What is a contract worker?

An independent contractor is different from an employee in that they do not receive the same protections under Alberta employment law because they are considered self-employed. Contractors do not have deductions on their pay and are responsible for paying taxes, and making CPP and EI contributions to the government. Contractors can claim business expenses as deductions on their income tax returns. 

Sometimes, actual employees are wrongly categorized as independent contractors. You may be considered an employee if: you are not free to work with other organizations, if your work is supervised, if you are subject to discipline at work and/or if you are paid at regular intervals as opposed to a lump sum. If you are unsure if you are an employee or an independent contractor, the Workers’ Resource Centre can help.

An independent contractor is different from an employee in that they do not receive the same protections under Alberta employment law because they are considered self-employed. Contractors do not have deductions on their pay and are responsible for paying taxes, and making CPP and EI contributions to the government. Contractors can claim business expenses as deductions on their income tax returns. 

Sometimes, actual employees are wrongly categorized as independent contractors. You may be considered an employee if: you are not free to work with other organizations, if your work is supervised, if you are subject to discipline at work and/or if you are paid at regular intervals as opposed to a lump sum. If you are unsure if you are an employee or an independent contractor, the Workers’ Resource Centre can help.