A new federal law requiring digital platforms like Uber and DoorDash to report information about their workers' earnings to the Canada Revenue Agency, an expert said, will allow the federal government to catch those who aren't reporting their income accurately.
But some in the sector feel gig workers are being unfairly targeted when they are already making low wages with no benefits.
Under federal law, gig platform operators like Uber and DoorDash are now required to collect and report personal information about their workers and income-related information, such as earnings, to the Canada Revenue Agency by January 31 of each year.
The law was part of the federal government's 2023 budget but comes into effect this year.
Uber driver Rocco Cornacchia, who has been driving for the company in the Greater Toronto Area for about a year, says he prefers to keep track of his earnings for tax purposes.
“It doesn't affect me in any way,” he said.
He said he thinks the new rules are a way for the government to “make sure no one is cheating them on taxes.”
Crack down on self-employment income
While gig workers are required to report their income during tax season, this new law will enable the CRA to better enforce those requirements, said David McDonald, senior economist at the Canadian Center for Policy Alternatives.
“This is definitely going to ensure that anyone who works for these platforms cannot skip their taxes, because it will now be clear that this is self-employment income,” he said.
But McDonald said that creates a difficult situation where digital platforms are required to report earnings information about their employees, but are not required to provide those workers with regular benefits or sick days like other employers.
“I think it creates a precedent now that it's acceptable that we have these gig platforms that look a lot like employers, they're now reporting the same information to the CRA as employers, but they're not bound by labor law,” he said. .
Arla Phillips, president of the Rideshare Drivers Association of Ontario, said she wants to see the federal government do more to protect gig workers.
She says the onus is on the workers themselves to file with the CRA, as they are not currently employees of the reporting company.
“They're asking these gig work companies to report us as if we're employees, but we have no worker rights,” she said.
“So they jumped the gun on it.”
In statements provided to CBC Toronto, spokespeople for Uber, Lyft, and DoorDash said their companies will comply with the new requirement.
