Defence Team: Province of Work Taxation and Teleworking During COVID-19

June 19, 2020 – Defence Stories

For employees working from home due to the COVID-19 pandemic, the Canada Revenue Agency and Revenu Québec have confirmed that the province of work for taxation purposes will not change.

This means that if you are currently teleworking from your home in one province, and you normally report to an office located in a different province, the province used to calculate your payroll deductions at source continues to be your normal work office location. These deductions include Federal and Provincial/Territorial income taxes, Employment Insurance (EI), Québec Parental Insurance Plan (QPIP), Canada Pension Plan (CPP) and Québec Pension Plan (QPP).

The same policy applies to designated paid holidays as outlined in your collective agreement.

Example:

You normally report to work at an office located in Quebec, however, during the pandemic you are teleworking from your home in Ontario.

• Your deductions at source will continue to be based on Quebec provincial rates.
• The Quebec provincial holiday on June 24 will also continue to be your designated paid holiday, and the Ontario provincial holiday will not apply.

Your province of work will not change to Ontario due to the COVID‑19 situation.

Read about how public service pay works for more information and refer to the collective agreements for public service for more information on designated paid holidays.