Payroll Week Checkup: A Timely Reminder for Cross-Border Workers and Employers

Summary

On September 4, 2026, the Internal Revenue Service issued IR-2026-105, encouraging workers and employers to review their withholding and payroll tax responsibilities ahead of National Payroll Week. The annual reminder frames the start of fall as a natural "paycheck checkup" moment: confirm that Form W-4 elections, addresses, and filing status still reflect current circumstances, and verify that employers are meeting their payroll tax deposit and reporting duties.

The reminder carries extra weight for cross-border taxpayers. Canadians working in the United States — whether commuting on TN status, employed on other work visas, or working remotely for a US employer from Canada — depend on accurate withholding to avoid surprises at filing time. Too little withheld can mean a balance due and penalties; too much means an interest-free loan to the government. Cross-border arrangements also raise questions a standard checkup does not answer: which country's payroll taxes apply, how the Canada-US tax treaty and the social security totalization agreement interact, and when to update withholding after a visa or residency change mid-year. Because the answers depend on individual facts, employers and employees often face distinct obligations that need separate review.

Sources

• Internal Revenue Service — IRS reminder: National Payroll Week is time for a paycheck checkup — https://www.irs.gov/newsroom/irs-reminder-national-payroll-week-is-time-for-a-paycheck-checkup

Our Take

Payroll withholding is a tax issue where a few minutes of review in September can prevent a costly surprise at filing time. We see National Payroll Week as a practical trigger for Canadians employed by US companies, Canadians working in the US on visas, and US employers with Canadian staff to verify that withholding elections match current facts — especially where remote work, cross-border commuting, or mid-year status changes have altered the picture. Cross-border payroll implicates two tax systems and a treaty, so when employment or residence circumstances shift, consult a CPA familiar with Canada-US tax matters rather than waiting for filing season to sort it out.

Disclaimer: This article is general information only and does not constitute tax advice; it should not substitute professional tax counsel. Please consult a licensed CPA for advice specific to your situation.