Summary
As of January 31, 2024, online platforms such as Uber, Skip the Dishes, and DoorDash will be required to report information about their workers' income to the Canada Revenue Agency (CRA). This requirement is part of Bill C-47, an amendment to the Income Tax Act, which mandates that platforms share this information with the CRA annually by the end of January.
Implications for Gig Workers:
This new legislation is areminder for gig workers to be diligent in declaring their income. While itdoesn't change the fundamental process of filing taxes, it underscores theimportance of accuracy and transparency in income reporting.
Key Points:
· Platforms must report the name, date of birth, address, and total incomeearned by workers who logged more than 30 activities (sales, trips, orassignments) and earned over $2,800 during the year.
· The CRA has not confirmed which platforms are required to report, butpopular platforms like Uber and DoorDash are expected to comply.
· A "platform operator" is defined as an entity that contracts with sellers to make a platform available for connecting with customers.
Compliance and Potential Issues:
Platforms are required to provide gig workers with a copy of the information they submit to the CRA. Discrepancies between what the platform reports and what the worker files could raise red flags, so it's crucial for gig workers to ensure their records match the platform's disclosures.
Benefits for Gig Workers:
This change could be advantageous for gig workers, as it allows them to earn RRSP contribution room and the option to contribute to CPP and EI. These contributions can help gig workers plan for their future and provide financial security.
The Bigger Picture:
Gig work is already financially precarious, as highlighted in recent investigations. With millions of Canadians participating in the gig economy, and over 800,000 citing it as their main job, these new reporting requirements aim to bring more stability and transparency to the sector.
If you have any questions or need assistance with your income reporting, our team is here to help. Contact us for guidance and support.
Disclaimer: The information provided is for general informational purposes only and is not intended to provide professional advice. Tax regulations are subject to change. For up-to-date information or personalized advice, please contact our office.
