Coming January 2024, new CRA Policy will impact remote employee payroll deductions
- Posted by Gurpreet Kaur
- On December 10, 2023
- 0 Comments
The Canadian Revenue Agency’s (CRA) new policy on remote employee payroll deductions is poised to reshape the landscape of payroll administration in 2024. As businesses prepare to adapt to these impending changes, it is crucial to understand the implications of the new policy, seek professional guidance, and leverage support services to ensure compliance and seamless payroll operations. This article provides insights and strategies to help businesses navigate the complexities of the new policy and maximize efficiency in complying with CRA’s regulations.
Current Payroll Policy
Payroll deductions are calculated based on the employee’s physical work location. If employees don’t work at their employer’s establishment, their province of employment is where they receive their income. Consider an individual who is a remote worker, residing and working from their home in Nova Scotia and getting paid from their employer’s head office in Toronto, Ontario. In this case, the province of employment is considered Ontario, and the Ontario payroll table is utilized to determine the appropriate withholdings.
New Payroll Administrative Policy
This new policy will only apply to “full-time remote work agreements,” which are agreements between employers and employees that include the following features:
- The employer allows employees to perform all their job responsibilities from a remote location by their choice or the employer’s direction.
- The agreements may be temporary or permanent.
- The job duties must be performed outside the employer’s establishments.
If an employee has a full-time contract, the employer must determine if they are “attached to the employer’s establishment” “Before January 1, 2024, employers should assess their payroll procedures to ensure they comply with the new policy.”
Help From VN Accounting Solutions
VN Accounting Solutions is dedicated to helping businesses navigate the complexities of the CRA’s new policy on remote employee payroll deductions. Our team of experienced professionals specializes in Canadian tax regulations and payroll administration, offering comprehensive guidance and support to ensure compliance and maximize efficiency. Whether your business is seeking to realign its payroll processes, optimize payroll deductions for remote employees, or address specific compliance concerns, VN Accounting Solutions is committed to providing tailored solutions that align with your business objectives and regulatory requirements.
Payroll Service is in Mississauga, Brampton, and Bowmanville, Canada.
Don’t hesitate to contact our expert payroll team in VN Accounting Solutions to determine whether the new policy would apply to your remote work arrangements or how it could affect your payroll remittances. Contact us today!
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