Partners and Wages

When to Call CRA

When to Call CRA

A partner has decided he wants deductions taken off the last monies he has already taken. He also now wants to go on payroll.

Can he do this? And would EI be deducted? He is not able to claim EI as he is a partner.

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Pertnerships are not my strong suit as I don't do enough of it. When I do run into situations like this, I phone CRA ... or you could speak with the partnership's accountant.

I'm fairly certain that partners, like sole proprietors, are not employees and therefore take draws, not pay cheques.

I would think that if the partner wanted "deductions" taken off, the partner could remit CPP and income tax instalments to CRA under the partner's SIN ... you could calculate the amount for him to pay after each draw.

As the partner is exempt from EI, you would not calculate EI amounts when determining instalment amounts.

Like I said at the begininning of my response, make sure you check this with CRA or the partners' accountant.

P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.

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