At a glance
- The province of employment decides which provincial tax tables and TD1 form apply. It's usually where the employee reports for work, not where they live.
- An employee who doesn't report to a workplace uses the province of the employer location that pays them.
- In PayCub, it's the Province of Employment field on the employee profile, separate from their home address.
How the CRA decides
| Situation | Province of employment |
|---|---|
| Reports for work at your establishment | The province where they report for work (even for a short time). For remote workers, where they're considered attached under the CRA's remote work policy. |
| Reports to establishments in more than one province | Where they spent the most time in the pay period. If it's equal, where they worked last. |
| Doesn't report to any establishment | The province of the establishment that pays their salary. |
| Pension, retiring allowance and similar non-employment income | The recipient's province of residence. |
Source: CRA, determine the province of employment.
What it affects
- Provincial income tax. Which province's tax rates and credits are used.
- The provincial TD1. The employee fills out the TD1 for their province of employment.
- Quebec. Employees whose province of employment is Quebec pay QPP and QPIP instead of CPP, and have provincial tax handled by Revenu Québec.
When the province of employment is different from where the employee lives, the tax withheld may not match what they owe in their home province. They settle the difference on their personal tax return.
Employment standards are a separate question. Vacation pay, holidays and overtime come from employment standards law, which generally follows where the work is done. If an employee works in more than one province, check with the employment standards offices involved (see Employment standards vs CRA rules).
In PayCub
- Province in the Address section is part of the employee's home address, shown on pay stubs and year-end forms.
- Province of Employment (in Payroll Information) is what PayCub uses for provincial tax tables. It also sets the suggested vacation pay minimum for new employees.
- PayCub doesn't calculate deductions for employees whose province of employment is Quebec.
If an employee's province of employment changes, for example they move to an office in another province, update the field before their next pay run.