The Canada Revenue Agency’s guidance for determining a full-time remote worker’s province of employment for payroll deduction purposes, which came into force on Jan. 1, could prove burdensome to employers.

“While the intention is to create certainty, whether it will do so remains to be seen,” says Sarah Mills, an employment lawyer at Blaney McMurtry LLP. “Employers will be dealing with directions that are sophisticated, complex and provide no bright-line test.”

Earlier guidance mandated that the POE for an employee who was required to physically report for work at their employer’s establishment was the province from which the employer paid the employee’s salary and wages.

The analysis required by the most recent guidance; however, is more difficult to apply. Employers must determine whether a “full-time remote work agreement exists” and whether the employee can reasonably be considered “attached to an establishment of the employer.”


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