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If you have incorporated your business to provide services, you may be considered to be operating a PHSP.
Generally speaking, a PHSP is one in which the person performing the work would be considered an employee of the payer if the corporation did not exist. This person is sometimes referred to as an “incorporated employee”.
The tax obligations of EPSPs are different from those of other companies.
For example, they are not entitled to certain deductions, such as the small business deduction.