Colorado Jury Instruction - 1.9.4.1 Employee Self-Employed Independent Contractor
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FAQ
An independent contractor is not considered an employee for Form I-9 purposes and does not need to complete Form I-9.
As an independent contractor, you're the boss of your own taxes. This means there's no employer to withhold taxes for you. The T2125 form. You'll want to become good friends with the T2125 tax form: It's the form you'll use to report your business income and expenses.
Form I-9 rules govern whether an individual is considered self-employed with respect to using E-Verify. Generally, self-employed individuals are not required to complete Forms I-9 on themselves; therefore, they are not required to use E-Verify.
As mandated by IRCA, an individual or entity (client) is NOT required to obtain Form I-9, or otherwise inquire about immigration status from independent contractors or sporadic domestic workers.
There are pros and cons to each structure, but most independent contractors choose the sole proprietorship model, as it is fairly simple to set up and operate. If you choose this structure, you'll need to register your business with your local provincial/territorial government, as opposed to the federal government.
Generally speaking, the difference between independent contractors and employees in California is whether or not the entity paying for services has the right to control or direct the manner and means of work (tending to signify an employment relationship.)
In some circumstances, a foreign entity can hire a Canadian as an independent contractor. However, this means that the foreign entity will not be ?hiring? an employee, but rather a service provider who will be charging taxes on the services. Misclassification is the main risk when engaging an independent contractor.
Contracting of service providers The foreign employee requires a work permit and must either get a Labour Market Impact Assessment (LMIA) or meet the requirements of a LMIA-exempt work permit category.