Other tax issues beyond the employment relationship could also arise depending on the circumstances.” If you’re employing a permanent resident outside of Canada, employers may be obligated to register with another country’s tax authorities and withhold tax there. “You can’t count on a country having the same rules as we do-especially if the employee is making key decisions and entering contracts. “An even bigger issue is hiring outside of the country,” says Ball. “However, the government hasn’t taken a look at all this with all the remote work that is taking place today,” says FCPA Bruce Ball, VP of taxation with CPA Canada. The CRA’s policies on place of employment provide essential guidelines to follow. There is often the question of which provincial or territorial tax table to use for workers in Canada. “They may require different accounting, taxation and regulatory procedures than Ontario.” RESEARCH PAYROLL AND TAXATION RULESįor employers, it’s important to start by looking at the implications of working out of province from a payroll, as well as a personal and corporate tax perspective.Īs Howard Levitt, senior partner with Levitt Sheikh in Toronto, explains, companies that have a remote workforce carrying on business in other jurisdictions (outside of Ontario, for example) will be subject to the laws of those jurisdictions. If you have employees who want to work in different jurisdictions or if you are considering expanding your remote work policy, here are some facts to keep in mind. “This has become an incredibly important area for employers.” “There is definitely a trend of companies enabling employees to work in locations outside of their home base,” says Sonia Gandhi, CPA, partner and national leader for KPMG’s Global Mobility Services (GMS) in Toronto. ![]() But, while “remote” has often been used to refer to working from home, the notion has been expanding to include other geographical locations as well. Over the past two years, organizations have become adept at sustaining a remote workforce. A growing number of countries are offering remote work visas to encourage employees to work remotely in their jurisdictions (Westend 61/Getty Images)
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