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Hi everybody welcome back it's me again Eugene from CB es Canadian business and enterprise services we continue with part two of the determination of relations between your companies and employees and subcontractors and as promised today we'll talk about the parties who are interested in this determination how it will affect our business so first of all the parties and generally there are three groups of organizations of people that could be interested in this determination one at government organizations that we already spoke about CRA Canadian Revenue Agency WCB workers safety insurance board and Ministry of Labor from one side your employees or subcontractors from another side and third parties different people organizations that you your company work with that might be interested in defining your subcontractors an employee or vice versa usually as an employer so first of all let's talk about the implicant actors they have explicit interest of definition as employees in certain situations three of them mostly first of all when of course your relations with those people break down and you terminate their engagement with your company at that moment your subcontractor who essentially thinks they were your employee would like to file a claim to the Ministry of Labour some times of the court asking for the termination of the actual status of employment and then requesting from you to pay them all the employment related payments that you owe them for all the years that those people were engaged by your company and what I'm talking about are the vacation pay statutory holiday pay overtime if they can prove such and then termination notice and severance pay these are direct amounts that you owe to your employees and you regularly don't pay to your subcontractors so when your relations break down your subcontractor would be interested in getting money's paid to them if they have been determined as the employees second group are the government organizations and they usually work based on the complaint or the action started by such contractors and or in the situations of injuries so Ministry of Labor would like to make this determination usually when they receive the complaint of the employee WSIB would make this determination when there is a work-related incident or accident with your worker being injured and then the question whether that work are covered by WCB coverage whether the worker considered your employee or your worker were subcontractor and who should pay for it and the theory of course come in either of those situations when the information comes to their knowledge they usually would go after you as an as an employer for employee related contributions and sometimes even for withholdings from the months that you pay to your subcontractor so if the cieariy defines a person as your employee rather than subcontractor automatically you owe employer contribution and source deductions so contributions are usually employer health tax CPP which is Canadian pension plan and the eye which is.


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