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CPP/EI Rulings

Posted by admin on February 19, 2015 in business advice |

CPP/EI Rulings and how to obtain a ruling

 

The CPP/EI Rulings Program is responsible for providing clients with rulings that indicate whether a worker is an employee or is self-employed, whether or not that worker’s employment is pensionable for Canada Pension Plan (CPP) purposes and/or insurable for employment insurance (EI) purposes. A ruling may also indicate the amount of pensionable or insurable earnings a worker has and the number of insurable hours an employee has in insurable employment.

The CPP/EI Rulings Program is also responsible for issuing certificates of coverage and extensions to those certificates, under Social Security Agreements that Canada has with other countries. In addition, the CPP/EI Rulings Program is responsible for certifying applications by religious sects seeking exemption from coverage under the CPP, and approving applications for coverage of employment of an Indian in Canada under the CPP, whose income is exempt under the Income Tax Act.

How to obtain a ruling for Canada Pension Plan and employment insurance purposes

Introduction

A ruling is an official decision issued by an authorized officer of the Canada Revenue Agency (CRA). A ruling states whether a worker is an employee or is self-employed, and whether or not that worker’s employment is pensionable or insurable. It may also indicate the amount of pensionable or insurable earnings a worker has and whether or not Canada Pension Plan (CPP) contributions and employment insurance (EI) premiums must be paid. A ruling can also indicate the number of insurable hours an employee has in insurable employment.

Requesting a ruling

The Canada Employment Insurance Commission (CEIC), the Minister of Employment and Social Development Canada, an employer, an employee, or a person claiming to be an employer or an employee can request a ruling. If an employer is not sure whether CPP contributions and EI premiums should be deducted from a worker’s pay, the employer can request a ruling from CRA. The same is true for a worker who wants to know whether CPP contributions and EI premiums should be deducted from his or her pay.

For general information about determining whether a worker is an employee or is self-employed, see Guide RC4110, Employee or Self-employed?

An employer or a worker can request a ruling by sending a letter or a completed Form CPT1, Request for a Ruling as to the Status of a Worker under the Canada Pension Plan or Employment Insurance Act  to their tax services office. For a list of offices, see Tax services offices and tax centres. You can get this from our Forms and publications page or by calling1-800-959-5525 .

If you have a payroll account and are registered on My Business Account, you can use the “Request a CPP/EI ruling service” in My Business Account.

An authorized representative for the payer can request a ruling electronically at Represent a client.

Note
The Minister of National Revenue on its own initiative can make a ruling at any time with no restrictions.

Time limit to request a ruling

A worker or an employer can request a ruling before June 30 of the year following the year to which the question relates. For example, if the employment took place in 2013, the ruling request has to be made before June 30, 2014.

The CEIC is not subject to the same time limit. It can request a ruling from us at any time.

The ruling process

Once a ruling has been requested, an authorized CRA officer will contact the worker and the employer to discuss the working arrangement that was (or is) in place. Sometimes the officer has to ask the employer for more information such as payroll records, copies of written contracts, or other related documents. On receipt of the necessary information, the officer will decide whether or not the worker was (or is) an employee working in pensionable or insurable employment for purposes of the Canada Pension Plan, the Employment Insurance Act, or both.

Once a ruling has been made, the officer sends a letter to the worker and the employer informing them of the decision. Every ruling can be appealed and the procedure for doing so is explained in the letter. More information about appealing a ruling can be found in our pamphlet called Your Appeal Rights: Employment Insurance and Canada Pension Plan Coverage.

For more information

To get more information, call 1-800-959-5525 .

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