What does the CRA consider self-employed?

The Canada Revenue Agency (CRA) considers you self-employed if you run a business as a sole proprietor, are a partner in a partnership, or work independently without a business name. Self-employed individuals generally control their work, bear the financial risks of their business, and have the potential to profit from their business activities.

Key factors the CRA considers when determining self-employment include:

• Control : How much control the worker has over how and when the work is performed.
• Ownership of Tools : Who owns the tools and equipment used for the work.
• Profit or Loss: The potential for profit and the risk of loss.
• Integration : How integrated the worker is into the payer's business.

Self-employed individuals must manage their own tax obligations, which include remitting GST/HST, paying both the employer and employee portions of CPP contributions, and keeping track of business expenses and revenues.