compliance

docs/source/compliance.rst

@@ -759,4 +759,24 @@ Please consider the following scenario.
     Write a memo to your supervisor, who is the Chief Financial Officer of the company, to
     explain why your role must coordinate with the Accounts Payable Department to ensure
     that these payments are being handled correctly. Please prepare your answer in a separate
-    document. 
+    document. 
+
+    *At the last weekly Finance meeting, Tom and I discussed the increase in the number of contractor invoices being 
+    processed through accounts payable (AP). We have some concerns as to whether these individuals would be considered truly 
+    selfemployed by the Canada Revenue Agency (CRA), or whether the CRA would determine them to be employees.*
+
+    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
+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.
+
+    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
+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.
+
+    I think that Payroll must coordinate with the Accounts Payable Department to
+ensure that these payments are being handled correctly.
+
+    Tom and I would be pleased to meet with you to ensure the company is in
+compliance with all legislative requirements. Would you be available next Friday
+morning at 10:00 to discuss?