RSM324H1 Lecture Notes - Lecture 4: The Employer, Accrual, Pension
Document Summary
Employment income and the gst/pst/hst: scope and structure of employment income. Income from providing a service if that individual is considered employed by another party: employed is not defined within the act and therefore rests on common law decisions, normally considered employed: When they agree to provide their services, At the full direction and control of the employer, In return for a specific salary or wage: a. Employed defined, continued: may provide services to another party as an independent contractor. Not subject to same direction or control. Paid in the form of a fee: distinction is important. Rules for determining income for tax differ for an employee than as an independent businessperson: a. Employed defined, continued: when the relationship is not clear, the courts consider four factors: Independent contractor: chance of profit or loss test. Integration test: a worker whose work is an integral part of the business is probably an employee.
