Employment Services

A production company contracts with a non-resident individual and the services are performed under an employer-employee relationship. The non-resident individual is considered to be an employee of the production company. For further information, please refer to Publication RC4110  -  Employee or Self-Employed?.

Payments subject to withholding

Payments made to non-residents who provide services in Canada as employees are subject to the same withholding requirements as those made to resident employees under Regulation 102. These amounts are subject to tax deductions at the graduated rates.

If there is an employer-employee relationship deduction of Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums may be required.

Remitting tax withheld

The payer may be required to remit the tax withheld to the CRA on an accelerated basis, depending on the employer's source deduction history.

Reporting of payments by the payer

If you have paid amounts for employment services, the amount paid must be reported on a T4, Statement of Remuneration Paid. These amounts must be reported even if a waiver or a reduction of the withholding tax has been granted.

For more information see Guide T4001, Employers' Guide - Payroll Deductions and Remittances for more information.

Forms and publications

• RC4110 - Employee or Self-Employed?
• T4, Statement of Remuneration Paid
• T4001, Employers' Guide - Payroll Deductions and Remittances