Appendix A - Technical Terms:
Board of referees: A board, consisting of a chairperson and one or more members, chosen from employers or the representatives of employers and an equal number of members chosen from insured persons or representatives of insured persons. The board's purpose is to fulfil the requirements for the first level of appeal from a decision of the Human Resources and Skills Development Canada (HRSDC).
Board of referees assistant: An employee of HRSDC responsible for all preliminary and subsequent tasks for the holding of sessions of the board of referees according to the established policies of HRSDC and the Appeals Directorate at National Headquarters (NHQ).
Remuneration: A fee payable to the board chairperson and the board members which is determined by HRSDC and approved by the TB.
Session: The convening of a board of referees for the purpose of considering cases. Also includes orientation and other information seminars convened by HRSDC.
Appendix B - Frequently Asked Questions
Are board of referees chairpersons and members considered as contractors or employees of HRSDC ?
Canada Customs and Revenue Agency (CCRA) considers these board chairpersons and members to be "in tenure of an office". This means they are not employees or independent contractors, but rather they are a hybrid of these two relationships and are grouped under this third category. According to the Income Tax Act and backed by a CCRA interpretation, board of referees income is for tax purposes considered to be "income from an office or employment."
Will board of referees chairpersons and members have an employer/employee relationship if HRSDC pays the employer portion of CPP/QPP?
No. Employment defined as "in tenure of an office" is subject to various sets of legislation and regulations. This legislation, however, does not necessarily affect the employment relationship HRSDC maintains with the board chairpersons and members. CPP/QPP requirements for board members or chairpersons are no different from a normal employer/employee relationship. Both, the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) deems board of referees' remuneration to be "pensionable income", therefore CPP/QPP must be deducted. Even though this requirement exists, HRSDC still keeps an arm's length employment relationship with this group of workers. In conclusion, although Revenue Canada and Revenue Quebec both consider there is no employer/employee relationship, nonetheless they have ruled that Canada/Quebec Pension premium deductions must be made.
Is the T4 the correct reporting document for Board of Referees payments?
Yes. Amounts paid, excluding reimbursement of expenses, must be reported to Revenue Canada Taxation on a T4 Information Slip as "Employment Income".
How must I complete the T2200 "Declaration of Conditions of Employment" form?
Did this employee's contract require the employee to pay his own expenses?
Do not select either "Yes" or "No". Indicate "See annex" in the blank space below the boxes.
The annexed document should contain the following information:
The Boards of Referees members are not employees. They are not bound by contract, but by a general undertaking and are paid a per diem on hearing days, on average two days a month. They do incur expenses in the performance of their duties related to preparing for hearings using automated tools/Internet and these expenses are not reimbursed.
Did you normally require this employee to work away from your place of business or in different places?
Do not select either "Yes" or "No". Indicate "See annex" in the blank space below the boxes.
Did the employee receive an allowance?
No.
Did this employee receive a repayment of the expenses he or she paid to earn employment income?
No. (May occasionally be 'yes' in circumstances involving travel to another board centre than the one to which the member /chairperson was appointed.)
Did you require this employee to pay other expenses for which the employee did not receive any allowance or repayment?
No.
Did you pay this employee wholly or partly by commissions or similar amounts according to the volume of sales made or contracts negotiated?
No.
Was this employee required to be away for at least 12 hours from the municipality and metropolitan area of your business where the employee normally reported for work?
No (unless the member had to travel to another board centre to hear cases).
Did you require this employee under contract of employment to:
-
Rent an office away from your place of business, or use a portion of his home?
Do not select either "Yes" or "No". Indicate "See annex" in the blank space below the boxes. -
Pay for a substitute or assistant? No.
-
Pay for supplies that the employee used directly in his work? No