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Information for

Service Types

The first step in determining the status of a worker is to consult the Service Types list below.  If this list indicates that the work is employment in nature, the individual worker must be engaged as an employee and the University’s regular hiring practices followed.

If the suggested conclusion does not appear in one of the sections below and the worker is seeking to be engaged as an independent contractor, or a corporation is seeking to be engaged to perform the services, an Independent Contractor (ICON) Questionnaire must be completed for assessment.  Two weeks lead time must be provided for the ICON team to make an assessment.  Further notice may be necessary to complete the hiring processes (if the worker is an employee) or for procurement practices to be followed (if the individual worker is a contractor or a corporation or partnership is going to be engaged).

Service Types

Other points of note:

  • A corporation may only be engaged to provide services if the ICON Questionnaire determines that it is appropriate to do so. 
  • If the ICON Questionnaire determines that it would be inappropriate to engage a corporation because the substance of the arrangement is that of an employment arrangement between the worker and the University, an employment contract must be entered into between the worker as an individual and the University.
  • The fact that a worker is a sole-proprietor or a partner in a partnership does not in itself prove that an independent contractor relationship exists, regardless of whether the sole-proprietor or partnership has a business number and/or a Goods and Services Tax (GST)/Harmonized Sales Tax (HST) number. The question can only be settled by examining the whole of the various elements which constitute the relationship between the parties.
  • Independent contractors should seek independent tax advice.

Note: Payment for products or goods is not considered employment income and therefore must be processed as a payment to a business. Arrangements including both services and products will be assessed on a case by case basis.

In the case of any work performed by a non-resident of Canada or if work is to be performed outside of Canada, please consult Human Resources/Payroll (for employment relationships) or icon@uwaterloo.ca (for independent contractor relationships) for advice on unique compliance scenarios applicable to such workers, including withholding tax requirements.