Personal Services Business Risk Calculator

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HelpPSB Risk Calculator — How to Use

This tool gives a quick “risk indicator” for whether a contract looks like a
Personal Services Business (PSB) relationship under CRA factors. It’s designed as a screening tool and
documentation support (PDF report).

Focus: employee vs contractor factors
Output: High / Medium / Low risk
Export: PDF report

Step 1 — Enter the header info

Client Name / Project (used in the PDF file name)
Date (auto-fills to today; change if needed)

Step 2 — Answer all 10 questions

Pick the statement that best matches the real working relationship
Be consistent with the contract and day-to-day reality
When unsure, choose the more conservative (employee-like) option

What the questions measure

Control (how/when/where work is done)
Substitution (right to send a substitute / hire help)
Tools & expenses (who supplies equipment and pays costs)
Financial risk (fixed-price work, rework at your cost)
Integration (treated like staff vs external vendor)
Multiple clients (business presence vs dependency)

Interpreting the score

High risk: strong employee-like indicators
Medium risk: mixed indicators (“grey area”)
Low / Very low: stronger independent contractor indicators

Tip: Use the result as a trigger to review the contract terms and working practices.

Buttons

Calculate Risk shows your result box (High / Medium / Low) and recommendation text.
Download PDF Report captures the questions and result into a clean PDF for your files.

Important: The PSB determination is fact-specific and CRA decides case-by-case.
Use this tool as a screening checklist and documentation aid—not as legal or tax advice.

PSB Risk Calculator

Client Name / Project:

Date:

Pre-requisites: This calculator assumes you own more than 10% of the shares of your corporation and have fewer than 5 full-time employees.

1. Who determines HOW the work is completed?

The Client provides specific instructions and supervises closely.
I determine the methods, provided the final result meets standards.
Collaborative; I have autonomy but follow specific client protocols.

2. Who determines WHEN and WHERE the work is done?

I must work at the Client’s premises during set business hours.
I set my own schedule and location (remote/off-site).
Hybrid; mandatory meetings but otherwise flexible.

3. Can your corporation hire someone else to do the work?

No. The contract requires ME personally to perform services.
Yes, but only with the Client’s written approval.
Yes. I have the right to send a substitute without prior approval.

4. Who provides the primary equipment?

The Client provides everything.
My corporation provides everything.
I use my own equipment, but Client provides server/VPN access.

5. Who pays for home office or admin costs?

The Client reimburses me for expenses.
My corporation absorbs these costs.

6. How is the corporation paid?

Hourly, daily, or weekly rate (Time & Materials).
Fixed price per project or milestone.
Commission or performance-based.

7. What happens if work needs to be redone?

I fix it during regular billed hours (Client pays).
My corporation fixes it at its own expense (unpaid).

8. Does the corporation have other clients?

No, 100% of income is from this Client.
Yes, multiple active clients.
Not currently, but actively marketing for others.

9. Are you integrated into the Client’s organization?

Yes (Company email, org chart, staff meetings).
No (External vendor status only).

10. Did you provide services to this Client before incorporating?

Yes, I was a sole proprietor/employee for them immediately prior.
No, this is a new business relationship.
Yes, but there was a significant gap or change in role.

Disclaimer: This calculator is for informational purposes only and does not constitute legal or tax advice.
PSB status is complex and determined by CRA on a case-by-case basis.