Sunday, December 4, 2011

What am I laible for if did not remit taxes and deductions for an employee in Canada?

My friend has a contractor who works on and off in her home for child care. The government is now trying to stipulate that she should have been an employee and not a contractor and they should have deducted EI, CPP and taxes. If they rule that she is an employee and not a contractor what are they liable to pay for , just the employer portions of EI ? or other stuff as well?


Please serious answers relevant to Canada only.|||Depends on the province. In most provinces you would be assessed for the whole amount owning for EI, and CPP/QPP including interest charged from the date the payments were owed. It would be up to the employer to deduct the amounts from the employee, even if the employee no longer works from them, yes it does not sound fair but it's the law. I think that it's because it's easier for the government to collect from the business rather than from the individual. There would also be a fine and interest charges for missing Tax deductions and remittances.





In Quebec, you would also be responsible for QHIP (Quebec Health Insurance Fund) and the QPIP (Parental Insurance Plan).





If this is a one "employee" employer relationship, and this is the first offence you many be able to get the government to drop the fines and possible even limit the amount of interest to be charged.





Good Luck|||There are the employer's portion of CPP %26amp; EI that need to be remitted. In addition, there may be interest charges on the taxes that were remitted.

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