Company policy?
 

Hi, does any body worked as a contractor for the same company more than a year? Did you have problems extending your contract after that period? The company I do contract work for is telling me that they are not allowed to work with the same contractors for more than a year. It sounds really strange to me? Why would that be a company policy?

EHT test employee or emplyer
 

This happens all the time; the company is probably trying to avoid the risk of having you reclassified by revcan as an employee. Take a look at www.payprodirect.com they are set up to work with this kind of thing, let me know if you want an introduction. I know a couple of the large finical companies down town are saying the same thing about contractors that look more like employees.

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As far as I know, tax wise, you have to work for more than one client per fiscal year. Revenue Canada may give you a hard time if your Corporation has only one client.
They may recalculate your tax return.

more than one company and many more tests-
 

They regularly recalculate tax returns and it can end up with you and your client getting in to hot water with RevCan. To have a true contract client relationship you need to be able to prove, you have more than one client (as Simon says) as well as be in control of the service you provide, carry out work for a fee (not simply hourly paid) have the potential to loose money on the project (finical risk) be able to pass the work on to somebody else to carry out (at your discretion) and provide your own tools (be that a hammer or a computer or whatever) and the list goes on. I work with a number of clients and contractors that have been pulled up by RevCan it seems to be happening more and more since the turn of the year.

Last year three of my friends got a "friendly" letter from Revenue Canada. They recalculated their tax returns for the past 3 years… Not a nice surprise. All they are working on contract. I think Philip and Simon have a point!