A CPP/EI status ruling can trigger a payroll audit

CRA indicated that when the CPP/EI Rulings Division provides a ruling on whether a worker is an employee or an independent contractor in relation to an employer/services recipient, “it does not automatically send a referral to the Trust Accounts Examination Division.” It only does so “in specific situations and solely to ensure compliance from the employer,” for example “If the ruling changed the employment status of the worker from self-employed to employee.”

Neal Armstrong. Summary of 7 June 2019 STEP Roundtable Q. 15, 2019-0798351C6 under s. 5(1).