An analysis by Borden Ladner Gervais, Taxand Canada
Starting from 1 January 2024, the Canada Revenue Agency (CRA) will implement updated guidance for employers dealing with remote work arrangements due to increased post-COVID-19 telecommuting.
The new policy affects payroll deductions for Canadian resident employees, determining their province of employment (POE). The POE is established based on where the employee “reports for work.” Notably, a “full-time remote work agreement” now qualifies as reporting for work at the employer’s establishment, provided certain conditions are met. The CRA provides indicators to assess attachment to the employer’s establishment, including attendance at meetings, receipt of work-related materials, and supervision.
This guidance aims to assist employers in understanding payroll deduction obligations amid the shift to remote work. Employers may need to reassess provincial payroll tables for employees in full-time remote work arrangements, taking into account indicators identified by the CRA.
In this article, Natasha Miklaucic and Alessandro Cotugno from Borden Ladner Gervais, analyse the details and implications of the CRA guidance for workers and employers.
Read the full article here.
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