RC4110-08E

RC4110-08E - Employee or Self-Employed RC4110(E Rev 08 Is...

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Employee or Self-Employed? RC4110(E) Rev. 08
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www.cra.gc.ca 2 Use this guide if you are: a payer; or a worker. It will help you understand how to determine a worker’s employment status. If you have a visual impairment, you can get our publications in braille, large print, etext (CD or diskette), or MP3. For more information, visit our Web site at www.cra.gc.ca/alternate or call 1-800-959-2221 . La version française de ce guide est intitulé Employé ou travailleur indépendant. Is this guide for you?
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www.cra.gc.ca 3 Employee or self-employed workers? It is important to determine whether a worker is an employee or a self-employed individual . Employment status directly affects a person’s entitlement to Employment Insurance (EI) benefits. It can also have an impact on how a worker is treated under other legislations such as the Canada Pension Plan , the Employment Insurance Act , and the Income Tax Act . The facts of the relationship as a whole will determine employment status. If the worker is an employee , (employer-employee relationship) the payer is considered an employer. Employers are responsible for deducting Canada Pension Plan (CPP) contributions, Employment Insurance premiums, and income tax from remuneration or other amounts they pay to their employees. They have to remit these deductions along with their share of CPP contributions and EI premiums. An employer who fails to deduct the required CPP contributions and EI premiums has to pay both the employer’s share and the employee’s share of any contributions and premiums owing, plus penalties and interest. For more information, visit our Web site at www.cra.gc.ca/payroll . Note Non-arm’s length relationship – If an employee is not dealing at arm’s length with the employer, it is possible that their employment is not insurable under the Employment Insurance Act. For more information, read the interpretation article on this subject at www.cra.gc.ca/cppeiexplained . If the worker is a self-employed individual (business relationship), he or she is considered to have a business. For more information, visit our Web site at www.cra.gc.ca/business . My Business Account (MyBA) My Business Account provides business owners (including partners, directors, and officers) secure, online access to a growing range of payroll, GST/HST, corporation income, and other account information. If you have a payroll account with CRA, you can view your payroll account balance and transactions, view the status of your T4 return, provide a nil remittance, request a CPP/EI ruling, register a formal dispute (Appeal) and view your payroll remitting requirements. You can also authorize an employee or representative to have online access to your information. For more information, visit our Web site at www.cra.gc.ca/mybusinessaccount . Requesting a ruling
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RC4110-08E - Employee or Self-Employed RC4110(E Rev 08 Is...

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