Working from home doesn’t necessarily mean you’re self employed. It’s increasingly common for companies to hire remote workers, or to allow current employees the flexibility to work outside of a specific office space or regular schedule. While the terms seem similar, the difference in definition between a self-employed individual and a home-based employee means a lot at tax time.
Because it’s relevant for financial issues ranging from record keeping, to deductions, to eligibility for employment insurance and pensions, knowing your employment status is key in managing your money throughout the course of the fiscal year. Here are some key things to consider if you’re uncertain whether you’re an employee or an independent contractor.