CPP/EI ruling (CPT1)
A CPP/EI ruling is the Canada Revenue Agency’s decision on whether a worker is an employee or self-employed, and whether the employment is pensionable or insurable. Either the payer or the worker can ask for one, including by mailing Form CPT1.
The CRA’s employers’ guide says a ruling indicates whether a worker is an employee or self-employed, and whether that employment is pensionable or insurable. A buyer meets the term when a worker’s status is unclear, because, the guide says, status can affect how a worker is treated under the Employment Insurance Act, the Canada Pension Plan and the Income Tax Act.
How a ruling is requested
- Through My Business Account (payer) or My Account (payer or worker), by selecting Request a CPP/EI Ruling
- Through an authorized representative in Represent a Client
- By letter or Form CPT1, mailed to the CPP/Rulings Division at the Tax Services Office for the province or territory of residence or place of business
What to keep in mind
The CRA says all of the facts, including the actual terms and conditions, determine status, not just the parties’ intention. Ask the seller whether a ruling was ever requested or issued for any worker, and ask for a copy. See the employee classification risk and employee misclassification.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canada Revenue AgencyGovernmentEmployment status: Employee or self-employed
- 02Canada Revenue AgencyGovernmentEmployers’ Guide – Payroll Deductions and Remittances
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