using our Pocket Employment Lawyer resource here: bit.ly/34KB0CO
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Опубликовано:

27 ноя 2017

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Комментарии : 109

@pwettibwoi3645 Год назад

I was young and extremely uneducated on employment laws and I was hired by a company as a "self employed worker" I worked for them for 5 years and now I am in extreme debt due to not understanding the difference. My life came to an abrupt halt due to the cra taking legal action against my "company" and if I didn't see this video I never would have known that I am an employee with rights. I hope a lawyer can help, pray for me lol.

@ELCLAVE300 6 лет назад

This is a huge gray area in the new sharing economy, example would be Uber/Lyft drivers are considered independent contractors but have no control.

@SamfiruTumarkinToronto 6 лет назад

You are right that the gig/sharing economy has created a great deal of confusion where employee/independent contractor relationships are concerned. In fact, our firm Samfiru Tumarkin LLP is currently involved in a class-action lawsuit in Ontario, Canada against Uber, on behalf of an Uber Eats driver. We're arguing that Uber drivers are, in fact, employees of Uber, and NOT independent contractors. As you pointed out, Uber/Lyft and other gig economy drivers are called independent contractors, yet many aspects of their job are dictated by Uber/Lyft, including compensation, what rides they receive, how they should conduct themselves, etc. Here's our website on the matter: uberlawsuit.ca/ (NOTE: we are working on updates to the information found on that site) Here is the latest on our court battle just to have the case heard in Ontario. Currently, Uber contracts with drivers state that ALL employment law matters, no matter what country they originate in, are to be heard in The Netherlands. For any Uber driver, travelling thousands of km to The Netherlands to defend you rights is an absurd and inappropriate requirement.

@ELCLAVE300 6 лет назад

Samfiru Tumarkin LLP Is there any lawsuits pending for California involving Uber/Lyft? I can think of a few things they need to be sued for.

@SamfiruTumarkinToronto 6 лет назад

This website may provide you a thorough update on a similar lawsuit taking place in California uberlawsuit.com

@jsap2125 5 лет назад

What about individuals in the hair industry? Hairstylists and barbers?

@SamfiruTumarkinToronto 5 лет назад

In our experience, most hairstylists and barbers would be considered employees in the eyes of the law, even if the salon calls them contractors. While there could be cases where the hairstylist would truly be an independent contractor, those instances are rare.

@cobracommander... 3 года назад

I work construction. I have 15 years experience. I am a 10-99 that makes an hourly wage. I have no employment contract. I'm told where to work and how to work. I'm also responsible for making sure the other 10-99 guys do what they are supposed to. I'm pretty sure I'm missing classified... As well as 90% of the guys in this biz around here.

@ThistleRealm 2 года назад

They are getting over, plain and simple. You can risk the chance of your contract being terminated or challenge your status. You deserve better than that, especially with 15 yrs experience.

@Adefesio94 3 года назад

I work 10 hours 5 days a week in México, but the company I work for is in the US, I work remotely at home since the beginning (2019). I took some vacations last December 2020 without really knowing what a contractor was (never explained to me by HR, that term doesn't exist in México, just outsourcing and by law you still have rights such as medical insurance, vacations etc). I got paid crap in the middle of the pandemic at the beginning of this month (January 2021) then I knew I also don't have right to money if a termination happens... my stomach is such a mess right now with worries. Feel that, as always, foreign companies just to take advantage of hard working mexicans.. such sad and uncertain times.

@OfftoShambala Год назад

They take advantage of white US citizens as well. But the information is out there… hope you start educating yourself better as you move forward in life. It’s incredulous to me how people go into things blindly when there is so much info that could be found within minutes and digested and investigated within a few hours or sporadically over a week.

@MrMusic0408 2 года назад

whether I'm "hired" as employee vs self employed, I"m still "hired"; what's the difference ? besides this I am most grateful for your program; watch weekly its extremely informative thanks for doing Canadians a favor!!

@leylav9351 2 года назад

My parents is falling apart and always having arguments due to my mum thinks my dad’s company is trying to lure him in a “good” position but doesn’t sound right (my dad is old and can be gullible and easily get into something he doesn’t know). My parents are not business literate, so I’m here watching your videos just to understand the difference between contractors vs employee

@SamfiruTumarkinToronto Год назад

Always happy to help!

@Gabriela-sp3op 3 года назад

How do things stand with federal contracting? The standard procedure is where a subcontractor partners with a prime contractor to split the contracting requirements between them. I am after hiring my subcontracting team, how do I go about doing so?

@AunbisDirectingSouls 11 месяцев назад

I am literally Going through This right now working 7 days a week 12 hour or more everyday Literally coming out of my own pocket to pay expenses. And I am literally doing the same exact thing. There are full-time employees are out here doing.

@SamfiruTumarkinToronto 10 месяцев назад

Sorry to hear that Andy.

@gabrieleisen4236 3 года назад

Hello. I work as a massage therapist at massage spa. My employer say's I'm an independent contractor. They do not give me the autonomy to change my schedule. They claim I need to give them 24 hour notice. Is this right? Great and highly informative video. Thank you for your time and great information

@ThistleRealm 2 года назад

I'm a home healthcare worker. Classified as an independent contractor. Use my own money to buy necessities for certain clients and just to get certain tasks done. Never reimbursed. Make a very low, flat hourly rate. Never paid by the extent of my tasks provided. Not paid for gas/mileage. I was attacked for canceling four hours of service with consent from the family ( only trying to get into a new car after I was hit two months before)....was told by the agency aggressively that " YOU DON'T MAKE YOUR OWN SCHEDULE!!", mind you I work every day of the week for them. I'm really looking into challenging my status, it's actually as if I'm losing more money than I'm bringing in, and there's barely a balance. 🙃😑🤔

@deadcell1 Год назад

@@ThistleRealm If you can't control your schedule then you are a employee, not a contractor. You need to contact the department of labor and file a complaint because a violation is clearly happening.

@gloriagaskins5009 3 года назад

I’m a independent contractors 1099 can a company take out workers compensation and general liability. I work for 6:00am to 2:00pm

@Hello-zg5le 5 лет назад

Hi what about instacart?

@elaineclarke728 4 года назад

I just interviewed with a Mortgage Co. The position that I applied and interview for is Office Manager. The employer told me that I would be the same as everyone else in the office a 1099 contractor with no benefits. However, he set my hours (9 am-6 pm), I would receive a key card to access the office/building, I could not work from home, I would use his phones and his computer. And there would be little to no training for the position.

@gositdown.3800 4 года назад

Nice. You should draw up an agreement that lists your expectations and demands as an employee

@SamfiruTumarkinToronto 3 года назад

Hi Elaine. We can't comment on your situation, as our expertise is limited to Canadian employment law, rather than employment law in the United States.

@abigailwolfe9593 5 лет назад

I am starting a staffing and service agency. My professionals are paid on a commission base. Some will be placed in a salon and if the salon want to keep them than the can buy out the contract and the professionals can also buy out their contracts and work for them selves. Also others would be working for the company under our brand. So would all of them be employees or independent contractors?

@SamfiruTumarkinToronto 5 лет назад

Hi Abigail, Based on the information provided, they would in all likelihood be considered employees, rather than independent contractors.

@kxewws7681 3 года назад

This is mostly about the IRS wanting regular tax deposits. Many “consultants” don’t make timely tax payments whereas an employee’s taxes are withheld each payroll for withholding and also the employer pays taxes too. Just imagine if everyone was classified as an independent contractor? The Treasury wouldn’t receive regular tax payments! That would be a huge problem. So by making it difficult to be a consultant most people are classified as an employee and then the Treasury gets regular cash inflow!

@SamfiruTumarkinToronto 2 года назад

Hi Kxe. Unfortunately, we do not practice employment or tax law in the United States. We do however represent tens of thousands of clients in Ontario, Alberta and British Columbia, Canada.

@blk06eclipse 2 месяца назад

the difference is that the company takes advantages of someone either for tax or financial gain. often used by companies that are lacking funds to pay employees.

@stephtuber9966 4 года назад

Let's assume I am an employee being misclassified as an independent contract worker. What would be the main advantages/disadvantages of hiring a lawyer vs going directly to the labor board to resolve this issue? Assume that I have recently quit and have been employed with the company for more than 8 years in the same role.

@SamfiruTumarkinToronto 4 года назад

If you quit, the advantage of hiring an employment lawyer is that you can achieve a resolution faster and with more control of the process. If you choose to go through the Ministry of Labour, it may take years for your matter to resolve.

@stephtuber9966 4 года назад

@@SamfiruTumarkinToronto Thank you for the quick response. We have already had at least one employee successfully file through the Ministry of Labor and the process for them took only a few months. If you have time, can you explain what you mean by more control of the process? I know the Ministry of Labor will only allow a claim for the previous 2 years - does that change with hiring a lawyer?

@MrGoodsalesman 2 года назад

The book keeper would she not be deducting expense then? I think CRA going to be come calling and there be some back taxes she going to have to pay back.

@scottievaldez4194 Год назад

What about like places like DoorDash? Hired as independent contractors but, treated like employees?

@hooman-26 4 года назад

I’m both an employee and independent contractor for a client; but my employer cannot do anything if the client wants me to work more than the legal hours allowed in my country

@SamfiruTumarkinToronto 4 года назад

Thank you for watching and leave your comment

@usmaness 3 года назад

I work in a company in Canada, but I live somewhere else, I work for about 40 hours per month, wth i am ?

@asht7899 2 года назад

Hi, I am in the middle of a hiring process as a software engineer for a contract role in Toronto. The hiring people asked me to get incorporated. My rate is 40$ per hour. I'm in a dilemma as to whether I need to go for this position. How would the tax filing work? Please advice.

@SamfiruTumarkinToronto 2 года назад

Hi Ash. If you have questions about filing taxes, you should connect with an accountant. If, however, you need your employment contract thoroughly reviewed before you accept it, you should contact our team at www.EmploymentLawyer.ca

@richeneljeanpierre2205 3 года назад

I've been working for this employer for a year now as caregiver. That employer found me on a platform and hired me.They only pay Medicare and social security and left me to pay federal on my own. Now, I've been thinking that I was a self employed or an independent contractor. In fact, it was not after watching your video. Since, I have to be here every week and I have no vacation, sick day, holiday, overtime or any other kind of benefit. What do you think is my best move for this?

@ThistleRealm 2 года назад

Sounds like you're in my boat. Only thing is, the agency I provide work for offers NO benefits, besides getting paid (and THAT'S barely worth anything) lol. You could challenge your status, but be mindful that the company may see fit to terminate your contract if you ARE classified as an independent contractor.

@LS-yf6vu 3 года назад

This is very confusing, I work for a dental agency, they told me i am an independent contractor and i have to do my own taxes at the end of the year, The agency does. not deduct taxes, but my CPA told me I don't have to??

@SamfiruTumarkinToronto 3 года назад

Hi Lorena. If you work in Canada and this is your arrangement (you work solely for a dental agency), you are likely an employee. It does not matter what your employer thinks. They cannot decide that you are an independent contractor. The law determines what your role is. If you work in the United States, we cannot advise you on your situation, as our expertise lies only in Canadian employment law.

@LS-yf6vu 3 года назад

@@SamfiruTumarkinToronto Thank you for your response! Yes I work in New York. I have to find out about this so I don't get in trouble! thanks for your genuine help.

@itsafamilything6540 3 года назад

I want to ask a question different from me contractor or employee I work at a hospital but I'm not full-time with benefits they call us contractor or affiliated does that mean I'm independent I don't get vacation pay sick pay they get bonus I don't get one so where am I thanks

@SamfiruTumarkinToronto 3 года назад

Hi Monique. In Canada, individuals who work part-time hours for a single employer are likely an employee, not a contractor. We would have to explore all aspects of the relationship to make a full determination, but an employer can't simply call you an independent contractor - the law dictates what the relationship is.

@heatherwade2373 10 месяцев назад

So why doesn’t the irs do something about it?

@christopherwilliams2691 4 года назад

What about working as a courier driver for courier express using my personal vehicle for work for the deliveries. I am an independent contractor. I make my own hours and pay for own expense. Am I really and independent contractor? Im in Atlanta, Ga.

@SamfiruTumarkinToronto 3 года назад

Hi Christopher. We can't comment on your situation, as our expertise is limited to Canadian employment law, rather than employment law in the United States.

@tiethecage3127 2 года назад

Yes you are independent contractor if you drive your own vehicle set your own schedule, and they can't take tax out of your paycheck

@tiethecage3127 2 года назад

Especially if you file as a 1099 form that's independent contractor

@truthoverfictionii5760 Год назад

She if you are allowed to work your own hours but you still have to do your job according to their standards. Employee or independent contractor?

@joebustos6413 3 года назад

If you have a skill that you can go out and do by yourself and take full responsibility for results, then your a contractor. If your skill is only good for a company practice and you need their facility to do so ,then your an employee

@SamfiruTumarkinToronto 3 года назад

@Joe where Canadian common law is concerned, that is not correct. Our video above provides a basic review of when a contractor may actually be an employee.

@myrnamargate1871 4 года назад

What if you worked less that 40 hours a week but on a schedule for years?

@SamfiruTumarkinToronto 3 года назад

Hi Myrna. If you worked for a company in Canada as per a schedule set by the employer, you may in fact be an employee rather than a contractor.

@milfcookies1685 2 года назад

I own a painting buisness and am looking to expand with more workers. I’ve hired my first man and I do not know weather to label him as an employee or independent contractor

@SamfiruTumarkinToronto 2 года назад

If a company is looking to hire individuals, and intends to set their hours of work, the type of work that is being done, and for what pay, those individuals are very likely employees, and should be treated as such to avoid potential legal complications in the future.

@milfcookies1685 2 года назад

@@SamfiruTumarkinTorontothank you so much for clarifying. I really appreciate it

@ChristinaOstil115 5 лет назад

I work for a community of townhouses and a tower for 4 days week 2 hours days as independent contractor housekeeper for 9 years. I’m being paid $630 a month and I have my own business name from Oakland Ca

@fenderguitars6050 5 лет назад

it's true !! Ca is wacky place now ,, On January 1, 2019, a lot of Employers ( jobs ) fired their subcontractors and made 'some' loyal workers into FULL "employees" ,.. THIS Was a mistake by them,.. #Uber and #Lyft are doing this exact same thing too ,..on a broader scale ,.. Employers may not know it ,.. but they can be badly sued for doing this, risking liens ,..and even worse Ca Tax liens and from bureaus of the likes of the EDD DEPT OF unemployment Calif , Consumer right's Attys, etc,.. many will come at their former employers with lawsuits using things like "Age discrimination" and they may win too !! because liberal judges will ask; "well,..why then did you fire the guy ??" LOL

@stevstevhoov8288 5 лет назад

Truckers are screwed now in CALIF ;; thousands of subcontractors were fired in early january 2019 and they were not offered to become employees ,,not that they would want to!! Your job where you made 1000 & ,More $$ per week now is offered at 11.22 $ an hour to "Conform" with the new california slave labor codes,,lol, effed up supreme court tried to punish uber and ended up not punishing uber at all but rather everyone else!! uber still pays nothing, they aren't afraid of a stupid 25,000 $ fine and edd lien but others are screwed here,.. "Employers" are getting sued now and they deserve it !!

@SamfiruTumarkinToronto 4 года назад

Unfortunately we can't really comment on your situation, as you are employed in California. Our firm handles matters in Ontario and British Columbia, in Canada.

@tristanirby6272 4 года назад

After watching this this video it makes me think of the WWE and how Vince McMahon classifies his WWE Superstars as Independent Contractors and not employees but yet they can’t wrestle anywhere but WWE and needs their approval for everything of course that’s pro wrestling. Whereas AEW I think it’s the first and only company that I know of call their wrestlers employees and give em all employees benefits lol. But it’s cool I’m not invested in AEW yet. I’m only invested in WWE

@SamfiruTumarkinToronto 4 года назад

Thanks for your comment Tristan, interesting points!

@Marcus_Kramer 4 года назад

Bye Vince see you in jail

@richardmaldonado6945 2 года назад

Okay I work at a barbershop I rent the chair I pay rent 150 a week , work my own hours no set schedule

@crystalstanley4353 2 года назад

Hi so I work for a broker but am a 1099 self contractor by my bosses description. I can not miss any days I can not get any vacation. My coworkers can but I am not allowed to as I make my boss a lot of money however when it comes time for me to get paid EVERY FRIDAY IT IS LIKE PULLING TEETH to get my pay and to be told every week no you can not collect this amount I deal with a lot of customers renting apartments my boss gets the money at each deposit I have to wait and prove over and over that the prospective tenants are approved. I deal with being humiliated in front of my coworkers when I need to collect on my deals when it is time to pay rent. I'm not sure if I'm venting or commenting to see if what I am dealing with is normal or illegal any feedback would be greatly appreciated thanks!!

@SamfiruTumarkinToronto 2 года назад

Hi Crystal. Unfortunately we can't help you with your situation as we are currently licensed to practice employment law in Ontario, Alberta and BC (Canada), but no regions in the United States, yet (as of March 2022).

@GreatBoneStructure 5 лет назад

I still can't figure out which one I am.

@SamfiruTumarkinToronto 5 лет назад

What is your current work relationship like?

@TheSpicyPotatoe 5 лет назад

bro answer the question

@maroni64 4 года назад

ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-mUdmP4ZCiuY.html

@TheSpicyPotatoe 5 лет назад

lmao why am i learning all this XD

@SamfiruTumarkinToronto 4 года назад

Because knowledge is power!

@jowildcat40 4 года назад

Samfiru Tumarkin LLP Employment Lawyers Great answer. Planning to go the LLC route and will eventually employ others. Good to know how people are viewed under the law.

@ralphcristinagarcia5481 6 месяцев назад

Contractor vs subcontractor photos of work belong to who?

@curtallen7755 5 лет назад

Samfiru I know you can't be that absent minded when describing A independent contractor and a employee.If your building homes and you say I'm working for Cash builders but I pay my own insurance and I fill out a 1099 at the end of the year.Even though you are working on a job and was asked to come work on this house it would make you a independent contractor.Love the way you dodged that.I know why and for you first time contractors that are getting insurance.Ask about your salary for the year that all states already know where your profession starts out .Guess what if it's $50,000 you pay that up front on top of the amount they ask you how much is your company going to make the 1st year.Then they tell you the %% on that differnt for every contractor

@SamfiruTumarkinToronto 5 лет назад

Curt, your comment is confusing, so it is extremely difficult to properly respond. Also, your reference to a 1099 suggests you are an American resident. Our firm deals with employment laws and regulations in Ontario and British Columbia (Canada) only.

@my_master512 3 года назад

With the exception of Uber and Lyft because in my opinion those are not independent contractors into the fact that they receive all their work and all their orders from said company. But just because you consistently get work from one company does not mean you’re an employee you can be an independent contractor receiving a 1099 and do 90% of your work for one company but you hold your own insurance and your own license therefore you are an independent contractor how much work you do for one person does not make you their employee that’s just people that want to use the benefits of being a independent contractor when it suits them and then being an employee when it suits them and that’s straight bullshit if you signed up knowing you were signing up as an independent contractor and that was what you agreed upon that should be the end of the discussion but of course not here in America where everybody wants to shove their hand in everybody else’s pockets!!!!!!!!!!!

@eq5987 2 года назад

Incorrect there independent contractor. They don’t have to report to any body Uber and lift can make 2000 a week easily and still can claim unemployment but a employee makes 200 a week taking about there doing something an can’t even draw unemployment on or off work while a private contractor can work and draw unemployment .lPlus a employee wages is stagnant no matter how much they pay in a hour . But not a private contractor they are based off profit or aka unlimited unexpected earnings

@blk06eclipse 2 месяца назад

Simplemente no trabaje 1099 porque el empleador carece de fondos. O simplemente no te valoran a ti ni a tus habilidades.

@crumb9cheese 3 года назад

Now look into agricultural employees bs contractors labor laws and rights. You talk about the normal working world. Ag is a whole other beast

@SpeechesBeyond 2 года назад

I wish your law firm would call me back but I still haven't heard anything ?

@SamfiruTumarkinToronto 2 года назад

Did you receive a response from our intake team?

@SpeechesBeyond 2 года назад

@@SamfiruTumarkinToronto No I did not unfortunately but its most likely because you guys are so busy. I ended up getting another lawyer who took my case on a contingency fee . My case is pretty big . I have 5 witness statements and 3 character reference letters with other evidence. I'm a victim of Workplace Harassment and When I brought it up by email to my boss. I was retaliated against and fired for What I had already written to him in a email. I was almost a 7 year employee. It has caused me to fall back into depression. thank God we have good lawyers like you. I love your show by the way thank you .

@cjeezeljonzon4147 Год назад

He works us as employees, but calls us contact worker

@SamfiruTumarkinToronto Год назад

If many aspects of your work for a company are similar or identical to what an employee would experience, then you are likely an employee, no matter what your employer calls you.

@broadwayboy6024 4 года назад

Exclude independent contractors from the antitrust laws

@JordonRenn93 3 года назад

Still waiting for you to tell me the difference, you just kept saying ways someone could be an employee. You didn't have any specifics on how to differentiate the two and how you should be treated as an independent contractor. This seems to be anti-IC in that sense.. Being in a legitimate IC agreement can give you the opportunity to start and grow a business, it's only when it's abused it becomes not so great.

@rachelkruitbosch3156 3 года назад

This basically was a glorified ad for them to try to help contractors file false wages claims. Notice all the hype about how much you could be entitled to? LOL

@freedancejvs7402 Год назад

It's really sad that most people that lost jobs cannot afford good lawyers or any. So the poor are always victims. Unless you work for big corporations and the settlement is a lot for you to be able to pay legal fees. The rest of us will never be able to afford this firm. $570 plus GST per hour is what these lawyers will charge on average 😢.

@SamfiruTumarkinToronto Год назад

The great news is that our firm offers contingency fee arrangements, which applies to a vast majority of the cases we handle! This allows all manner of Canadians to access justice when they lose their job. They don't have to pay an hourly fee. You don't pay unless we win your case.

@freedancejvs7402 Год назад

@@SamfiruTumarkinToronto Can you please let us know who we are supposed to contact about this. We did contact intake but she said contingent fee is not available. Thank you so much.

@jonathankennedy5066 Год назад

How does Suddenlink get away with this crap then

@eq5987 2 года назад

If your an employee you have rights = a bunch of lies you amhave no rights . Reason 1 the at will law stating they can fire you for no reason Number 2 why a employee has no rights is the gentleman beings up the rights of minimum wage but the rights of minimum wage is not a right it just means that 7.25 cents an hour is a unlivable slave wage we legally can not pay you under 7.25 cents an hour that’s not a law but a disgrace . To say you can’t pay a human being under 7.25? Being used as a argument is the dumbest thing he could do

@kenneycooper6199 4 года назад

Independent contractor? You're a glorified employee. 😉

@eq5987 2 года назад

A independent contractor is not a glorified employee dummy because the employee has zero rights and obligations or advancing

@liftmedia5291 5 лет назад

He is explaining it so wrong

@SamfiruTumarkinToronto 5 лет назад

Thank you for leaving a comment on our video. The rules/law surrounding the status of employees vs. independent contractors in provinces like Ontario and British Columbia are very clear, and we explain the differences and misconceptions in this video. Did you have a question about the topic that you would like further clarification on?

@TheSpicyPotatoe 5 лет назад

he told you girl hahahaha

@rachelkruitbosch3156 3 года назад

He never went through the litmus test of what the government stipulates for one or another. This is basically a glorified ad. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-VKiKz821vVY.html check out this person describing business in Canada and what legally defines you one way or another. not only do they describe it properly thoroughly and legally in the RU-vid video, they even add comments and descriptions that are perfect notes!

@blk06eclipse 2 месяца назад

Simplemente no trabaje 1099 porque el empleador carece de fondos. O simplemente no te valoran a ti ni a tus habilidades.