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.