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DELIVERING YOUR PIECE OF THE PIE

HOW DOES THE CANADA REVENUE AGENCY, EMPLOYMENT INSURANCE AND THE CANADA PENSION PLAN FIT INTO THE MIX?

Canada Revenue Agency through two of their branches, EMPLOYMENT INSURANCE and the CANADA PENTION PLAN have a large interest in the question ‘Employee or Independent Contractor?”

In fact, they have published a pamphlet titled just that. “Employee or Independent Contractor?” and have an office established to investigate employers who are treating workers as independent contractors when they should be employees. The pamphlet (RC4110(E) 1219  is available on the Internet at http://www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-06e.pdf . Usually there is a copy available at your local EI office.

E.I. and C.P.P lose a lot of money if a person, who should be deemed an employee, is registered by his employer as an independent contractor. The employer pays 2/3rds of the E.I. and CPP contributions. If you are found to be an employee after the CRA investigates your working status, the employer will be penalized up to four years of EI and CPP contributions, and that money will go to your credit. You will not be penalized.