Paying Yourself and Hiring Contract Employees

If your business is incorporated and you are drawing a salary, then you must make all the appropriate deductions, except UI payments, and keep all the appropriate records just as you would for any other employee.

If you hire people on contract, you are not responsible for collecting payroll deductions. However, Revenue Canada has strict guidelines for who qualifies as an employee.

For more information on paying yourself and hiring contract employees, refer to ED&T's Starting a Small Business.