Personal Finance

Parents added me to payroll without me knowing to collect CERB Benefits

  • Last Updated:
  • Dec 24th, 2020 7:21 pm
[OP]
Newbie
Jul 21, 2018
29 posts
13 upvotes

Parents added me to payroll without me knowing to collect CERB Benefits

Need some opinion here, I have no idea what to make of this. One of the requirements to collect CERB funding is to be employed for a period of at least 5 months ; my parents told me I qualified for this but I thought it made no sense because I voluntarily left my last job around May of 2019 to pursue a post grad diploma. My parents explained that since they are self employed, they added me to their payroll for a long time now, paying taxes and whatnot,only thing unique about this situation is that I wasn't collecting any pay because I had no idea what they were doing. Since we have a financial accountant that files our taxes as a whole, they were able to use my SIN card without me knowing. It has been two months now and I already collected $4000 but I am not spending a dime of it until my concerns are cleared up. Now for my concerns:

1) Is this legal? This seems like Identity Theft to me
2) If this is illegal, how do I prove this to the Service Canada and get a new SIN? My parents practically hide any financial info away from me and I doubt asking them nicely to stop would do anything.
3) Should I be worried? Once I leave my parents house , I do not want their antics legally screwing me.
85 replies
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Jan 31, 2006
7012 posts
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notaPCgamer wrote: Need some opinion here, I have no idea what to make of this. One of the requirements to collect CERB funding is to be employed for a period of at least 5 months ; my parents told me I qualified for this but I thought it made no sense because I voluntarily left my last job around May of 2019 to pursue a post grad diploma. My parents explained that since they are self employed, they added me to their payroll for a long time now, paying taxes and whatnot,only thing unique about this situation is that I wasn't collecting any pay because I had no idea what they were doing. Since we have a financial accountant that files our taxes as a whole, they were able to use my SIN card without me knowing. It has been two months now and I already collected $4000 but I am not spending a dime of it until my concerns are cleared up. Now for my concerns:

1) Is this legal? This seems like Identity Theft to me
2) If this is illegal, how do I prove this to the Service Canada and get a new SIN? My parents practically hide any financial info away from me and I doubt asking them nicely to stop would do anything.
3) Should I be worried? Once I leave my parents house , I do not want their antics legally screwing me.
Everything Is not legal since you acknowledge you have no idea your parents did it. If you report them you are digging your own grave.
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Mar 10, 2018
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notaPCgamer wrote: Need some opinion here, I have no idea what to make of this. One of the requirements to collect CERB funding is to be employed for a period of at least 5 months ; my parents told me I qualified for this but I thought it made no sense because I voluntarily left my last job around May of 2019 to pursue a post grad diploma. My parents explained that since they are self employed, they added me to their payroll for a long time now, paying taxes and whatnot,only thing unique about this situation is that I wasn't collecting any pay because I had no idea what they were doing. Since we have a financial accountant that files our taxes as a whole, they were able to use my SIN card without me knowing. It has been two months now and I already collected $4000 but I am not spending a dime of it until my concerns are cleared up. Now for my concerns:

1) Is this legal? This seems like Identity Theft to me
2) If this is illegal, how do I prove this to the Service Canada and get a new SIN? My parents practically hide any financial info away from me and I doubt asking them nicely to stop would do anything.
3) Should I be worried? Once I leave my parents house , I do not want their antics legally screwing me.
Why should not the son suffer for the iniquity of the father?’ When the son has done what is just and right, and has been careful to observe all my statutes, he shall surely live. The soul who sins shall die. The son shall not suffer for the iniquity of the father, nor the father suffer for the iniquity of the son. The righteousness of the righteous shall be upon himself, and the wickedness of the wicked shall be upon himself.
I dont care about Ethics, morals, rules or laws. I will apologies only when I get caught.
I try not to apologies but sometimes do it. not because its right thing but it benefits me.
New Mantra for idiots Just ask RFD before searching answers anywhere.
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Dec 16, 2015
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callernamet wrote: Why should not the son suffer for the iniquity of the father?’ When the son has done what is just and right, and has been careful to observe all my statutes, he shall surely live. The soul who sins shall die. The son shall not suffer for the iniquity of the father, nor the father suffer for the iniquity of the son. The righteousness of the righteous shall be upon himself, and the wickedness of the wicked shall be upon himself.
And the son goes to jail. Such is life. Not an idealistic justice.
To the moon
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Jan 31, 2006
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Redsanta wrote: And the son goes to jail. Such is life. Not an idealistic justice.
The son is in an awkward position, reporting it will land his parents in jail. Not reporting it, the crime will hut him forever, since he knows what his parents did is consider a fraud.
Member
May 22, 2007
479 posts
234 upvotes
Mississauga, Ontario
notaPCgamer wrote: Need some opinion here, I have no idea what to make of this. One of the requirements to collect CERB funding is to be employed for a period of at least 5 months ; my parents told me I qualified for this but I thought it made no sense because I voluntarily left my last job around May of 2019 to pursue a post grad diploma. My parents explained that since they are self employed, they added me to their payroll for a long time now, paying taxes and whatnot,only thing unique about this situation is that I wasn't collecting any pay because I had no idea what they were doing. Since we have a financial accountant that files our taxes as a whole, they were able to use my SIN card without me knowing. It has been two months now and I already collected $4000 but I am not spending a dime of it until my concerns are cleared up. Now for my concerns:

1) Is this legal? This seems like Identity Theft to me
2) If this is illegal, how do I prove this to the Service Canada and get a new SIN? My parents practically hide any financial info away from me and I doubt asking them nicely to stop would do anything.
3) Should I be worried? Once I leave my parents house , I do not want their antics legally screwing me.
Why would the parents add you as an employee and pay you a salary, without giving you any of it, pay your taxes to CRA and filing your tax return all without you knowing this was happening and then suddenly you receive CERB for 2 months.....don't you speak to your parents? All this over a space of a year, no discussions?

Sorry pal, but I call BS on this, CERB fraud is my view.
[OP]
Newbie
Jul 21, 2018
29 posts
13 upvotes
macdonlg wrote: Why would the parents add you as an employee and pay you a salary, without giving you any of it, pay your taxes to CRA and filing your tax return all without you knowing this was happening and then suddenly you receive CERB for 2 months.....don't you speak to your parents? All this over a space of a year, no discussions?

Sorry pal, but I call BS on this, CERB fraud is my view.
My parents never told me anything about their financial activities throughout my life, rather, they discouraged me from asking questions. As for them paying my CRA taxes, I can only assume they are finding legal loopholes for their benefit?
[OP]
Newbie
Jul 21, 2018
29 posts
13 upvotes
callernamet wrote: Why should not the son suffer for the iniquity of the father?’ When the son has done what is just and right, and has been careful to observe all my statutes, he shall surely live. The soul who sins shall die. The son shall not suffer for the iniquity of the father, nor the father suffer for the iniquity of the son. The righteousness of the righteous shall be upon himself, and the wickedness of the wicked shall be upon himself.
The Sins of the Father right?
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Aug 22, 2011
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You don't open your own mail?
[OP]
Newbie
Jul 21, 2018
29 posts
13 upvotes
cgtlky wrote: The son is in an awkward position, reporting it will land his parents in jail. Not reporting it, the crime will hut him forever, since he knows what his parents did is consider a fraud.
In all honesty, not reporting this will not affect my conscious in the slightest; the whole situation just felt shady and I wanted to confirm if my gut feeling was correct; Much worse financial things were done to me so no worries.
Newbie
Jul 1, 2015
72 posts
29 upvotes
Toronto, ON
notaPCgamer wrote: Need some opinion here, I have no idea what to make of this. One of the requirements to collect CERB funding is to be employed for a period of at least 5 months ; my parents told me I qualified for this but I thought it made no sense because I voluntarily left my last job around May of 2019 to pursue a post grad diploma. My parents explained that since they are self employed, they added me to their payroll for a long time now, paying taxes and whatnot,only thing unique about this situation is that I wasn't collecting any pay because I had no idea what they were doing. Since we have a financial accountant that files our taxes as a whole, they were able to use my SIN card without me knowing. It has been two months now and I already collected $4000 but I am not spending a dime of it until my concerns are cleared up. Now for my concerns:

1) Is this legal? This seems like Identity Theft to me
2) If this is illegal, how do I prove this to the Service Canada and get a new SIN? My parents practically hide any financial info away from me and I doubt asking them nicely to stop would do anything.
3) Should I be worried? Once I leave my parents house , I do not want their antics legally screwing me.
You went back to school for post grad and have to ask this question? Yes, it is wrong. No, you’re not entitled to CERB. No you can’t get a new SIN number. Also, if you are receiving the CERB and benefiting from it (ie: it’s in your bank account or an account that you have access to) then YOU are responsible for being paid incorrectly and will be the one to pay it back if you get caught. Your parents may have to worry about CRA, not service Canada.
Deal Addict
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Feb 16, 2003
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The question is why did the parents add the son to their payroll months ago and not only is the son doing any work but it seems that they arent paying him either?
It seems to me that they are committing fraud somehow, but Im not sure how.
Maybe someone with experience in these matters can explain what the parents are doing..
Deal Addict
Jul 22, 2009
1410 posts
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Brampton
notaPCgamer wrote: Need some opinion here, I have no idea what to make of this. One of the requirements to collect CERB funding is to be employed for a period of at least 5 months ; my parents told me I qualified for this but I thought it made no sense because I voluntarily left my last job around May of 2019 to pursue a post grad diploma. My parents explained that since they are self employed, they added me to their payroll for a long time now, paying taxes and whatnot,only thing unique about this situation is that I wasn't collecting any pay because I had no idea what they were doing. Since we have a financial accountant that files our taxes as a whole, they were able to use my SIN card without me knowing. It has been two months now and I already collected $4000 but I am not spending a dime of it until my concerns are cleared up. Now for my concerns:

1) Is this legal? This seems like Identity Theft to me
2) If this is illegal, how do I prove this to the Service Canada and get a new SIN? My parents practically hide any financial info away from me and I doubt asking them nicely to stop would do anything.
3) Should I be worried? Once I leave my parents house , I do not want their antics legally screwing me.
My parents are criminals, let me put this on line, smart, or what?
Deal Addict
May 15, 2013
1766 posts
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Montreal
They are apparently committing fraud against CRA, not harming you at all.
Just talk to them and tell them calmly that you are going to take care of your finances after the Coronavirus pandemia is over.
[OP]
Newbie
Jul 21, 2018
29 posts
13 upvotes
HammerJoe wrote: The question is why did the parents add the son to their payroll months ago and not only is the son doing any work but it seems that they arent paying him either?
It seems to me that they are committing fraud somehow, but Im not sure how.
Maybe someone with experience in these matters can explain what the parents are doing..
Yes, that would be great. My parents have added me to their payroll for a long time now, don't know how long though. They tell me since they have already paid taxes on my behalf, it supposedly makes this legal, whether this is true or not, I have no idea.
[OP]
Newbie
Jul 21, 2018
29 posts
13 upvotes
kopokipi wrote: My parents are criminals, let me put this on line, smart, or what?
A simple post like this is not enough to incriminate anybody, perfectly safe.
Sr. Member
Dec 16, 2004
771 posts
123 upvotes
Toronto
Parents are probably splitting their business income and putting some of it in the name of the OP. They probably figure if they pay the appropriate taxes then it’s all legal....but it’s not.
Deal Guru
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Mar 23, 2008
11906 posts
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Edmonton
notaPCgamer wrote: Need some opinion here, I have no idea what to make of this. One of the requirements to collect CERB funding is to be employed for a period of at least 5 months ; my parents told me I qualified for this but I thought it made no sense because I voluntarily left my last job around May of 2019 to pursue a post grad diploma. My parents explained that since they are self employed, they added me to their payroll for a long time now, paying taxes and whatnot,only thing unique about this situation is that I wasn't collecting any pay because I had no idea what they were doing. Since we have a financial accountant that files our taxes as a whole, they were able to use my SIN card without me knowing. It has been two months now and I already collected $4000 but I am not spending a dime of it until my concerns are cleared up. Now for my concerns:

1) Is this legal? This seems like Identity Theft to me
2) If this is illegal, how do I prove this to the Service Canada and get a new SIN? My parents practically hide any financial info away from me and I doubt asking them nicely to stop would do anything.
3) Should I be worried? Once I leave my parents house , I do not want their antics legally screwing me.
So here’s a few questions for you...

How much have your parents claimed to have “paid” you?
Have you verified that this is the first instance of this? Like, by reviewing your past tax returns?

My thought is that your parents are fraudulently using you to income split. You would probably be getting taxed at a much lower rate than they are, so they pretend to pay you some amount of money, and pay the taxes on it, but then direct the money to their own account. If they just paid themselves the same amount, they would lose more on taxes.

How does this affect you? Well, by signing your tax returns with false information, you’re part of the fraud, and can be on the hook if the CRA catches on. It also means you may lose out on other things like GST credits, etc.

You probably COULD request and receive a new SIN if you called the CRA and told them you suspected some financial shinanigans on your account, but that would fast track the investigation into who’s been making transactions on your account, and it would be a quick connection to your parents company. So if you don’t have the integrity/courage to stand up to your parents, I don’t think you’d have many options. It’s up to you.

C
Deal Expert
Mar 23, 2009
18862 posts
4955 upvotes
Toronto
Yep, if this story is accurate, then both the parents and the accountant are being very, very shady. This not only is a big problem for the parents, it's also a big problem for the OP.
CNeufeld wrote: My thought is that your parents are fraudulently using you to income split. You would probably be getting taxed at a much lower rate than they are, so they pretend to pay you some amount of money, and pay the taxes on it, but then direct the money to their own account. If they just paid themselves the same amount, they would lose more on taxes.
Unfortunately, this type of income splitting (spouse, adult child) seems to be more common than I'd hoped, probably cuz it's relatively easy to do. But what really gets me is a lot of accountants just go along with it. I wonder why. While I know the families in these cases can get hit hard, and rightly so, do the accountants often just get a slap on the wrist? Otherwise I don't understand why the accountants would risk this.
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Aug 18, 2008
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One question... how are you signing your income tax return, and yet you never noticed the income you're reporting is really different from what you're earning?

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