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compliance
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@@ -765,14 +765,11 @@ Please consider the following scenario.
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processed through accounts payable (AP). We have some concerns as to whether these individuals would be considered truly
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selfemployed by the Canada Revenue Agency (CRA), or whether the CRA would determine them to be employees.*
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If the worker is considered self-employed, then payment, on submission of an
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invoice, will continue to be handled by AP. If, however, the worker is considered an
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employee, they would have to be set up on payroll, as they would be in receipt of
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income from employment, subject to all legislated statutory withholdings.
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*If the worker is considered self-employed, then payment, on submission of an invoice, will continue to be handled by AP. If, however, the worker is considered an
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employee, they would have to be set up on payroll, as they would be in receipt of income from employment, subject to all legislated statutory withholdings.*
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I have attached the CRA’s form Request for a CPP/EI Ruling – Employee or SelfEmployed? – CPT1 for your information. This form can be completed by the
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company and sent with supporting documentation, such as the terms and conditions
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of the contract, for a ruling from the CRA on the individual’s status.
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*I have attached the CRA's form Request for a CPP/EI Ruling - Employee or SelfEmployed? - CPT1 for your information. This form can be completed by the
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company and sent with supporting documentation, such as the terms and conditions of the contract, for a ruling from the CRA on the individual's status.*
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*I think that Payroll must coordinate with the Accounts Payable Department to ensure that these payments are being handled correctly.*
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