[VPM] Follow-up: RFC: paying Canadians with US dollars

[Malcolm Dew-Jones]

On Wed, 9 Feb 2005, Darren Duncan wrote:

>
> - Wherever possible, all people that work for me or provide goods or
> services will do so as independent contractors and not employees.


Just be sure that Revenue Canada agrees they are contractors.  There are
various criteria they use to determine if they are real contractors and
not simply employees (in revenue canada's opinion) for whom you are
avoiding paying benefits etc.

Large companies typically require that contractors are themselves
incorporated as they feel this provides the necessary arms length
arrangement.

That last paragraph is certainly not a legal requirement - in theory.

Anyway, while speaking to accountants make sure you get the low down on
the above issue.