Instructions
Donovan Ramsey, the Chief Financial Officer of LevelUp Business Consulting, has advised you that the company is considering closing its Calgary, Alberta office effective at the beginning of the next calendar year and transitioning the staff of that location to permanent work from home employees. The employees home offices would not be considered a permanent establishment of the employer.
Eight staff members currently report to the Alberta office, and the total payroll for that location is $775,000.00.
The organization’s head office and payroll department are in Mississauga, Ontario. The current Ontario payroll is $4,750,000.00.
You have been asked to prepare an analysis showing how closing this permanent establishment in Alberta will impact the employee’s coverage for provincial healthcare and the organization’s payroll expense for provincial health taxes. Be specific in your analysis by providing a comparison of current versus projected costs that may result from this change.
Prepare your response (450 - 600 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.
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 Canada Revenue Agency’s Employers' Guide - Payroll Deductions and Remittances – T4001, state the URL where the information can be found, https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4001.html and the page number, if applicable
- 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)