"In February 2020, working from home and hybrid models were not top of mind. Today, flexibility is an expectation and key differentiator for businesses competing for talent in a limited pool. It's not a huge leap to think that the ability to work not just from home but from anywhere will be next – but doing so comes with significant payroll complications for both employers and employees,” declared last year Peter Tzanetakis, President of the National Payroll Institute

One of the payroll complications that may arise when offering flexibility to employees is overtime pay. Employees who work flexible hours that exceed their regular working hours may be entitled to overtime pay. Employers will need to track employees' hours and ensure they are paid accordingly.

It is important that employers keep detailed records of employees' hours worked, vacation entitlements, sick leave, and other relevant information to ensure they comply with employment standards legislation. If you have any questions about these subjects, we encourage you to post them on The 17th Floor forum or contact other payroll professionals through our Member Directory to get mentorship.

Main Reasons for Choosing Flexible Working Arrangements

Peter Tzanetakis’ point about Canadians being able to relocate thanks to the current flexibility it’s an interesting one because not all of them moved to warmer places after all. According to the National Payroll Institute, 90% of Canadians continued to work from their home province throughout the pandemic. Moreover, those who relocated tended not to stray too far from home, with 73% remaining in Canada and 26% in the United States.

The same study found that when it came to relocating to another province or country, these were the main reasons:

  • 46% - the opportunity to experience another part of the country or world

  • 38% - saving money

  • 29% - improved work-life balance

  • 22% - investing in property in a different market

  • 21% - living closer to family and friends

Regardless of the reason, it is paramount that the employee declares if they leave the country. If an employer is unaware, they will likely continue remitting income tax to the Canada Revenue Agency or Revenu Québec. Meanwhile, the employee may be required by the country they are actually in to pay local income tax there as well, which can significantly reduce how much money they have left to live on.

Did you or someone you know take advantage of the post-pandemic flexibility and relocate somewhere else? Tell us in the comments section below.


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