compliance

docs/source/compliance.rst

@@ -676,10 +676,14 @@ The worker is a self-employed individual when:
 Responsibility for Investment and Management
 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
 
-If the worker is required to make an investment in order to provide the services, this is
-evidence that a business relationship may exist. Another factor indicating the existence of a
-contract for service is if the worker is responsible for making the business decisions that
-affect their profits or losses.
+When assessing whether a business relationship exists, one important indicator is the worker's financial investment in the 
+services they provide. If an individual is required to invest in equipment, materials, or other resources to complete the 
+work, this suggests the presence of a contract for service rather than an employment relationship.
+
+Another key factor is decision-making authority related to financial outcomes. When the worker independently makes business 
+decisions that influence their profit or loss—such as pricing, project selection, or service delivery methods—it further 
+supports the classification of a self-employed individual operating under a business arrangement. These characteristics 
+reflect the autonomy and financial risk typically associated with self-employment.
 
 The worker is an employee when:
 
@@ -693,23 +697,11 @@ The worker is a self-employed individual when:
 Opportunity for Profit
 ~~~~~~~~~~~~~~~~~~~~~~~~~
 
-A business relationship likely exists where the worker can realize a profit or incur a loss as
-this indicates the worker controls the business aspects of the services rendered. Selfemployed individuals have the ability to accept contracts as they wish. They can negotiate
-the rate for their work and can accept more than one contract at the same time. In order to
-carry out the terms and conditions of their contract, they often incur expenses which they
-must manage to increase their profit.
+A business relationship is often indicated when a worker has the ability to realize a profit or incur a loss, reflecting their control over the financial and operational aspects of the services they provide. Self-employed individuals typically negotiate their own rates, choose which contracts to accept, and may take on multiple contracts simultaneously. To fulfill contractual obligations, they often incur and manage expenses, which directly influence their potential for profit.
 
-Employees normally do not have a chance of profit or a risk of loss. While some employees
-who are paid by commission have an opportunity to increase their earnings based on their
-sales, this is not a profit as it is not an excess of income over expenses. As well, employees
-generally do not share in profits or suffer losses incurred by the business they work for.
+In contrast, employees generally do not bear financial risk or benefit from profit. While commission-based employees may increase their earnings through performance, this does not represent profit in the traditional sense, as it does not reflect income earned beyond expenses. Moreover, employees do not typically share in a business’s profits or losses.
 
-The CRA will look at the degree to which the worker can control their revenues and
-expenses. They will also look at the method of payment. Employees are typically guaranteed
-their earnings according to an established rate (hourly, daily, weekly, annual) and pay
-frequency. While self-employed individuals may be paid on an hourly basis, if they are paid
-a flat rate for the work performed, it generally indicates a business relationship, especially if
-they incur expenses while performing the services.
+When assessing worker classification, the Canada Revenue Agency (CRA) considers the extent to which the individual controls their revenue and expenses. Another key factor is the method of payment: employees are usually compensated at a fixed rate based on a consistent pay schedule (e.g., hourly, weekly, or annually). Self-employed individuals, however, are often paid a flat rate for a specific job, especially when they absorb related costs—an arrangement that commonly signals a business relationship.
 
 The worker is an employee when: