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The Northwest Territories and Nunavut each levy a territorial payroll tax on employee remuneration. The rules for who is subject to this tax and when it applies differ between the two territories. For details, refer to the official territorial government resources:

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How it works in Nmbr

When territorial payroll tax is enabled for a work assignment, Nmbr calculates the tax on all remuneration that is subject to federal income tax. This amount appears as a Territorial Income Tax statutory withholding line item on the pay stub. Territorial payroll tax is not remitted by Nmbr. The employer is responsible for registering with the territorial government and remitting the tax. The liability report will reflect the territorial payroll tax amounts owed.

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Enabling territorial payroll tax

Territorial payroll tax is controlled through Tax Properties at the work assignment level. Each territory has its own tax property type:
TerritoryTax Property Type
Northwest Territoriesca::nt::territorial_payroll_tax
Nunavutca::nu::territorial_payroll_tax
To enable territorial payroll tax for an employee, create a tax property on their work assignment with enabled set to true.
Territorial payroll tax is independent of the employee’s Province of Employment. An employee with a Province of Employment set to Ontario can still be subject to territorial payroll tax if they have the tax property enabled on their work assignment.

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Disabling territorial payroll tax

To stop calculating territorial payroll tax for an employee, set the effective_to date on the tax property. The tax will no longer be calculated for payrolls with a pay date after the effective_to date.

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Reporting

The territorial payroll tax amount is included in the liability report, showing the amounts owed to each territorial government. Since Nmbr does not remit this tax, it will appear as a client deposit responsibility on the report.