Ask an Expert
Resident of Saskatchewan works in Manitoba:
Expert: John R Mott
Tami asked:
If I report to Manitoba but have an office in Saskatchewan do I pay the personal tax credits in Manitoba or Saskatchewan. I am a resident of Saskatchewan but the office I am paid out of is in Manitoba.
John R Mott answered:
Since you report to work in Manitoba, your employer is required to base your payroll deductions on the Man., payroll tables and tax credits. However, when you prepare your personal tax return for the year, you must use the Saskatchewan tax package and claim the tax credits available to Sask., residents.
Depending on the relative Man., and Sask., tax rates and credits applicable to your circumstances and income level, the difference will be resolved on your tax return as a refund or additional amount owing.
If this difference is resulting in a material excess withholding of payroll tax at source, you do have the option of applying directly to the Canada Revenue Agency for a letter of authority to reduce your withholdings.
About the author
John Mott is a chartered accountant and tax specialist with a private practice in mid-town Toronto. He provides tax, accounting and advisory services to individuals and small businesses. He may be visited online at: johnmott.com.