Employment Status, ROE & Termination

This section explains payroll language that matters when worker status affects payroll treatment and when employment changes or ends. It connects employee-versus-contractor status to ROEs, insurable and pensionable concepts, and termination-related pay terms.

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• Employee explains the worker status that usually triggers normal payroll withholding and reporting.
• Independent Contractor explains the status often contrasted with employee payroll treatment.
• Employee Vs Independent Contractor explains the gateway status question that can change deductions and reporting.
• Insurable Employment explains the status behind EI payroll treatment.
• Pensionable Employment explains the status behind CPP payroll treatment.
• ROE explains the Record of Employment in Canadian payroll context.
• Interruption Of Earnings explains the payroll event context that often leads to ROE review.
• Insurable Hours explains the hours concept that matters for reporting and ROE context.
• Final Pay explains the last payroll payment and how it can contain several different amounts.
• Pay in Lieu of Notice explains wages paid instead of requiring the employee to work a notice period.
• Severance Pay explains a separation-related payment that should be kept distinct from ordinary wages.

Questions This Section Answers

• How does employee-versus-contractor status change payroll treatment?
• When does the CRA status question affect source deductions, CPP, and EI?
• When does payroll need to think about an ROE?
• What does interruption of earnings mean in payroll context?
• What do insurable hours mean in reporting context?
• How is final pay different from severance pay?
• How is pay in lieu of notice different from severance pay?
• How does termination-related pay differ from ordinary wages?

Continue To

• Year-End Slips & Reporting for year-end slips that serve a different payroll purpose.
• Time, Leave & Special Pay for vacation pay and other special-pay terms that may intersect with final payroll.
• Statutory Deductions for insurable-earnings context that often sits nearby.

In this section

• Employee
  What an employee means in Canadian payroll and why employee status drives withholding, remittance, reporting, and recordkeeping.
• Employee Vs Independent Contractor
  How employee-vs-independent-contractor status affects Canadian payroll, source deductions, CPP, EI, slips, and CRA ruling decisions.
• Final Pay
  What final pay means in Canadian payroll and how the last payroll payment differs from severance pay, vacation payout, and ROE reporting.
• Independent Contractor
  What an independent contractor means in Canadian payroll and why contractor status is often treated as self-employed status rather than ordinary payroll employment.
• Insurable Employment
  What insurable employment means in Canadian payroll and why this status matters for EI premiums, insurable hours, and ROE reporting.
• Insurable Hours
  What insurable hours mean in Canadian payroll and why they matter for ROE and reporting context.
• Interruption of Earnings
  What interruption of earnings means in Canadian payroll and why it matters for ROE preparation and Service Canada context.
• Pay in Lieu of Notice
  What pay in lieu of notice means in Canadian payroll and how wages paid instead of working notice differ from severance pay, final pay, and ROE records.
• Pensionable Employment
  What pensionable employment means in Canadian payroll and why this status matters for CPP contributions and pensionable earnings.
• ROE
  What an ROE means in Canadian payroll, when it is used, and how it differs from a pay stub or T4.
• Severance Pay
  What severance pay means in Canadian payroll and how it differs from ordinary wages, final pay, and other termination-related amounts.