Employee or self-employed workers?
It is important to determine whether a worker is an
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
Employment Insurance Act
, and the
Income Tax Act
The facts of the relationship as a whole will determine
If the worker is an
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
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
If the worker is a
relationship), he or she is considered to have a business.
For more information, visit our Web site at
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
Requesting a ruling