Guidelines for Employee Contracted Services
The University’s Employee Contracted Services Guidelines are effective September 1, 2000. The guidelines are based on Canada Customs and Revenue Agency (CCRA) requirements and case law concerning income from employment versus business income.
Contracts will be assessed using the Employee Contracted Services Guidelines to determine the correct method of payment to individuals or business entities providing services to the University. Individuals that disagree with the University’s assessment of their contract status have the option of applying to Canada Customs and Revenue Agency for a ruling regarding their status. Canada Customs and Revenue Agency will assess each case on its own merit.
To apply for a ruling, individuals need to complete a CPT1 “Request for a Ruling as to the Status of a Worker under the Canada Pension Plan and/or Employment Insurance Act”. This form is submitted to the Department of Human Resources, who will submit to Canada Customs and Revenue Agency for assessment. A ruling will take approximately 60-90 days to receive. Individuals have the option of delaying payment until a Canada Customs and Revenue Agency ruling is received. Individuals wishing to receive remuneration for their contract while waiting for a ruling will be processed through payroll.
Individuals wishing to contact Canada Customs and Revenue Agency to discuss their situation are encouraged to contact a rulings officer, not the general 1-800 information line. The 1-800 number is for general information only and the attendants will not be able to provide you with tax advice specific to your situation. Please contact Mr. Bill Preston at the Halifax Rulings Office, (902)426-8095.
Canada Customs Revenue Agency publishes a document called “Employee or Self-Employed”which may provide additional information.