Employers may have to change the way their payroll systems deal with non-resident employees who:
Many employers overlook the fact that these employees are subject to the payroll requirements imposed under Section 102 of the Income Tax Regulations (Reg. 102). Every employer—resident in Canada or not—must maintain a Canadian payroll system and withhold prescribed federal and provincial income tax for all employees who reside or physically work in Canada.
Learn more about the implications of recent and pending developments.