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Employee Employer Relationship. By Kathie Shi. Preview. The difference between employee and self employed The importance of determining employee-employer relationships Canada Revenue Agency’s four criteria Control Ownership of tools Chance of profit and risk of loss Integration. - PowerPoint PPT Presentation
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EMPLOYEE EMPLOYER RELATIONSHIPBy Kathie Shi
PREVIEW The difference between employee and self
employed The importance of determining employee-
employer relationshipsCanada Revenue Agency’s four criteria 1. Control2. Ownership of tools3. Chance of profit and risk of loss4. Integration
EMPLOYEE VS. SELF-EMPLOYED
Employee Self-EmployedEmployee-employer relationship
Business relationship
Paid through payroll department/ service
Paid through accounts payable department
Statutory deductions withheld from their pay
No deductions
FOUR CRITERIA
1. Control2. Ownership of tools3. Chance of profit and risk of loss4. Integration
1. CONTROL - EMPLOYEE
Interviewed Work method is determined by the employer
CONTROL - EMPLOYEE
Could be laid off or dismissed by the employer
Has to try to complete all the work that is asked of him
Perform work in their own manner
Not interviewed
CONTROL – SELF-EMPLOYED
CONTROL – SELF-EMPLOYED
Work more day and hours??
No Way
Able to choose their work
2. OWNERSHIP OF TOOLSEmployee Self-employed
Employer supplies and covers the cost of the equipments and tools for employees
Self-employed worker supplies and covers cost of their own tools and equipments
3. CHANCE OF PROFIT AND RISK OF LOST
Employee Self-employedDoes not assume any financial risk
May make profit or incur loss
4. INTEGRATIONEmployee Self-employed
Integrates his/her activities to the commercial activities of the payer
integrates the payer’s activities to his/her own commercial activities
SUMMARY Importance of determining employee-
employer relationship CRA’s 4 criteria Reference:
www.rev.gov.on.ca/en/bulletins/eht/0196.html
www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-08e.pdf
WHO HAS QUESTIONS?