• How to Correctly Classify Independent Contractors to Avoid CRA Audits

    Author: MK Bookkeeping Inc. | | Categories: Contractor Classification , CRA Regulations , Payroll Compliance , Tax Audits

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    You face serious payroll audit risks if your working relationships do not match your written agreements during a tax review. Taking proactive control of worker classification CRA standards protects your business from retroactively paying employer Canada Pension Plan contributions, Employment Insurance premiums, interest charges, and heavy statutory penalties. Missteps often occur when day-to-day operations involve substantial management control, company-provided tools, or restrictions that prevent the worker from seeking other clients. You need clear criteria to assess subordination, financial risk, and ownership of equipment before an unexpected inquiry compromises your cash flow. Read on to discover how establishing verifiable independent contractor compliance shields your enterprise and maintains your financial stability.

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