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PSB risk review

A corporation does not automatically protect an incorporated IT professional from PSB risk

CRA looks at the real working arrangement: client concentration, control, tools, substitution rights, financial risk, and whether the contractor is independent in substance. A review is most useful before a long single-client contract renews.

Book a 15-minute introduction Try the risk wizard

Guided PSB risk wizard

Answer the working-arrangement questions and see which facts would deserve attention before a contract renewal, year-end planning, or CRA review.

Screening only, not a PSB determination. Answers stay in your browser and are not submitted.

Step 1 of 8 0 answered
01 Corporate setup

Who performs the services?

Start with the structure CRA would be looking at.

What your result means

The wizard points to the facts a CPA review would examine. It does not turn a fact-heavy PSB question into a yes/no answer.

Lower concern

The selected facts show more independence than employee-like pressure. Keep the support organized, especially contract terms, client mix, tools, and project records.

Review recommended

The facts are mixed. This is where a CPA review separates helpful independence facts from weak spots that would need better documentation.

High-priority review

The arrangement has several employee-like features. Review the facts before renewal, year-end compensation planning, or large dividend decisions.

What the review covers

The goal is not a generic yes/no label. The goal is a documented view of the facts, the weak spots, and the support that should exist if CRA asks questions.

  1. 01

    Contract and client map

    Identify the legal payer, staffing agency, end client, renewal history, payment flow, and whether the corporation depends on one relationship.

  2. 02

    Working-arrangement facts

    Review control, tools, substitution rights, financial risk, integration with the client team, and how the work is actually performed.

  3. 03

    Documentation plan

    Separate facts that support independence from facts that create exposure, then document what should be retained before a CRA question arrives.

What a PSB determination means in practice

The review does not produce a CRA ruling. It produces a documented view of the facts, the risk exposure, and what should be retained before CRA asks questions. The goal is to understand the file clearly before a contract renewal, a large dividend, or year-end planning.

Related guides

Detailed breakdowns of the PSB risk factors, corporate tax consequences, and decisions that follow a review.

Common questions

Q.01 Does having a corporation protect me from PSB classification?
No. The PSB rules apply to corporations, not just sole proprietors. CRA looks through the legal structure to the actual working arrangement. See the PSB risk guide in Resources for how CRA makes that determination.
Q.02 What does a PSB determination actually cost?
PSB designation removes the small business deduction and most standard expense deductions. In Ontario, this shifts the combined corporate rate from roughly 12.2 percent to roughly 26.5 percent, a difference of about 14 percentage points. Only salary paid to the incorporated employee and certain employment-type costs remain deductible.
Q.03 Who is most at risk?
Incorporated contractors on long-tenure, single-client arrangements, particularly federal government contracts in Ottawa placed through staffing agencies. The combination of agency intermediary, single department, individual security clearance, and client-controlled environment stacks several PSB indicators at once.
Q.04 Can the review be done before renewal?
Yes, and that is the best time. A review before contract renewal gives you time to document independence facts, consider contract terms, and make any planning decisions before committing to another year. Doing the review after a CRA query is less useful.
How engagements begin
  1. 01Book a 15-minute introduction call
  2. 02New Client File Review of your current filings and records
  3. 03Fixed-fee proposal based on what the review finds
See the full process →
PSB review

Need a PSB fact review?

Send the contract pattern, client count, renewal history, and whether you work through an agency. Teplov CPA responds within one business day.

Book a 15-minute introduction Send an inquiry