Question 1

How does CRA determine if someone is a subcontractor vs employee?

Accepted Answer

CRA uses the Wiebe Door factors: level of control, ownership of tools, chance of profit/risk of loss, and degree of integration into the business. Misclassification can result in penalties.

Question 2

Do subcontractors have lien rights in Canada?

Accepted Answer

Yes, subcontractors have direct lien rights against the property under provincial Construction Lien Acts, even though they have no direct contract with the property owner.

Question 3

Is WSIB/WCB clearance required for subcontractors?

Accepted Answer

Yes, general contractors should obtain clearance certificates. If a subcontractor doesn't have coverage, the general contractor may be assessed for the premiums.

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