Expatriates still employees when calculating health tax

Court decides IBM Canada remunerated employees overseas, even though foreign affiliate paid
By Sarah Dobson
|hrreporter.com|Last Updated: 07/14/2008

Workers on temporary assignment are still considered employees, so their employers must pay employer health tax on remuneration. That’s what IBM Canada was told recently by the Ontario Court of Appeal.

The case concerns employees who take overseas assignments at one of the company’s affiliates. While there, they are referred to as expatriates by IBM and paid by IBM Canada, which is then reimbursed by the affiliate.