Changing an employee’s province of employment (POE) is not a simple action due to the potential for multiple tax forms. The first step is determining whether or not a change of POE is required. If you confirm that it must be changed, then it can be done in a couple of ways.
Confirming the Province of Employment
Firstly, you’ll need to confirm that the employee’s POE does need to be changed. Usually, where the employee physically works is not necessarily their POE. Instead, it may simply be where they originally work from, or where the payroll or payroll department is located. You can double check if you need to change the POE by contacting the CRA, or following the article below:
Changing the Province of Employment
If you have checked with the CRA and confirmed that you do need to change the employee’s POE, we have a couple of options for you to do this.
*Please note that these options DO NOT apply if you are changing to/from Quebec, as this will require additional steps. Please contact us for more information if this is the case for you.
You can hire one of our techs to change it for you. As it needs to be manually done on our end, there is a cost of $159 per employee to complete this action. They will rewrite the coding for the employee, but will not take into consideration any tax tables previously used. As a result, the employee would need to work out any differences at tax time, as they would’ve been previously paying tax for another province. To proceed with this option please contact us.
Instead, you can create a new employee and copy all of the YTD information over to the new profile. Like option 1, this won’t take into consideration any tax tables previously used, so the employee would still need to work out any differences at tax time. To proceed with this option, follow the instructions below:
1. Create a YTD Summary report to easily enter in the current data to the new employee.
Go to Reports >Yearly> YTD Summary
Click "Create New Report"
2. Go the employee you need to change and modify their YTD to zero everything out.
Go to Employees > Edit Profile > Financial YTD > Modify
Enter ‘0’ in each field
3. Set this employee's SIN to 999 999 998 and Save.
4. Terminate the employee and create an ROE. Do not send it to Service Canada, but keep it on file as you may need it if the employee is terminated.
5. Add the new employee with correct SIN, POE and updated YTD information.
Go to Employees > Add Employee
Financial YTD > Update all information based on YTD Summary report from step 1
6. Create a new YTD Summary report to capture the changes.
7. Run payroll as normal.
They will need a new email for PayChequer. If you input the same email for them it will always link to the first ‘employee’ with that email. Option 1 negates this scenario, but if you choose option 2 then you can also have the employee sign in with their employee number rather than email or input a different email for them. Pay slips will still be available in their original PayChequer account but they should use the new one for going forward.