Employee vs. Contractor Bookkeeper

Employee

• Must train new employee

• Must be on Payroll

• Additional Payment for Employee Overtime

• Additional CPP Payment - Employer Portion

• Additional EI Payment - Employer Portion

• Must remit payroll deductions to CRA on time or there will be penalties

• Must prepare Record of Employment (ROE) when when an employee stops working and has an interruption of earnings

• Must prepare T4 for employee

• Bookkeeping will not be done when employee has time-off or absences

• Federal Labour Standards

• Ontario’s Employment Standards Act

• CRA’s Employer Responsibilities

Contractor Bookkeeper

• Paid via Invoice

• Monthly bookkeeping expenses are tax deductions

• No additional payroll tax remittance to CRA

• No time-off or absences, your bookkeeping will always be done

• No additional headache and paperwork like a T4 or ROE to prepare