Remuneration Paid as an Employer or a Payer
Employer
You pay remuneration as an employer if you pay:
- a salary or wages to an employee;
- a retiring allowance;
- a death benefit to the heirs of a deceased employee.
Payer
You pay remuneration as a payer if you pay a beneficiary:
- a retirement benefit (for example, from a registered pension plan [RPP]);
- an annuity (for example, from a registered retirement savings plan [RRSP], a registered retirement income fund [RRIF] or a deferred profit-sharing plan [DPSP]);
- an amount under a profit-sharing plan, an employee benefit plan or an employee trust;
- an amount under a retirement compensation arrangement;
- a single payment from an RRSP or an RPP;
- wage loss replacement benefits under a wage loss replacement plan to which an employer contributed.
Note
You may be in a situation where you pay remuneration to a beneficiary who is also your employee. In that case, you are considered to have acted as a payer because the individual received the remuneration as a beneficiary, not as an employee.