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Question
Donovan Ramsey, the Chief Financial Officer of LevelUp Business Consulting, has advised you that the company is considering closing its Calgary, Alberta office 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 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.
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