--00000000000061845d0649023b91 Content-Type: multipart/alternative; boundary="00000000000061845c0649023b90" --00000000000061845c0649023b90 Content-Type: text/plain; charset="UTF-8" Content-Transfer-Encoding: quoted-printable Hi George, In response to your question regarding Nova Scotia annual returns: 2025 was the first year we registered in the province, and the year-end return has already been submitted online. I am hesitant to close the account at this time as we may have employees there in the future. I will wait for follow-up from Nova Scotia regarding the pending questions before we make a final decision. Thanks, *Germaine Daniels* Director Payroll | TheKey Email: germaine.daniels@thekey.com Mobile: 562.784.1800 On Thu, Jan 22, 2026 at 9:13=E2=80=AFAM Singh, George = wrote: > Hi Germaine, > > > > Hope you are doing well. > > > > Generally, the obligation of an employer with respect to employee source > deductions for federal and provincial income taxes as well as CPP and EI > premiums depends upon the employee's =E2=80=9Cprovince of employment=E2= =80=9D (*POE*). > Based on this, different withholding tax rates may apply (i.e., ON or N= S > versus Quebec rates), and certain other payroll tax obligations may or ma= y > not apply as well. > > > > The POE is determined based on the establishment of the employer at which > the employee reports to work, based on factors discussed in further detai= l > below. The term =E2=80=9Cestablishment=E2=80=9D (for payroll tax purposes= ) has a > substantively similar meaning to =E2=80=9Cpermanent establishment=E2=80= =9D (=E2=80=98*PE*=E2=80=99) (for > income tax purposes) and in practice they are used somewhat interchangeab= ly > (with the primary distinction being that an =E2=80=9Cestablishment=E2=80= =9D can be > short-term/temporary). This generally comprises =E2=80=93 amongst other t= hings =E2=80=93 a > fixed place of business (such as an office) or an employee or agent with > general authority to contract on behalf of the company. There is no minim= um > amount of time the employee has to report to the establishment, and the > establishment to which they report is not necessarily the place where the= y > are physically located or perform their work. I am not certain if TheKey > may previously had employees working from home offices in other provinces > or whether in fact there may have been physical offices outside of Ontari= o, > BC, MB, or Quebec. For the amalgamation process, there are notification > requirements to be issued based on which provinces/accounts the business > was registered in. Going-forward, the various jurisdictions will advise = as > to the accounts to continue going-forward. If you have employees in any > locations for which it is determined payroll accounts may be required, th= e > registrations will need to be requested accordingly. > > > > The Canadian tax authorities normally take the view that a remote > employee=E2=80=99s home office is usually *not* a PE of the employer