Subject: Self employed and employing an other person
Expert: taxman at centa.com
Date: Wednesday August 24, 2005
Time: 05:33 AM -0700
QUESTION:
Dear David, I am a self employed person. I am planning to employ a person to
look after my office work and other documents and planning to pay him
between 1000 or 1100 per month. Assume that i am lucky enough to get a
person to work for me then should I detuct the EI and CPP from the salary.
Do I have any obligations as an employer. Can I pay him by cash or use a
bank check? I heard that if the annual salary is less than 14000 then either
the employer or employee will not pay any EI or CPP. Is it true? Please
help.
======================================
david ingram replies:
If the person is not a professional (i.e. a CA, CMA, CGA), or clearly self
employed with his own practice and other clients on a regular basis, and
they work in your premises using your equipment doing tasks that you assign
on a time schedule you dictate, you MUST register as an employer and deduct
EI and Income Tax and CPP according to the tables available from the CRA
when you register.
The $14,000 is only a rumour that I have never heard of.
If the person is already collecting CPP, you do not need to make CPP
deductions.
I will not be there this coming Sunday, but usually
Answers to this and other similar questions can be obtained free on Air
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