Is that contractor really an employee?  What’s the difference from a tax perspective?  Generally speaking if you are truly independent it is more than just a piece of paper claiming it to be.
If you are truly independent, running your own business, you can deduct legitimate expenses, that is, those expense must be reasonably connected to the earning of income, unless they are specifically prohibited under the Income Tax Act.  You will also be responsible for your own deductions.  If you work from your home, you may explore deducting a portion of your home and of course you have an extension on your T1 tax filing deadline.
Employees generally have tax withheld at the source and generally cannot deduct expenses.
However, there are instances where CRA may come along and say that a contractor is an employee, especially if there is only one person paying the contractor.  An independent contractor truly must be independent and there is no one criteria to make that so.  However, signs that you are a proprietor, and truly in your own business, include whether you control your work environment or not.  Do you say how a job will be completed or does the person hiring you?  Do you decide on your hours or does someone else?  Do you supply your own equipment and tools or does someone else?  Do you have assets you use in the business or do you rely totally on those of the person paying you?  Are you an integral part of the day to day operations of the company or is your service ancillary to its general operations?  Do you bear the risk of loss?  Do you have the opportunity to set your own rate and make a profit?  If you make a mistake in your work are you required to fix it on your own time?  Do you carry your own WCB benefits? Do you have one client or several?  Do you keep a separate set of books for yourself?  Do you issue invoices yourself or does the company give you one to sign?
None of these are exclusive, but they are a good starting point to decide if you are truly independent in your operations.