Employee or self-employed worker?

A look at recent court cases provides some clarification
By Sheila Brawn
|Canadian Payroll Reporter|Last Updated: 10/01/2015

Are all the workers in your organization correctly classified as employees or self-employed individuals? Properly determining a worker’s employment status is an essential part of complying with payroll-related laws.

If the workers are employees, the Canada Revenue Agency (CRA) requires payroll to take deductions for Canada Pension Plan (CPP), employment insurance (EI) and income tax from amounts paid to the employees and remit the deductions, along with the employer’s share for CPP and EI contributions, to the CRA. Employers with Quebec payrolls have similar responsibilities for making Quebec-specific remittances to Revenu Québec.

If an employer does not deduct the required CPP contributions or EI premiums, the CRA will require it to pay both the employer’s and the employee’s share of CPP contributions and EI premiums owing, as well as penalties and interest.