Understanding Nunavut Payroll Tax and Reporting Requirements

What is Payroll Tax?

What is Payroll Tax?

Sophie Ball, the Director of Human Resources of your Northern Expeditions company, has advised that the company will be opening an office in Nunavut this year. The office will offer guided northern trips to hunters and adventurers. It expects to mainly employ local guides (40 days over the summer period) but the company will also be periodically bringing in guides from its offices in Alberta, Saskatchewan and Québec. Some of the guides from outside Nunavut may work 10 days, others could work 15 days over the summer depending on the number of bookings; they normally work in their home province for 60 days every year. The average daily rate paid to these guides is $400.

Sophie is asking for information on the Nunavut Payroll Tax. Who pays the tax and how is it calculated? Are there any special considerations or challenges for the calculation of the payroll tax for the guides brought in from Alberta, Saskatchewan and Québec? What are the reporting and remitting requirements during the year? What are the reporting requirements at year-end? Provide examples based on the information provided in the assignment to clarify.

Prepare your response (350 - 500 words) using your name, correct spelling, grammar and punctuation. You will be penalized if you are excessively over or under the suggested word count. Your response to this question must be stated in your own words and should be based on the course material, your experiences, knowledge gained through the course and at least one external government resource. You can copy and paste text from another program into the platform, however you will be unable to copy tables created in Word or Excel. Please utilize the platform’s built-in editing tools to format your text.

Any responses taken directly from the external government resource or course material will not be accepted. Information referenced from the government resource(s) and the course material must be cited. For example: if you are referencing the course material, state the course name, chapter and page number where the information can be found (for example, PF2, 1-1).

This written assignment is worth 7.5% of your final mark. This assignment must be completed and submitted to your instructor by 11:59 a.m. (Central Time) on the due date. It is recommended that you prepare your response using MS Word or a similar word processing software and then copy and paste your response into the ‘Your Response’ field. The ‘Save and Close’ button will save your work and allow you to make future edits. Once you are satisfied with your response, click the ‘Submit’ button. No further edits can be made once your assignment is submitted.