The Business province setting directly determines which income tax rates are applied to employees during payroll processing. Even if employees work remotely or in a different province, the business’s registered province controls their income tax calculation in payroll.
Why does this matter?
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Income tax deductions are based on the province set in your Business settings
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This ensures consistency with CRA remittance rules
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Employees may still have to reconcile differences at tax time if their actual work location differs from the business province
Note: If employees live or work in a different province, consult with your payroll or tax advisor to ensure proper withholding practices.
CRA guidance
For more information. please refer to this article.
Disclaimer: This article is not intended to provide tax, legal, benefits, financial, or HR advice. Since laws and regulations are subject to change and may differ by location, please consult a legal or HR professional for personalized guidance.