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The 80/20 Rule

A worker cannot work more than 80% of their time for one business if they want to be considered a contractor, right?

Wrong. Certainty in Contracting.

The 80% rule, or 80/20 rule as it is sometimes called, relates to personal services income (PSI) and how a contractor:

  •  Reports their income in their own tax return determines if they can claim some business-like deductions.
  •  It is not a factor a business considers when they determine whether a worker is an employee or contractor.

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