Context Of Remote Work – CRA Revised Policy For Fully Remote Employees

The CRA recently revised its administrative policy for determining the payroll deduction table that applies for employees who are working fully remotely. In this article, we briefly consider the revised policy and its implications for employers.

When applying payroll deductions, the employee's province or territory of employment ("POE") must be determined so that the proper deductions are withheld. An employee's POE usually depends on where the employee physically reports for work. Where an employee did not physically report to work, the employee's POE was the province from which the employee was paid.

The new test:

Starting on January 1, 2024, where there is a full-time work agreement, the employer must determine if the employee is reasonably considered to be "attached to an establishment of the employer" in order to determine which jurisdiction relates to the source deductions.