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Returning Member
posted Feb 6, 2020 7:35:47 PM

EI Ruling, I am an employee not a contractor, how much CPP and EI do I owe

I'm a truck driver and a company I worked for was paying me as a contractor (no tax taken off, no CPP or EI contributions). I went through the CRA to prove that I was an employee and not a contractor. My question is how do I calculate how much CPP and EI I owe? This would be for income tax year 2018.

 

Thank you for the help

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1 Replies
Moderator
Feb 9, 2020 2:14:20 PM

It's the employer’s responsibility to remit CPP & EI to the CRA. They have to submit both the employee & employer portions. Your employer can ask you to pay the employee portion, but ultimately they have to submit both to the government, or face penalties.

 

If you haven’t done your 2018 tax return yet, you should talk to your employer about how they are going to fix things, and if you are getting a T4 slip for that year.

 

If you have already submitted your 2018 taxes as a self-employed contractor, then TurboTax would have calculated the CPP, EI & taxes you owed based off your business income. You would have paid both the employee & employer contributions as part of your tax owing. So in that case, now that you are considered an employee for that year, your employer likely owes you for the employer part of the CPP & EI contributions, which they should have paid, not you.

 

Either way, here is a CRA guide on how to calculate CPP: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/manual-calculation-cpp.html

This is a chart which includes CPP rates & other amounts for 2018 and other years: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/cpp-contribution-rates-maximums-exemptions.html

 

Here is a CRA page with instructions on calculating EI: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/employment-insurance-ei/manual-calculation-ei.html

This is a chart with rates for EI: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/employment-insurance-ei/ei-premium-rates-maximums.html