Who Is An Employee?

When it comes to tax preparation, it’s important to clearly understand the definition of employed vs. self-employed.

For tax purposes, an employee is defined as someone in a “master-servant relationship” with a person who

• controls how and where you work;
• supplies the tools you need to do the work; and
• takes the risk of delivering and getting paid for the work.

Employees can be paid in cash, by way of salary, wages, bonuses, vacation pay or director’s fees. They may also enjoy receiving taxable benefits. At tax filing time, these various types of remuneration are all included in Box 14 of the T4 slip.