Contractor vs employee calculator
Compare the cost of engaging someone as a contractor versus an employee through an EOR, with the country's misclassification notes.
| Option | Estimated annual cost | What you get |
|---|---|---|
| Contractor | $69,588 | Cheapest on paper. No statutory benefits; reclassification risk in Canada if the relationship looks like employment. |
| Employee via EOR | $70,188 – $74,988 | Local contract, statutory benefits and payroll compliance handled by the EOR. |
Canada contractor risk: Misclassification risk exists (Remote). CRA and courts apply the control, tools, chance of profit/risk of loss and integration tests. Penalties include back CPP/EI, tax and interest (details not verified). Not legal advice.
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Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked “unverified” needs checking with the provider or a local adviser before you rely on it.