What are the differences between hiring someone as a subcontractor versus an employee in Canada?

There are several key differences between hiring someone as a subcontractor versus an employee in Canada.

1. 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.
2. Benefits: Subcontractors are not entitled to the same benefits as employees, such as health insurance, pension plans, and vacation pay.
3. 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.
4. Control: The company hiring a subcontractor has less control over the work performed and how it is done, while an employee is subject to the company's direction and control.
5. Labor Laws: Subcontractors are not covered under the same labor laws as employees, such as minimum wage laws and overtime pay.
6. Record Keeping: Employers are required to keep accurate records of all employee-related information, such as taxes, benefits, and labor laws. Subcontractors are responsible for their own record keeping.