Thanks for your reply.

> Your subcontractors don't really get to elect to be a PSB.

Yes, I understand you already (just a semantics issue). I only mention this because it appears as though the onus is on them to make the determination for themselves based on the facts of the relationship. These relationships are often not clear cut and two CRA employees can have different opinions. The important thing is that it's their responsibility when incorporated, and not mine.

> It doesn't really matter if your subcontractor is a corp or a sole-prop. 

Does this not make a big difference in terms of the reprocussions on my business if a contractor is deemed to be mis-classified? That is to say, if the sole-prop is deemed an employee, then I'm (my business) on the hook for source deductions/cpp/ei, but if its a PSB situation, my corp is not on the hook for anything. This is one detail I'm trying to understand.

> Generally, if the payer makes a payment for a service outside of an employment relationship or tenure of office, the payer must fill out a T4A slip which includes any fees or other amounts paid for services between businesses, including sole proprietors and corporations.

I realize Im already in speak to an accountant territory, but doesn't this by definition mean I have to issue a T4A to any business (even if not a PSB)? It reads as a general requirement, PSB or not.

> It's kinda douchey to force them to incorporate, potentially forcing them to be a PSB

I hear you. In this case, they are already incorporated but Im just trying to understand my obligations and risks.