Determine the Province of Employment (POE) – Update
Content has been updated to include the new Canada Revenue Agency (CRA) administrative policy. This change is effective on January 1, 2024.
When you pay employment income such as salaries, wages or commissions, the employee’s province or territory of employment (POE) must be determined so that the proper deductions are withheld. This depends on whether your employee “reports for work” at any of your establishments.
The POE is determined by:
- the type of income
- the residency status of the employee
- the establishment of the employer where the employee reports for work
For income tax, CPP and EI withholding purposes, an establishment of the employer is any place or premises in Canada that is owned, leased or rented by this employer where employees report to work or from which employees are paid. For purposes of the POE, this does not need to be a permanent physical location.
For complete details on changes, including the administrative policy for remote workers, visit Government of Canada.
