Province of Employment Decision Tree

This decision tool helps determine the Province of Employment (PREM) and the required payroll tax forms and deductions for Canadian-resident employees, including remote work scenarios.

Answer the following questions to determine the correct province of employment and applicable tax requirements.

Is the employee a resident of Canada?

Yes

Non-Resident Employee

This tool covers Canadian-resident employees only. Non-resident employee tax requirements are determined separately based on tax treaties and specific circumstances.

Does the employer have an establishment in Canada?

Yes

Does the employee physically report to an employer establishment?

Yes

Does the employee report to a single establishment or multiple establishments?

Single establishment

Multiple establishments

Was a full-time remote work arrangement made?

Yes

Primary Indicator: If not for the remote work agreement, would the employee physically report to an establishment?

Yes

No / Unknown

Secondary Indicators

If there was no remote agreement, would the employee physically come to a particular establishment to perform employment tasks? Check all that apply:

Would attend in-person meetings (through any method of communication scheduling/requirements)

Would receive work-related materials, assistance, or equipment

Would come in-person to receive instructions from the employer (through any method of communication)

Would be responsible for or supervise employees as indicated in their contract

Would report to an establishment based on the nature of the duties performed

Outcome A: Employee physically reports to a single establishment

The Province of Employment (PREM) is where the employee physically reports for work.

Select the province/territory where the employee reports:

Outcome B: Employee physically reports to multiple establishments

The Province of Employment (PREM) is the location of the employer's establishment where the employee spent the most time. If the employee spent equal time at multiple establishments, use the establishment where the employee worked last.

Select the determined province/territory:

Outcome C: Full-time remote, but would otherwise report to an establishment

The Province of Employment (PREM) is where the employee would physically report for work if not for the full-time remote agreement.

Select the province/territory where the employee would report:

Outcome D: Does not report to an establishment

The Province of Employment (PREM) is the employer establishment from which the employee is paid, or where revenue and expenses are incurred for T2 (Business/Corporate Income Tax Return) reporting.

Select the province/territory of the paying establishment:

Outcome E: Employer has no establishment in Canada

Employment is considered in Canada beyond the limits of any province or territory.

Tax Requirements:

Tax Form: TD1
Source Deductions: CPP, EI, Federal Income Tax
Workers' Compensation: Required
ESA: Province/territory where the employee physically performs employment tasks

Province of Employment:

Tax Requirements:

Tax Forms: TD1 and TD1 ()
Source Deductions: CPP, EI, Federal and Provincial Income Tax
Workers' Compensation: Required
ESA: Province/territory where the employee physically performs employment tasks

Province of Employment: Quebec (QC)

Tax Requirements:

Tax Forms: TD1 and TP-1015.3
Source Deductions: QPP, EI, QPIP, Federal and Quebec Income Tax
Workers' Compensation: Required
ESA: Province/territory where the employee physically performs employment tasks

Please send an email to Infoline@payroll.ca including your member number if you require further payroll compliance assistance with determining the province of employment.