Contracts/letter of agreement
Rather than working as an employee with a company, some people will “contract” their services to a company. In this case, an individual or the individual’s own company will sign a contract to do a certain job for a set amount of money.The company hiring the contracted worker/company will draw up a contract or letter of agreement that will describe the work to be done, the period of time the work will take, and the amount that will be paid. No deductions are made from the payment. No benefits are provided. It is a straight fee for service.This income must be reported to the tax department.