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Operations

Can I write off Subcontractors in Canada?

YES

Explanation

Payments to freelancers and independent contractors are deductible. It is crucial to ensure they are truly independent and not 'disguised employees,' which could make you liable for CPP/EI.

💡 Pro Tip

If you pay a Canadian subcontractor more than $500 in a year for services, you are technically required to issue them a T4A slip.

Official Source: Line 8860 – Professional fees (Subcontractors)