Free tool · Payroll
Employee or contractor? Check the factors the CRA weighs.
Seven questions about how a worker actually works with you, based on the CRA’s guide RC4110. See which way the answers lean — and which factors pull each way — before you decide whether payroll deductions apply.
The questions
Answer for how the work actually happens, not what the contract says.
Your result appears here
Answer all 7 questions to see which way the CRA’s factors lean for this worker.
General information only. This checker follows the factors in the CRA’s guide RC4110 for workers outside Quebec, counts each one equally and runs entirely in your browser — nothing you choose is sent or stored. It is not tax or legal advice and not a CRA ruling; provincial employment standards apply their own tests. Factors checked against RC4110 on September 24, 2026.
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The background
How the CRA tells an employee from a self-employed worker.
A job title or the word “contractor” in an agreement doesn’t settle it. Here is what the CRA’s guide describes, in plain terms.
Two steps, in the CRA’s words
The CRA’s guide RC4110 starts with intent — what you and the worker meant the arrangement to be when it began — and then checks whether the facts of the working relationship support that intent.
The factors it looks at
Control over the work; who provides the tools and equipment; whether the worker can subcontract or hire helpers; the financial risk the worker takes; their investment in and management of a business; and their opportunity for profit. Other relevant facts, like written contracts, count too.
No single answer decides it
The CRA looks at the whole relationship, and how much each factor matters depends on the circumstances. That’s why this checker reports a lean and the factors behind it rather than a verdict.
Why it matters for payroll
An employer deducts CPP contributions, EI premiums and income tax from an employee’s pay, remits them with its own share, and reports the pay on a T4 slip. A self-employed worker handles their own tax and CPP, though the payer may still have reporting to do.
Getting it wrong is expensive
If a worker treated as self-employed turns out to be an employee, the CRA can assess the payer for the deductions that should have been made, with penalties and interest. Reviewing an arrangement early is much cheaper than unwinding it later.
A formal answer is available
Either the worker or the payer can ask the CRA for a ruling on the worker’s status for CPP and EI purposes, for example with form CPT1 or through the CRA’s online services.
Questions
Is this a CRA ruling on my worker’s status?
No. It shows which way your answers lean on the factors the CRA describes in RC4110. Only the CRA can rule on a worker’s status for CPP and EI purposes, and the answer depends on all the facts.
Does a written contract that says “independent contractor” settle it?
Not on its own. The contract is evidence of what you both intended, which is the CRA’s first step, but the CRA then checks whether the way the work actually happens supports that intent.
What happens if we treated an employee as self-employed?
The CRA can assess the payer for CPP contributions, EI premiums and income tax that should have been deducted and remitted, plus penalties and interest. Talk to an accountant as soon as you think an arrangement might be wrong.
How do we get a formal answer?
The worker or the payer can ask the CRA for a CPP/EI ruling on the worker’s status — for example with form CPT1 or through the CRA’s online services. It is worth doing where real amounts are involved.
Does this apply in Quebec?
No. RC4110 describes a different approach for Quebec, based on the Civil Code of Québec. This checker follows the factors used for the rest of Canada.
Is anything I answer sent to Versa?
No. The score is worked out in your browser and nothing is stored. If you’d like to talk it through, start a conversation about payroll.