Employee Employer Relationship

Employee employer relationship

Employee Employer RelationshipBy Kathie ShiPreviewThe difference between employee and self employedThe importance of determining employee-employer relationshipsCanada Revenue Agencys four criteria ControlOwnership of toolsChance of profit and risk of lossIntegrationEmployee VS. Self-EmployedEmployeeSelf-EmployedEmployee-employer relationshipBusiness relationshipPaid through payroll department/ servicePaid through accounts payable departmentStatutory deductions withheld from their payNo deductionsFour Criteria1. Control2. Ownership of tools3. Chance of profit and risk of loss4. Integration1. Control - employee

Interviewed

Work method is determined by the employer

Control - employeeCould be laid off or dismissed by the employer

Has to try to complete all the work that is asked of himPerform work in their own mannerNot interviewedControl Self-Employed

Control Self-EmployedWork more day and hours??No WayAble to choose their work2. Ownership of toolsEmployeeSelf-employedEmployer supplies and covers the cost of the equipments and tools for employeesSelf-employed worker supplies and covers cost of their own tools and equipments

3. Chance of Profit And Risk of LostEmployeeSelf-employedDoes not assume any financial riskMay make profit or incur loss

4. IntegrationEmployeeSelf-employedIntegrates his/her activities to the commercial activities of the payerintegrates the payers activities to his/her own commercial activitiesSummaryImportance of determining employee-employer relationshipCRAs 4 criteria Reference: www.rev.gov.on.ca/en/bulletins/eht/0196.html www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-08e.pdfWho Has Questions?13