Non-Resident Employers’ Tax Obligations 

The blog from GYTD CPA discusses the obligations of foreign employers with employees working in Canada. It highlights that these employers are generally required to withhold and remit source deductions from the wages or salary of an employee in Canada. This is necessary even if the employee is exempt from tax in Canada. 

The blog also references the Canada-U.S. Tax Convention, which stipulates specific conditions under which employment income of a U.S. resident is not taxable in Canada, and vice versa. These conditions include: 

• The income being less than $10,000 CAD from any source. 
• The employee spending less than 183 days in Canada and the employment cost not being paid by or on behalf of a business with a Canadian permanent establishment. 

This information is crucial for non-resident employers to understand their tax obligations in Canada.