US/Canada Taxes for Cross border Employees

[VOBuckeye]

All,
I live in Windsor and work in Detroit for an automotive company. Just this month, my US employer started a shadow payroll that pays Canada taxes as well US taxes for all cross border employees living in Canada. They track days spent working in US or Canada.
The problem is that most people are seeing a reduction in their take-home pay, 20% or 50% reduction in some cases. My pay was down 20% and I suspect double taxation.

Have any of you encountered this? and how can I make sure that I'm taking the same amount home before they started all this mess?
Thanks

 

[canprofus]

Can you not do the math with gross pay mentioned in your payslip and see if it is due to taxes or anything else?

Btb, any reason for your employer doing this new Canadian payroll arrangement?

 

[VOBuckeye]

Can you not do the math with gross pay mentioned in your payslip and see if it is due to taxes or anything else?

Btb, any reason for your employer doing this new Canadian payroll arrangement?

There's a line for Canada commuter tax and gives the amount....huge amount. I've reached out to ask what the exact breakdown is. Doesn't seem they took into account any retirement plan, medical before taxing.

Employer wants to fulfill their tax obligation to both countries. There were some complications during last year's filings because most people worked from home for US employers but were in Canada due to border closing. CRA provided guidance to file as in previous years, not sure they will do the same for 2021.

 

[canprofus]

if you have been taxed more, you will get it back from the respective agency (IRS or CRA). But tracking days and deducting taxes for each country seems like an extremely complicated set up.

 

[VOBuckeye]

if you have been taxed more, you will get it back from the respective agency (IRS or CRA). But tracking days and deducting taxes for each country seems like an extremely complicated set up.

I would much rather have the money upfront because of living expenses than wait to claim it during tax filing.
Yes, tracking days is cumbersome. The accounting firm created a tracking calendar for 2021 where we go online and input location and if worked/vacation/sick.

 

[canuck78]

I would much rather have the money upfront because of living expenses than wait to claim it during tax filing.
Yes, tracking days is cumbersome. The accounting firm created a tracking calendar for 2021 where we go online and input location and if worked/vacation/sick.

Assume one of the issues may be that you were working in Canada and there are Canadian offices of the company. The fact that you are now working in Canada more would likely account for a reduction in pay. Would speak to HR for clarification.