Misclassification of workers an expensive mistake

Consequences of failure to properly classify a worker are serious and can include the imposition of fines
By Cédric Lamarche
|Canadian Payroll Reporter|Last Updated: 03/08/2012

Organizations often look to reduce their costs, especially in difficult economic times. 

A cost cutting measure that is being used more frequently is engaging workers on contract (independent contractors) rather than hiring employees.

Independent contractors come with fewer legal obligations than employees.  For example, the remittance of statutory payroll taxes and deductions that apply to employee wages are not triggered for workers classified as independent contractors.