Will I be subject to any penalties if I get this wrong?
Yes.
If the payer is audited and the Canada Revenue Agency rules that
“contract workers” are actually employees, the payer will be responsible
for, at minimum:
- Canada
Pension Plan and Employment Insurance employer and employee contributions
for the current year and the previous year
AND
- a
10% penalty on the total assessment
AND
- interest
of approximately prime +1% from the date each of the contributions
were due.
The
employee will be responsible for, at minimum, personal back taxes,
if unpaid.
WARNING:
The contents of these FAQs are intended as general legal information
only.
If
you have a personal problem, please consult a lawyer.
May
2008 |
