Employee v. Contractor

Employees earn employment income, work as an integral part of the organization, and take ongoing direction from a supervisor. Churchwardens must make sure that all workers designated as employees are placed on the church payroll and that all appropriate statutory deductions are made.

Independent contractors provide a service, submit an invoice for the service they provide, have the ability to subcontract, have multiple clients, own their own tools or equipment and assume the risk of financial profit or loss. Independent contractors must assure the churchwardens that they have a GST number and adequate insurance coverage.

Be careful not to confuse the two, or the church may be subject to penalties or other statutory obligations. For example, in usual circumstances, a parish secretary is an employee, a furnace repair person is a contractor. An employee can also work on a contract basis for a short, fixed amount of time – this is different from an Independent Contractor.

For more information, please read Employee vs. Contractor.

The Diocese has put together sample Employment Agreements and an Independent Contractor Agreement for you to review and modify as appropriate to your parish setting.