In Canada, engaging independent contractors directly can expose your business to serious CRA liability.

Even with a signed contract, if the working relationship looks like employment, the CRA may reclassify them as employees. That means you could be on the hook for:

1. Back taxes
2. CPP & EI contributions
3. Penalties + interest

So how do you stay compliant and flexible? Use a payroll outsourcer!!!

Here’s why: They absorb much of the liability risk!!

* They become the contractor’s legal employer or payer
* They manage remittances & CRA compliance
* They create arms-length separation between your business and the worker

If you’re scaling a flexible workforce or using long-term contractors, don’t risk a CRA audit by going direct.

A payroll partner helps keep you compliant and protected — while you stay focused on growing your business. ThreeLinx Search we can help! Let us take the burden off your hands!