TD1 Tax Credits for Remote Employees

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As the world changes, more employers are allowing their teams to work remotely, and some have even transitioned entirely to a remote-first workforce.

If you fall into this category, you may be wondering which provincial TD1 Form you should provide to your remote employees. You're in the right place because this article explains what you need to know.

 

Which Provincial TD1 Form Should I Provide Remote Employees?

According to the CRA, where the employee should be taxed depends on whether your employee physically reports for work at your establishment or "place of business:"

  • If the employee doesn't work remotely and physically works within an office, they're subject to that province's taxes. 
  • If the employee works remotely, the employee should be paid from the head office location. The remote worker is subject to the same provincial taxes as the head office.

Employees will file their taxes in the province where they live. If their home province taxes are higher than those of their employer's reporting office, they should consider requesting additional taxes to be deducted; otherwise, they will have to pay more to the CRA at the end of the year.

Choosing the correct office

It's important to ensure the employee is assigned to the correct office location in their Employee Profile under Job and Pay because Humi will tax based on the reporting office location recorded in the system.

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