URGENT: deceitful employer and filing taxes

[Julsen]

Hi,
Please can help to shine light on this matter, as we are unsure of what next steps to take.

Last year, my sister was employed(or so she thought) as a part-time nanny to 2kids. would go to the employers house to meet the kids after school, prepare dinner and light housekeeping duties. This was last year April.

Fast-forward to March 2015, she asks her employer for a T4. The employer says well, she isn't her employer per say, and that my sister is an independent contractor. The lady further adds that this is the arrangement she has always had with previous nannies. Prior to her hiring my sister, she never mentions this so-called arranement.

My sister is awaiting her PR under the LIC program and has an OWP. She was also on EI for a while, since she was unable to find full-time employment after her Live-in caregiver contract was over with her first employer. Normally, she should be able to show that she has been working, but this deceitful woman has cost her a year, now saying she is not her employer.

Please what advice would you give for her filing her taxes. She filled in her EI weekly reports that she in not self-employed but did declare she was receiving income as a part-time worker.
An independent contractor is considered to be self-employed with a registered business, not on work permit! This lady just wants to avoid paying employer taxes, but wants to file for returns to collect benefits for having paid for child care services. Isn't this illegal?

Please help...any suggestions? :'(

 

[mylady833]

Maybe there was a mis understanding between your sister and the "employer". The employer and the employee if they both agree, that employer will pay the gross amount to the employee , your sister, without any deductions like TAX, CPP AND EI. Your sister doesnt need to have a business or to be an independent contractor for this. But your sister have the obligation to declare the income from that part time job at the end of the year for tax purposes.

 

[Julsen]

Maybe there was a mis understanding between your sister and the "employer". The employer and the employee if they both agree, that employer will pay the gross amount to the employee , your sister, without any deductions like TAX, CPP AND EI. Your sister doesnt need to have a business or to be an independent contractor for this. But your sister have the obligation to declare the income from that part time job at the end of the year for tax purposes.

Thanks for your reply mylady833,
Yes of course,my sister will declare her income as it's the right thing to do. The problem is because the lady wants my sister's details so that she can then in turn claim that she incurred expenses for child care services, in order to make some tax returns.And in order to do this, since her employer does not want to declare that my sister was her employee, she wants to declare that my sister is an independent contractor. My sister isn't comfortable with this and so has refused to provide the details (SIN no.,e.t.c).
Moreover,the lady(who refuses to be addressed as an employer), never mentioned this in the beginning. I guess it's just a hard lesson learned that one should iron out everything with a potential employer before agreeing to start working for the person, even if it is something as little as a part-time nanny job.

And I thought to mention that my sister has worked for someone else for 3 weeks last summer, and this employer gave her an ROE at the end of it. So why would someone she has worked for almost a year suddenly spring it on her that she is not her employer,so to speak?

Like i said, it's a very hard lesson learned.

Thanks again for your reply