Need for remote employees
The pandemic has shaken up the traditional workplace arrangements and more people are now considering remote jobs. This means as employers you also have to adjust and explore the possibility of having employees that are not physically located at your company.
Remote employees bring changes to payroll and taxes.
Here is a quick guide on what you need to think about when creating a remote workforce.
Types of employees
This new arrangement might want you to rethink the types of employees that you would be hiring for your business. Should they be full-time employees or contractors? Deciding on the classification will affect taxes, deductions, benefits among other things.
Will you be hiring locally or from different provinces or even internationally? Every location has its own rules and laws about taxes and payroll guidelines.
Different provinces have individual tax rates and the amount of payroll deduction to be withheld is based on employee’s remuneration times the tax rate of the province where the employee works.
Employing from other countries will make this even more complicated. How will you pay them? What are the costs? If you are analyzing these options make sure you are fully educated about your decisions.
Another important thing to keep in mind is that different provinces and countries have different payroll cycles.
In Canada, although it varies by province, the employee is usually paid within the month. You also have to keep in mind things such as payroll tax, healthcare, and unemployment insurance.
Be aware that holidays vary by province as well and you need to adjust your holiday pay based on the location.
We are happy to help with any questions you might have, as well as your accounting, tax, and payroll needs.
Piligrim Accounting Inc. – (416) 514-1741 or email@example.com