Signs they're a subcontractor (self-employed)
- They pick when and for whom they work, and have other clients at the same time.
- They're paid per job at a price you negotiated, not by the hour.
- They bring their own tools and equipment, and fix bad work on their own time and money.
- They can hire a helper or send someone in their place.
- They can make a profit or take a loss on the job.
- They have a business presence: their own business name, insurance, invoices, business account, ads.
Signs they're an employee
- You decide how, when and where the work is done. Having that right is enough — even if you rarely use it.
- You set the hours and pay by the hour, day or week.
- They work for you steadily and only for you.
- You supply the bigger tools and equipment.
- They can't send someone else in their place, and you can let them go.
Can someone be both?
Not under the same contract. But the same person can be your employee and, separately, run their own business for other clients — the CRA's own example is a drywaller who works for one company and paints on their own for others.
What changes for you
- Employee: you deduct CPP, EI and income tax, send them to the CRA, and give a T4 slip.
- Subcontractor: no deductions; if construction is your main business, you report what you paid them on a T5018 slip. T5018: who files and when →
Not sure? Ask the CRA
Either of you can ask the CRA for a ruling on whether the work is employment (a CPP/EI ruling). It's free and settles the question.
Track hours and payments either way
In CrewHub everyone on the crew clocks in the same way, and you mark payments as paid. The Excel file gives your bookkeeper hours, amounts and payment dates by person — whether that person gets a T4 or a T5018. CrewHub doesn't deduct CPP, EI or tax; that stays with you or your bookkeeper.