Tag Archives: province of employment

ON and QC Sales Taxes on Group Benefits – Who Has to Pay?

It’s not often that payroll staff associate payroll with provincial sales tax. It’s true that payroll staff relate sales taxes – GST, HST and QST – to the T4 reporting of taxable benefits, but that’s just because the cost base … Continue reading

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Is Workers’ Compensation coverage mandatory?

In Canada, one of the first areas of the employment relationship to be regulated was Workers’ Compensation, with the first Workers’ Compensation Boards created during WWI. There are now WCBs in every province and territory in Canada, while federally-regulated employers … Continue reading

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Quebec or Not Quebec?

One of the factors that makes Canadian payroll so complex is that there are 14 separate jurisdictions. It’s not just the number of these, but that the rules used to determine jurisdiction are both complex and vary based on the … Continue reading

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Where does a director “report to work”?

It’s time to test your payroll knowledge. In the following scenario, what do you think is the correct province of employment? Sharon is a member of the board of directors of a Canadian resource company. Although the corporate headquarters are … Continue reading

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Which province has jurisdiction over this work?

Brent is an Ontario resident. His employer is incorporated under the Canada Corporations Act and carries on business in most provinces across Canada. The employer is provincially regulated, for employment standards purposes. Brent normally works out of the employer’s Ottawa … Continue reading

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When do earnings stop being pensionable and insurable?

The CRA asserts that earnings don’t stop being CPP pensionable or EI insurable, just because the employment relationship is over. My experience is that most payroll practitioners follow logic something like this to determine if CPP or EI source deductions … Continue reading

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What’s the province of employment when paying a retiring allowance?

Everyone knows the importance of the province of employment. First, getting this right is fundamental to correctly calculating income tax source deductions, since these are in part based on legislation specific to the province concerned. Second, since the province of … Continue reading

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Payroll for US Directors of Canadian Corporations: Part One.

There are special payroll challenges when directors of Canadian corporations are not Canadian residents. The large amount of direct foreign investment in Canada, either in wholly owned subsidiaries or as minority direct investment, means many foreigners sit on the boards … Continue reading

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