In 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59, the Supreme Court of Canada explained at paragraph 47 that the key issue is whether the individual performing the services is doing so as an independent businessperson. To determine this, one must consider the extent of control exercised by the employer over the worker’s activities, as well as other relevant factors. These include whether the worker supplies their own equipment, hires their own assistants, assumes financial risk, bears responsibility for investment and management, and has the potential to earn a profit from the work performed.

No single factor is conclusive on its own. If there is uncertainty about whether an employer-employee relationship exists, a ruling can be requested from the Canada Revenue Agency (CRA).