What should an employer do about employees who work in Ontario, but live in another province?
Payroll withholdings (including the OHP) are based on the province in which employees report to work, rather than the province of residence. When employees file their tax returns, their total taxes deducted for the year (including the health premium) will be reconciled against their total tax payable for the year for their province of residence. The CRA has information about this payroll situation on their website.
