MILLAR KREKLEWETZ LLP is a boutique Canadian law firm with lawyers who have significant expertise in the Canada Pension Plan (“CPP”), Employment Insurance (“EI”), source deduction areas, worker’s compensation and employer health tax issues.

The following is a short introduction to our CPP and EI services.

Canada Pension Plan & Employment Insurance

Millar Krekelwetz LLP has significant experience with respect to challenges to employee vs. independent contractor status under Canada ’s various federal and provincial tax legislation. The distinction between an employee vs. and independent contractor has significant consequences not only for CPP and EI deductions but also for income tax source deductions, worker’s compensation issues and employer health tax issues as well as other issues, including providing compensation in lieu of notice for wrongful dismissal. Further, where a person is an independent contractor making taxable supplies, GST/HST and QST will be applicable on their services. In addition, provincial sales tax (“PST”) issues may also arise.

Under the Canada Pension Plan and the Employment Insurance Act “employers” are responsible for deducting CPP contributions, EI premiums and under the Income Tax Act, employers are also responsible for deducting income tax from remuneration or other amounts they pay to their employees – i.e., no such deductions are required where an individual is self-employed. Employers are required to remit these deductions along with their share of CPP contributions and EI premiums.

An employer who fails to deduct the required CPP contributions and EI premiums must pay both it’s share (i.e., the employer's share) and the employee's share of any contributions and premiums owing, plus a penalty. Accordingly, in this context, whether an individual is engaged as an employee or independent contractor can have significant implications.

Millar Kreklewetz LLP has experience in representing taxpayer’s that have been issued Rulings by the Canada Revenue Agency (the “CRA”) finding that a particular individual was engaged in “insurable employment” (i.e., whether they are employees or independent contractors), when such was not the intent of the parties.  Millar Kreklewetz LLP also has experience in seeking Rulings from the CRA on behalf of taxpayers who wish to confirm the status of the individuals that they engage.

Millar Kreklewetz LLP has expertise in assisting clients undergoing CPP or EI audits. Millar Kreklewetz LLP also has extensive experience in successfully filing appeals to the CRA in respect of CPP and EI Rulings. Where necessary, Millar Kreklewetz also has experience in representing taxpayers in respect of CPP and EI appeals before the Tax Court of Canada, the Federal Court, the Federal Court of Appeal and the Supreme Court of Canada.

Millar Kreklewetz LLP also provides a full range of planning in these areas including assistance in drafting contracts with a view to ensuring that the proper legal characterization of the relationship is documented.

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