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  • Payroll Taxes in Canada

    AT A GLANCE

    Payroll Taxes in Canada

    In general, corporations based in Canada pay corporate income tax (CIT) on their worldwide income.Non-resident corporations pay CITIn 2022

    Last Updated 31/07/2024

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    AT A GLANCE

    Social security taxes:

    In 2022, employers need to pay pension plan contributions and employment insurance premiums for each employee.

    In Quebec, employers pay slightly different amounts for these items and also contribute to a parental insurance plan.

    Starting from 2019, employers and employees must pay higher pension plan contributions, which will be phased-in over seven years.

    How Tax Natives works.

    Tax Natives is an international tax network that connects Explorers (taxpayer clients) with Natives (qualified and regulated tax advisers) from one jurisdiction to another.

    Ask a question to get started

    STEP ONE

    Select the 'Ask a question button located on the top of each page and follow through the process to compose your question

    STEP TWO

    Once your question is confirmed and your account is set up, navigate to your user dashboard to view the message exchange between you and your Tax Native.

    STEP THREE

    Each Tax Native has to accept a question from an Explorer before a conversation can begin. Once the Tax Native has accepted your question, a quote will be submitted for approval through the messaging portal.

    Provincial/territorial payroll taxes:

    Employers in British Columbia, Manitoba, Newfoundland and Labrador, Ontario, and Quebec have to pay payroll tax.

    The rates range from 1.95% to 4.3%. Quebec employers with a payroll of at least CAD 2 million must also contribute 1% of payroll to training or a provincial fund.

    In the Northwest Territories and Nunavut, employers must deduct a 2% payroll tax from employees’ salaries.

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    Withholding tax for non-resident employees:

    Employers that pay salaries to non-residents of Canada for work done in Canada must withhold personal income tax, unless they have a waiver.

    This can be time-consuming and burdensome.

    However, if the employer is a ‘qualifying non-resident employer’ and the employee is a ‘qualifying non-resident employee,’ the withholding requirement does not apply.

    A ‘qualifying non-resident employer’ is one that is a resident of a country with a tax treaty with Canada and has been certified by the Minister.

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    A ‘qualifying non-resident employee’ is someone who lives in a country with a tax treaty with Canada, is exempt from Canadian income tax under the treaty, and either works in Canada for less than 45 days in a year or is present in Canada for less than 90 days in a 12-month period.

    To become certified, a non-resident employer must submit Form RC473 to the CRA.

    Certification lasts for two years and may be revoked if the employer fails to meet certain conditions or comply with Canadian tax obligations.

    To maintain certification, employers must track employees’ days in Canada, determine if employees qualify as ‘qualifying non-resident employees,’ obtain a Canadian Business Number, file necessary tax forms, and make records available to the CRA if requested.

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    SPOTLIGHT ARTICLE

    Estate Planning – Common problems when dealing with succession

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    MEMBERSHIP LEVELS —

    What are the membership types available?

    Curator Native

    FREE

    The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    However, the Curator has additional responsibilities. They are tasked with the responsibility of managing and updating one of the jurisdiction pages. There is only one Curator membership available for each jurisdiction.

    Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.

    A Curator can also provide articles if they wish.

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    Creator Native

    FREE

    The Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    However, the Creator has additional responsibilities. They commit to their other Natives that they will produce at least one piece of quality content each quarter – whether an article, video or other valuable content.

    There are multiple Creator memberships available for each jurisdiction. Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.

    READ MORE

    Adviser Native

    £65 / month

    The Adviser is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Adviser is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Adviser Native is a care-free soul and has made no other commitments to his fellow Tax Natives to generate content or curate a jurisdictional page. That’s cool.

    However, the Adviser will be eligible to pay the full monthly membership fee.

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    Become a curator

    TAX NATIVES: CURATOR

    Curator

    The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    However, the Curator has additional responsibilities. They are tasked with the responsibility of managing and updating one of the jurisdiction pages.

    There is only one Curator membership available for each jurisdiction.

    Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.

    READ MORE
    Become a creator

    TAX NATIVES: CREATOR

    Creator

    The Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    However, the Creator has additional responsibilities. They commit to their other Natives that they will produce at least one piece of quality content each quarter – whether an article, video or other valuable content.

    There are multiple Creator memberships available for each jurisdiction. Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.

    Become an adviser

    TAX NATIVES: ADVISOR

    Adviser

    The Adviser is a fully-fledged member of the Tax Natives team.

    As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Adviser Native is a care-free soul and has made no other commitments to his fellow Tax Natives to generate content or curate a jurisdictional page.

    That's cool.

    However, the Adviser will be eligible to pay the full monthly membership fee.

    Initial admin fee £250 Free £250 Free £250 Free
    Minimum membership term 12 months 12 months 12 months
    Article contentCreator and Curators must create at least one piece of original, quality-approved content each quarter.
    No
    YesCreator and Curators must create at least one piece of original, quality-approved content each quarter.
    No
    Managing and updating your
    jurisdiction page
    Yes
    No
    No

    NATIVE

    FREE

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    TAX NATIVES: CURATOR

    Curator

    The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    However, the Curator has additional responsibilities. They are tasked with the responsibility of managing and updating one of the jurisdiction pages.

    There is only one Curator membership available for each jurisdiction.

    Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.

    Initial admin fee £250 Free
    Minimum membership term 12 months
    Article contentCreator and Curators must create at least one piece of original, quality-approved content each quarter.
    No
    Managing and updating your jurisdiction page Yes

    FREE

    Read more

    TAX NATIVES: CREATOR

    Creator

    The Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    However, the Creator has additional responsibilities. They commit to their other Natives that they will produce at least one piece of quality content each quarter – whether an article, video or other valuable content.

    There are multiple Creator memberships available for each jurisdiction. Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.

    Initial admin fee £250 Free
    Minimum membership term 12 months
    Content creationCreator and Curators must create at least one piece of original, quality-approved content each quarter.
    YesCreator and Curators must create at least one piece of original, quality-approved content each quarter.
    Managing and updating your jurisdiction page No

    £65 / month

    Read more

    TAX NATIVES: ADVISOR

    Adviser

    The Adviser is a fully-fledged member of the Tax Natives team.

    As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Adviser Native is a care-free soul and has made no other commitments to his fellow Tax Natives to generate content or curate a jurisdictional page.

    That's cool.

    However, the Adviser will be eligible to pay the full monthly membership fee.

    Initial admin fee £250 Free
    Minimum membership term 12 months
    Content creationCreator and Curators must create at least one piece of original, quality-approved content each quarter.
    No
    Managing and updating your jurisdiction page No

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