CRA indicates that commencing to work remotely shifted the source deduction rates to those of the province of the payroll department

An individual, who previously had reported to work at the PEI office of a national company, with the pandemic commenced working remotely from his PEI home and (as before) was paid by the payroll department in the company’s Ontario office. CRA indicated that, pursuant to Reg. 100(4)(a) - which deems an employee, who is not required to report for work at any establishment of the employer, to report for work at the establishment from which the employee’s salary is paid – the individual would be treated as if he reported to work in Ontario, so that source deductions on the Ontario scale would apply.

Neal Armstrong. Summary of 25 November 2021 CTF Roundtable, Q.10 under Reg. 100(4)(a).