The Canada Revenue Agency (CRA) released its Non-Resident Employer Certification program on January 12, 2016.
Canada Regulation 102 requires employers, whether a resident of Canada or not, to withhold and remit withholding tax on any remuneration paid to non-resident employees who provide services in Canada unless a waiver of withholding tax has been issued.
Change This Year
A non-resident employer certification removes the requirement to withhold tax from the salary, wages, and other remuneration the employer pays to non-resident employees. Starting in 2016, if a qualifying non-resident employee is exempt from paying Canadian income tax because of a tax treaty, then the qualifying non-resident employer does not have to withhold and remit tax for that employee. This eliminates the need for non-resident employees to request waivers of withholding. Non-resident employer certification will be valid for up to two calendar years.
Form RC473 must be filed by March 1, 2016, if you wish to make the certification retroactive from January 1, 2016. Any forms received by the CRA after March 1 should be filed at least 30 days before any qualifying non-resident employee starts providing services in Canada.
Nearly ten years after the release of the initial exposure draft, FASB issued ASU 2016-02, Leases - The standard may have been issued, but the conversation about this re-write of legacy guidance has not slowed.
You need to be cautious when entering into a bartering relationship and remember to track everything and the key to accounting for bartering is making sure you still record the income earned and expenses incurred.