How to Figure Out If You’re Self-Employed

People often dream of being their own boss. But knowing if you’re self-employed in Quebec isn’t as simple as you might think.

More than one legal definition for being self-employed

The main difference between being self-employed and being an employee is that you control your own work instead of working under the direction and control of someone else. But different laws have slightly different definitions for being self-employed.

For example, the definition of being self-employed is slightly different for legal issues like

• the tax rules you need to follow,
• the workplace protections you benefit from, and
• your contract with the person giving you work.

Different laws apply to each of these issues. So, the criteria for being self-employed for each of these legal issues are similar but slightly different.

For all these legal issues, it’s your real-life situation that matters for deciding if you’re self-employed, including your relationship with the person giving you work and your working conditions. It’s not just about how you and the person giving you work choose to identify you in your contract or in a government form. Here’s how to figure out if you’re self-employed for tax rules, workplace protections, and your contract with the person giving you work.

How to figure out if you’re self-employed for tax rules and workplace protections

To figure out if you’re self-employed for tax rules or workplace protections, contact these government departments or agencies for help and resources:

Ask a government department or agency to decide

You can ask these government departments or agencies to decide if you’re self-employed based on their criteria. For example, you can ask Revenu Québec to evaluate your situation and then tell you if you’re self-employed for provincial tax. Doing this gives you a clear answer that you can rely on.

Evaluate your situation

Or you can evaluate your situation yourself based on the criteria published by these government departments or agencies. But the government can still investigate your situation and decide if you’re self-employed at any time, even if you don’t ask them to.

If a government department or agency investigates your situation and disagrees with your self-evaluation, you or the person giving you work may owe back payments for tax or mandatory contributions. The government can even charge fines in some cases.

Contest a government department or agency’s decision

You can contest a government department or agency’s decision if you disagree with it. You can also ask a legal professional for help at any time.

How to figure out if you’re self-employed for your contract

To figure out if you’re self-employed for your contract, you need to evaluate your situation and come to an agreement with the person giving you work. If you’re self-employed instead of an employee, your agreement with the person giving you work is a contract for services instead of an employment contract. You have different rights and responsibilities as a service provider than you would have as an employee.

Evaluate your situation

You and the person giving you work must evaluate your situation to decide if you’re self-employed. In general, the most important factor is who controls the work. Being self-employed under a contract for services means being free to accept or refuse jobs, choose your work hours and location, decide how to do the work, and more.

The person giving you work under a contract for services is your client, not your boss. They can usually negotiate the fee, the timeline, and their expectations for your product or service. But they can’t control where, when, or how you work.

In some cases, other factors can also help you decide if your agreement with the person giving you work is a contract for services. Here are some other factors that can point to you being self-employed under a contract for services:

• You provide your own tools.
• You bill your client and can make a profit or a loss.
• You are separate from your client’s main team and your services are different from your client’s main activities.
• You and your client both say that you’re self-employed and both your actions confirm this.

The more factors present, the more likely you’re self-employed under a contract for services.

Get help if you disagree

If you and the person giving you work disagree on whether you’re self-employed or any other part of your contract, you have options for resolving your disagreement. You can send a demand letter, offer to go to mediation, and ask the courts to decide if all else fails. You can also ask a legal professional for help at any time.