Recently Canada Revenue Agency issued Form RC473, Application for Non-Resident Employer Certification – and with it defined a path for U.S. employers whose employees travel to Canada to significantly reduce the associated payroll compliance effort.
Not applying for certification in the program means the current, painful, frequently audited and costly compliance requirements continue to apply to you as an employer. Conversely, opting into the program unshackles your organization – provided that you sign-up for maintaining what could be an (almost) work-free process. Nice, eh?
One of the stipulations of the new program is that regarding withholding tax, Canada requires detailed employee travel tracking.
Employee Tracking Requirements
Under the new program, CRA requires employers to implement an employee tracking process, in order to record the number of days each qualifying non-resident employee is either working in Canada, or present in Canada, as well as the income attributable to those days.
How Blackspark can help
At Blackspark, our objective is to help you address business travel payroll compliance with minimal impact to your existing business operations. We are already doing exactly that for some of world’s largest companies. Specifically, for CRA’s Nonresident Employer Certification Program, we:
track business travelers on a proactive basis
maintain reporting across the organization of employees who are resident in a country that has a tax treaty with Canada
execute internal control for evaluation of each employee’s remuneration being exempt from Canadian tax under the tax treaty
determine if each employee works in Canada for less than 45 days in the calendar year that includes the time of payment or is present in Canada for less than 90 days in any 12 month period that includes the time of payment
maintain the workflow of application for Canada Revenue Agency tax identification number for non-residents (if one is required for your employees)
If you would like to learn more about how we can help your organization comply with CRA’s new non-resident employer certification program, contact us. We’ll be happy to walk you through the details.