Monday, July 27, 2009

Is a company required to pay into CPP and EI for a sub contractor who has been with them more than 4 years ?

The area is in the GTA in Ontario Canada

Is a company required to pay into CPP and EI for a sub contractor who has been with them more than 4 years ?
If they are a sub contractor then no. However, depending on what they do and how they do it, revenue Canada may argue that the person is an employee. If that is the case yes but... you likely don't want to push for that as there are a lot of great tax benefits to being self employed.
Reply:Sub contractors are self employed, and therefore the hiring company is not obliged to pay CPP or EI for them.
Reply:No. As a subcontractor. they are either self-employed themselves, or work for a contracting firm. Either way, they are responsible for their own employee tax. They are not your employee, so you are not responsible for their taxes.

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