COIDA - who is an employee?

[Christel]

Hi all,
I have a question : "who is an employee" w.r.t the COIDA act for RoE?

90% of my clients are farmers. And on many of the payrolls we put thru a salary mainly for the tax benefit (monthly PAYE) of the director/partner/wife/children.
Per the attachment - this is an extract from the COIDA forms - do I exclude all "sole owners or partners in a farming operation"?

If they are directly involved in the running of the farm, i.e. the wife do the admin/bookkeeping, then I would include her salary? But if she earns a salary just for the tax benefit (i.e. PAYE monthly) then I can exclude the salary in total?



Thanks.

[Dave A]

If they are directly involved in the running of the farm, i.e. the wife do the admin/bookkeeping, then I would include her salary?

The question to answer is whether the wife is a partner in the business.

[Christel]

Ok, if the wife is not a partner (director/trustee) etc, then I will take her into account...
But what about the farmer... the director/trustee/partner... if he actually works on the farm, must his salary still be excluded? And if he purely gets a salary for the tax benefit, can I exclude him in total?

thanks

[Dave A]

With reference to directors - a director is an employee for the purposes of COIDA. The exclusion applies to owners in an unincorporated business entity.

In essence, if the business is a juristic person, everyone on the payroll is an employee.