![]() Where CPP contributions and/or EI premiums must be deducted from an employee’s pay, the employer is liable for CPP contributions and EI premiums on its own account. Further, EI premiums are not required to be withheld if premiums are payable in respect of the Canadian employment services under the employment insurance laws of the employee’s home country. In general, resident and non-resident employers have the same payroll tax obligations with respect to work performed in Canada by their employees, which include deductions for income tax, Canada Pension Plan (“ CPP”) contributions, and employment insurance (“ EI”) premiums, and any applicable provincial payroll taxes.Ī non-resident employer without an establishment in Canada is generally not required to withhold CPP contributions. Having an employee in Canada invariably means that the employer will have to register with the CRA for a payroll account because the employer will have payroll tax obligations and/or the account will be required in order to obtain an exemption from some or all of its payroll tax obligations. ![]() Where the remote working arrangement arose or continued due to Covid-19 travel restrictions, the Canada Revenue Agency (“ CRA”) has provided for significant administrative concessions that limit a non-resident employer’s exposure. The discussion herein assumes that the remote working arrangement in Canada is intentional. Among other things, depending on the circumstances, the employer may also have an obligation to file Canadian tax returns, pay Canadian income tax, and comply with payroll tax and/or value-added tax obligations. Unless the employee is seconded to a Canadian affiliate of the employer on a cost-recovery basis, the employer will be required to register with the Canada Revenue Agency (“ CRA”). A number of issues can arise if an employee of a non-Canadian employer comes to Canada to work remotely.
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