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 Service Canada 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 Service Canada 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 Treasury Board (TB).
Session: The convening of a board of referees for the purpose of considering EI appeal cases; hearing interested parties and witnesses, deliberating, preparing and completing the written decisions. Also includes training and other information seminars convened by the Commission.
Appendix B - Frequently Asked Questions
Are board of referees chairpersons and members considered as contractors or employees of HRSDC ?
Canada Revenue Agency (CRA) 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 CRA 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?
1. Did this employee's contract require the employee to pay his or her own expenses while carrying out the duties of employment?
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.
2. 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.
3. Did you require this employee to be away for at least 12 consecutive hours from the municipality and metropolitan area (if there is one) of your business where the employee normally reported to work?
No (the answer may be yes on occasion, when members are required to travel to another board centre to hear cases.)
4. Indicate the period(s) of employment during the year.
N/A
5. Did this employee receive a motor vehicle allowance?
No
Did this employee have the use of a company vehicle?
No
Was the employee responsible for any of the expenses incurred for the company vehicle?
No (The answer may be yes, on occasion, when the job requires the employee to travel.)
6. Did this employee receive a repayment of the expenses he or she paid to earn employment income?
No
7. Did you require this employee to pay other expenses for which the employee did not receive any allowance or repayment?
No
8. Did you pay this employee wholly or partly by commission according to the volume of sales made or contracts negotiated?
No
Is there a business development account or other similar commission income account available from which the employee’s employment expenses are paid or reimbursed?
No
9. Did you require this employee under a contract of employment to:
rent an office away from your place of business?
Nopay for a substitute or assistant?
Nopay for supplies that the employee used directly in his or her work?
Nopay for use of a cell phone?
NoDid you or will you repay this employee for any of these expenses?
No
10. Did you require this employee under a contract of employment to use a portion of his or her home for work?
Was the home work space used exclusively to earn income from the office or employment and on a regular and continuous basis, for meeting clients or other persons in the ordinary course of performing the office or employment duties during the period to which the expenses relate?
Do not select either “Yes” or “No”. Indicate “See annex” in the blank space below the boxes.Did you or will you repay this employee for any of the expenses?
No
11. Did you require this tradesperson, as a condition of employment, to purchase and provide tools that were used directly in his or her work?
N/A
12. Did this employee work for you as an apprentice mechanic?
N/A
13. Did this employee work for you in forestry operations?
N/A
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