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John Loncaric owns and operates a small business in Ottawa, Ontario providing high tech parts and solutions for technology firms called John's Tech Solutions (

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John Loncaric owns and operates a small business in Ottawa, Ontario providing high tech parts
and solutions for technology firms called John's Tech Solutions (JTS). JTS provides highly
customized solutions for its clients and the typical operations are on a per contract basis. For this
reason, John is the only employee of JTS and instead only hires contractors based on the needs
of the project. John has some concerns as he had read an article online about contractors being
classified as employees of businesses in some cases. He has come to you with the following facts
to help determine if his contractors are employed by JTS or if they are self-employed. Below are
the facts John has brought to you:
Contractors of JTS can choose what contracts they accept or do not accept.
The rate is not predetermined and is based on the needs of each project, which is then
negotiated between John and the contractor.
Given the highly skilled nature of the work required, subcontracting is explicitly not allowed
in all contracts signed with JTS.
JTS acts more as a project management service. The tools and equipment required to perform
each project are owned and utilized by the contractor, not by JTS when performing each
project.
The contractors have significant input into the timing and deadlines for deliverables and work
directly with JTS and the client to plan this.
If a contractor goes above their costs for the contract, they are not able to bill JTS further
above the contract price.
Required:
Perform an analysis of the above information to determine if John's Technology Service
contractors are employees of the business or self-employed.
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