Pay statement
Show the period, hours paid, wage rate, deduction details, and the actual sum received. Give a detailed calculation of wages, bonuses, and living allowances on request.
See details →NORTHWEST TERRITORIES PAYROLL RESOURCES · NT · REVIEWED 2026-10-03
last verified 2026-10-03Northwest Territories Payroll &Pay Statement Guide
Review the Northwest Territories pay-statement rule, the employee’s right to a detailed calculation, pay-period limits, the September 1, 2026 minimum wage, the 2% NWT payroll tax, and CRA withholding. Prepare a Canadian Pay Run for a small team or create an individual pay statement when that is all you need.
Written statement with each paymentThe statement shows the period, hours paid, wage rate, deductions, and the amount the employee receives.
2% NWT payroll taxEmployers withhold a 2% territorial payroll tax from employees who work in the NWT.
Reviewed 2026-10-03Checked against current Government of the Northwest Territories and CRA sources.
AT A GLANCE
What distinguishes Northwest Territories pay-period records
Section 19 of the Northwest Territories Employment Standards Act requires employers to give employees a written statement showing the period the wages cover, the number of hours paid, the wage rate, the details of deductions, and the actual sum the employee receives. On request, the employee is entitled to a statement explaining how the wages and any bonus or living allowance were calculated. A pay period may not exceed one month, and wages are paid within 10 days after the pay period ends.
Minimum wage
The NWT minimum wage is $17.20 per hour from September 1, 2026, up from $16.95.
View the September 1, 2026 increase →NWT payroll tax
A 2% tax on employment income earned in the NWT. Employers withhold it from employees’ pay and remit it to the Government of the Northwest Territories.
View payroll tax for employers →Workers’ compensation
NWT employers register with the Workers’ Safety and Compensation Commission (WSCC) and pay employer-funded assessments.
Visit the WSCC →TERRITORY PAYROLL OVERVIEW
What makes the Northwest Territories different from other pay-statement jurisdictions
The Northwest Territories statement covers five core items. Section 19(2) adds a second, on-request layer: the employee can ask for a statement explaining how the wages and any bonus or living allowance were calculated. That detailed calculation is owed on request and is not a field on every routine statement.
The Act calls for a written statement. The official text retrieved for this review did not include an electronic-delivery condition or a statutory-holiday-hours field, so this page does not state either. Section 50 requires employment records and records of hours of work, and section 50(6) sets the retention rule. Confirm the retention period with NWT Employment Standards before relying on a fixed figure.
The NWT payroll tax is unusual. It is a 2% tax on the employee’s employment income, not an employer health tax. Employers with a fixed place of business in the NWT register, withhold the tax from pay, and remit it on a schedule based on payroll size. Because it is an employee deduction, it should appear on the statement as a separate deduction.
PAYROLL REQUIREMENTS CHECKLIST
The Northwest Territories requirements checklist
When a statement is required
Give a written statement with each payment of wages. Use pay periods of no more than one month and pay within 10 days after the period ends.
Information to include
The period for which wages are paid; the number of hours paid; the wage rate; the details of deductions; and the actual sum the employee receives.
On request
If the employee asks, provide a statement explaining how the wages and any bonus or living allowance were calculated.
Other employer obligations
Keep section 50 employment and hours records for the period the Act requires. Withhold and remit the 2% NWT payroll tax, CRA source deductions, and WSCC assessments separately from the statement rule.
PAYROLL RECORDS IN PRACTICE
How the Northwest Territories treats the statement after payday
Delivery method
The Act requires a written statement. The official text retrieved for this review did not set an electronic-delivery condition. If you deliver electronically, use a method the employee can open privately and keep.
Retention
Keep employment records and records of hours of work under section 50. Confirm the section 50(6) retention period with NWT Employment Standards. Keep payroll-tax records for the period the Department of Finance requires.
CRA WITHHOLDING — PLUS THE 2% NWT PAYROLL TAX
Northwest Territories withholding and employer payroll costs
NWT employers deduct federal and NWT income tax, CPP contributions, and EI premiums and remit them to the CRA. They also withhold the 2% NWT payroll tax and remit it to the Government of the Northwest Territories. WSCC assessments are an employer cost and are not deducted from employee pay.
NWT income tax through the CRA
NWT tax is calculated with federal tax using the CRA tables or T4127 formulas. The CRA did not change NWT values in the July 1, 2026 edition.
NWT payroll tax
2% of employment income earned in the NWT, withheld from pay. Register within 21 days of first paying remuneration. Remit monthly, quarterly, semi-annually, or annually depending on annual payroll, by the 20th day of the month after the reporting period. The annual return is due February 28.
WSCC
Employer-funded assessments based on industry rate and assessable payroll.
Income tax (CRA)
Outside Quebec, employers withhold federal and provincial or territorial income tax together and remit both to the CRA. Use the CRA payroll deductions tables (T4032), the Payroll Deductions Online Calculator (PDOC), or the T4127 formulas that apply to the pay date. For 2026, the lowest federal rate is 14% and the federal basic personal amount is up to $16,452.
Canada Pension Plan (2026)
For 2026: basic exemption $3,500; maximum pensionable earnings $74,600; employee and employer each contribute 5.95%, up to $4,230.45. The second additional contribution (CPP2) is 4% each on earnings from $74,600 to $85,000, up to $416.
Employment Insurance (2026)
For 2026, maximum insurable earnings are $68,900. The employee premium is 1.63% of insurable earnings, up to $1,123.07. The employer pays 1.4 times the employee premium (2.28%), up to $1,572.30, unless it qualifies for a reduced rate.
Remittances, slips, and ROEs
Regular remitters send source deductions to the CRA by the 15th day of the month after the deductions were made. Accelerated and quarterly remitters follow different schedules. Employers also prepare T4 slips for the year and issue a Record of Employment when an employee has an interruption of earnings.
i
CPP and EI amounts are 2026 figures. Federal and provincial withholding values can change mid-year. The CRA issued a July 1, 2026 edition of T4127 (123rd edition) that changed British Columbia, Newfoundland and Labrador, and Prince Edward Island. Use the edition that applies to the pay date.
LOCAL AND COVERAGE CONSIDERATIONS
Northwest Territories payroll is driven by territorial and federal rules
The primary sources reviewed for this page did not identify a municipal minimum wage or municipal payroll tax that changes payroll in Yellowknife, Hay River, Inuvik, or other NWT communities. The territorial payroll tax applies by work location, not by community.
1
Yellowknife and other communities
Apply the territorial minimum wage, statement, and payroll-tax rules. Municipal business licensing is separate from payroll.
2
Employees who also work outside the NWT
The NWT payroll tax applies to employees who work in the NWT, wherever they live. An employee who normally works in the NWT (more than 50% of their time for the same employer in a year) owes the tax on all employment earnings from that employer for the year.
3
Federally regulated employers
Federally regulated employers in the NWT follow the Canada Labour Code. The federal minimum wage is $18.15 per hour from April 1, 2026, which is higher than the NWT rate. The federal rule requires the higher of the two.
4
Province or territory of employment for CRA withholding
For CRA withholding, the province or territory of employment generally depends on the employer establishment where the employee reports for work. Fully remote employees are assessed under the CRA’s remote-work policy.
A SOURCE-BACKED WORKFLOW
A source-backed workflow for Northwest Territories payroll records
1Confirm coverageConfirm the employee is under the NWT Employment Standards Act and register for payroll tax if you have a fixed place of business in the NWT.›
2Record hoursCapture hours paid and any bonus or living allowance.›
3Calculate deductionsApply federal and NWT income tax, CPP, EI, and the 2% NWT payroll tax.›
4Generate the statementShow the period, hours paid, wage rate, deduction details, and the actual sum received.›
5Pay, remit, and retainPay within 10 days after the period ends, remit payroll tax on your schedule, and keep section 50 records.›
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OFFICIAL SOURCES USED FOR THIS PAGE
Official sources used for this page
01
GNWT Justice · Employment Standards Act
Section 13 pay periods, section 19 pay statements, and section 50 records (existing source link retained).
02
GNWT Education, Culture and Employment · Employment Standards
Territorial employment standards office (existing source link retained).
03
GNWT · NWT minimum wage set to increase Sept. 1, 2026
$17.20 from September 1, 2026.
04
GNWT Finance · Payroll tax for employers
Registration, withholding, remittance schedule, and annual return.
05
GNWT Finance · Payroll tax for employees
2% rate, taxable income, and exemptions.
06
Workers’ Safety and Compensation Commission
Employer registration and assessments for the NWT and Nunavut.
07
Canada Revenue Agency · T4127 payroll deductions formulas
2026 federal and NWT withholding formulas, CPP, and EI.
RESEARCH & REVIEW
Built from primary sources. Reviewed for accuracy.
This page is built from primary Northwest Territories and federal sources and is periodically reviewed against current agency guidance. We use the Employment Standards Act, GNWT Finance payroll-tax guidance, GNWT news releases, WSCC resources, and CRA payroll guidance whenever available.
FREQUENTLY ASKED QUESTIONS
Northwest Territories pay-statement FAQ
What must a Northwest Territories pay statement show?
The period the wages cover, the number of hours paid, the wage rate, the details of deductions, and the actual sum the employee receives.
Can an employee ask for more detail?
Yes. On request, the employee is entitled to a statement explaining how the wages and any bonus or living allowance were calculated.
How often must NWT employees be paid?
Pay periods may not exceed one month, and wages are paid within 10 days after the pay period ends.
What is the NWT minimum wage?
$17.20 per hour from September 1, 2026.
What is the NWT payroll tax?
A 2% tax on employment income earned in the NWT. The employer withholds it from the employee’s pay and remits it to the Government of the Northwest Territories.
ACCURATE RECORDS. SUPPORTING EVIDENCE.
Use accurate records, review the preview, and keep the supporting evidence.
Prepare a Northwest Territories Pay Run, review hours, deductions, the 2% payroll tax, and CRA withholding before completion, and keep the applicable NWT sources with your payroll workflow.