On April 13, 2016, CRA added a discussion of whether PDFs are employees, outlining numerous relevant factors differentiating employment from IC status, including:
- Whether the payer approves and monitors work schedules (indicates employment).
- Whether the payer determines (indicates employment), rather than advising and guiding (indicates IC), the manner in which research or projects will be conducted.
- Whether the payer has the final word on research and other tasks (indicates employment) or whether this is decided jointly or by the PDF (indicates IC).
CRA also sets out a number of factors they consider neutral or inconclusive, including:
- Autonomy of the PDF resulting from the nature of the work.
- Tools and equipment provided by a third party.
- Any link between the PDF’s status as a student of the payer.
For further information see VTN Monthly Tax Update Seminar, Issue No. 419