There are several key differences between hiring someone as a subcontractor versus an employee in Canada. Taxation: Subcontractors are considered self-employed and are responsible for paying their own taxes, while employees are considered employees of the company and taxes are withheld by the employer. Benefits: Subcontractors are not entitled to the same benefits as employees, such as health insurance, pension plans, and vacation pay. Liability: The company hiring a subcontractor is not liable for the subcontractor's actions or mistakes, while an employee's actions and mistakes are the responsibility of the company. Control: The company hiring a subcontractor has less control over the work performed…

Whether to hire someone as a subcontractor or employee depends on the nature of the work and the level of control you wish to have over the work performed. If you need someone to perform a specific task and don't need to control how the work is done, a subcontractor may be the better choice. If you need someone to work regular hours and be subject to your direction and control, an employee may be the better choice. Contact us to ensure that you are in compliance with your local laws.