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Payroll Tax FAQ

  1. Who is an employer?
  2. What is remuneration?
  1. Who is an employer?

    An individual or corporation who has one or more employees performing work and/or providing services in the NWT.
  2. What is remuneration?

    Includes all payments, and the value of all benefits and allowances, received for work performed and/or services provided. Refer to Sections 5(1), 6 or 7 of the Income Tax Act for applicable definitions.


    Examples of taxable items:

    • Salaries and wages, bonuses, commissions and honoraria
    • Vacation travel assistance
    • Directors' and management fees
    • Employee stock options
    • Contributions by employers to registered retirement savings plans (RRSP)
    • Retiring allowances or severance pay

    Examples of non-taxable items:

    • Income from pensions or superannuation
    • Reimbursement to employees of actual expenses paid on behalf of the employer
    • Employer contributions to registered pension funds or plans (RPF or RPP), group sickness or accident plans, and employee benefit plans
    • Value of clergy residences
    • Income received by individuals who belong to a religious order, and who have taken a vow of perpetual poverty. Employers must deduct the NWT Payroll Tax, at source, and remit to the GNWT according to a schedule provided at the time of registration.