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Tax in a different Province

Tax in a different Province

Old Jan 18th 2020, 1:22 am
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Default Tax in a different Province

Hi guys,

Am I able to figure out my income using a simple tool like below... and choose BC for Province or territory.
https://simpletax.ca/calculator
I plan to live in BC, but my employer will be based on Ontario.

Many Thanks.
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Old Jan 18th 2020, 12:10 pm
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Default Re: Tax in a different Province

Originally Posted by eversmannx View Post
Hi guys,

Am I able to figure out my income using a simple tool like below... and choose BC for Province or territory.
https://simpletax.ca/calculator
I plan to live in BC, but my employer will be based on Ontario.

Many Thanks.
bear in mind that tax calculator doesn’t show all the deductions you might be entitled to.

Last edited by Engineer_abroad; Jan 18th 2020 at 12:16 pm.
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Old Jan 19th 2020, 3:25 pm
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Default Re: Tax in a different Province

Originally Posted by Engineer_abroad View Post
bear in mind that tax calculator doesn’t show all the deductions you might be entitled to.
Thank you. maybe you can refer me to a better site/calculator? my main question however was about paying tax in a different state though... (I will be in BC, and employer in Toronto)
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Old Jan 19th 2020, 4:15 pm
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Default Re: Tax in a different Province

Originally Posted by eversmannx View Post
Thank you. maybe you can refer me to a better site/calculator? my main question however was about paying tax in a different state though... (I will be in BC, and employer in Toronto)
unlikely to find it be as they are quite complex. You should probably have a read of the full
tax guide for the province you have to pay tax in.

regards your other question does your employer have an office or operation in B.C.? My understanding is you pay tax in your province of residence but I can see there being an issue with things like MSP payments, which employer pays to B.C. provincial government. Hopefully someone else will know more than me.
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Old Jan 19th 2020, 5:00 pm
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Default Re: Tax in a different Province

Living in BC while working in Ontario could cause you issues when paying things like WSIB contributions - 1.88% of earnings over $100 (Ontario) MSP contributions (BC).
This is the official word for employers - so if you are working remotely and your employers are paying you from Ontario you will have to pay Ontario and Provincial deductions (EI, CPP, WSIB, Taxes) and then also submit a tax return in BC and pay your MSP contributions. Something to consider - you will need to use Ontario for deductions and then work out what your MSP contribution would be based on your nett income, I presume.

(On a side note, if you are a remote worker being paid by an Ontario registered company then the hourly rate for home workers applies - $15.40 an hour https://www.ontario.ca/document/your...-0/homeworkers )

https://www.canada.ca/en/revenue-age...ax-tables.html
If your employee does not have to report to your establishment in person (for example, the employment contract says the employee works from a home office), the employee’s province or territory of employment is the one from where your employee’s salary and wages are paid. This will normally be the location of your payroll department or payroll records.
Province of employment | The Tax Issue


Last edited by Siouxie; Jan 19th 2020 at 5:14 pm.
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Old Jan 20th 2020, 6:21 am
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Default Re: Tax in a different Province

Thanks. Yes, my employer doesn't have a branch in BC, so it will be the remote working scenario you suggested. It all sounds rather complicated. Hopefully my employer can give me a cleaner picture.
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Old Jan 21st 2020, 7:47 pm
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Default Re: Tax in a different Province

Originally Posted by eversmannx View Post
Thank you. maybe you can refer me to a better site/calculator? my main question however was about paying tax in a different state though... (I will be in BC, and employer in Toronto)

www.taxtips.ca

is the one I use
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Old Jan 30th 2020, 12:03 pm
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Default Re: Tax in a different Province

Originally Posted by Siouxie View Post
Living in BC while working in Ontario could cause you issues when paying things like WSIB contributions - 1.88% of earnings over $100 (Ontario) MSP contributions (BC).
This is the official word for employers - so if you are working remotely and your employers are paying you from Ontario you will have to pay Ontario and Provincial deductions (EI, CPP, WSIB, Taxes) and then also submit a tax return in BC and pay your MSP contributions. Something to consider - you will need to use Ontario for deductions and then work out what your MSP contribution would be based on your nett income, I presume.

(On a side note, if you are a remote worker being paid by an Ontario registered company then the hourly rate for home workers applies - $15.40 an hour https://www.ontario.ca/document/your...-0/homeworkers )

https://www.canada.ca/en/revenue-age...ax-tables.html

Province of employment | The Tax Issue

Thanks for the details again. I've been reading up on it a bit more (and hopefully employer will also give me a better breakdown of take home pay before i consider and accept an offer).

From the 2nd link...
As a result, you will probably have a large refund for federal purposes and taxes due on your Quebec return.
Does this mean... overall I won't lose out? larger refund or not... my worry is it's a double whammy.

I also learned MSP is free from 2020. If I am on a work permit, how does it work out?

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Old Jan 30th 2020, 12:24 pm
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Default Re: Tax in a different Province

Originally Posted by eversmannx View Post
I also learned MSP is free from 2020. If I am on a work permit, how does it work out?
im not sure where you read this. All BC residents must enroll in MSP. What changed recently was that the worker no longer pays the premiums but the employer, however as your employer isn’t in BC they won’t have to pay it, this could mean that they pursue you for the premiums.
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Old Jan 30th 2020, 12:30 pm
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Default Re: Tax in a different Province

Originally Posted by Engineer_abroad View Post
im not sure where you read this. All BC residents must enroll in MSP. What changed recently was that the worker no longer pays the premiums but the employer, however as your employer isn’t in BC they won’t have to pay it, this could mean that they pursue you for the premiums.
I heard from friends who live in BC. That's probably what they meant.
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Old Feb 6th 2020, 4:58 am
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Default Re: Tax in a different Province

My husband commuted for 3 years to his job in Alberta (fly in/fly out). We lived in Nova Scotia at the time. His wages were paid out of Alberta so he was taxed accordingly by that province.

When we filed his yearly taxes at home in NS he had to pay a tax bill of an additional $6000 per year because income tax in NS is a much higher rate than Alberta (17.5% in NS compared to 10% in AB).

Aside from all the travel, we’d had enough of the high taxes so we moved to Alberta! Love it here and don’t feel ripped off.
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Old Feb 6th 2020, 7:34 am
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Default Re: Tax in a different Province

Originally Posted by Cookie View Post
My husband commuted for 3 years to his job in Alberta (fly in/fly out). We lived in Nova Scotia at the time. His wages were paid out of Alberta so he was taxed accordingly by that province.

When we filed his yearly taxes at home in NS he had to pay a tax bill of an additional $6000 per year because income tax in NS is a much higher rate than Alberta (17.5% in NS compared to 10% in AB).

Aside from all the travel, we’d had enough of the high taxes so we moved to Alberta! Love it here and don’t feel ripped off.
Thank you! That's a very helpful example. So in my case of living in BC, while working for a company in ON --- I assume it's a better scenario as tax rate is lower in BC compared to ON if anything...
How about the health cover? If your husbands company paid in AB, how did that work out for you guys in NS...
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Old Feb 12th 2020, 9:30 pm
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Default Re: Tax in a different Province

The Ernst & Young tax calculator is handy for rough calculations for personal tax info. The link below is for 2020.

https://www.eytaxcalculators.com/en/...alculator.html
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Old Feb 12th 2020, 10:03 pm
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Default Re: Tax in a different Province

Originally Posted by Cookie View Post
Aside from all the travel, we’d had enough of the high taxes so we moved to Alberta! Love it here and don’t feel ripped off.
Unfortunately Alberta is now facing huge public sector cuts from sustained unrealistically low taxation. You might not feel ripped off today but you might end up paying more in the long run as you have to pay more out of pocket for things like private schools when public ones are underfunded and private healthcare when public care is not available, just something to consider. Low taxes aren't everything, though I understand the desire to move to Alberta if the job is there.
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