New Form for employer/employer joint waiver for non-resident employees

CRA recently announced a new form R02J Regulation 102 Treaty Based Waiver Application – Joint Employer/Employee.

You need to use this form if your employee will not be subject to final tax in Canada under a treaty (for the US normally less than $10,000 per year, for other countries $5,000).

Remember that this is an application, not yet an approval.  Until CRA approves a treaty waiver the regular withholdings for tax, EI and CPP must be withheld from your employees paycheque.

For more details on US residents working in Canada, see my E-publication “Who gets my tax dollars?” link on this page.