When is employment income tax-exempt — and what does that actually mean for payroll?

For Indigenous businesses and organizations, payroll can involve considerations that don’t come up in a typical payroll process. Section 87 of the Indian Act provides a tax exemption in certain circumstances — but understanding when it applies and how to handle it correctly through payroll isn’t always straightforward.

Join Alice Maracle, Finance Coordinator at Discovered Intelligence and Director of Finance at the New Grocery Movement, for a practical, plain-language discussion on Section 87 and what payroll administrators and managers need to know when paying First Nations employees.

With experience leading initiatives across payroll compliance, systems integration and operational governance, Alice will break down the rules, common areas of confusion and practical payroll considerations to help you approach Section 87 with greater confidence.

What we’ll cover

• Understanding Section 87: What the tax exemption is and when it may apply to employment income
• Determining whether income is exempt: The factors and connecting considerations that can affect an employee’s tax treatment
• Applying it through payroll: What payroll teams need to consider when processing exempt or partially exempt employment income
• Forms and documentation: Key information and records payroll teams should be aware of
• Common payroll challenges: Practical examples, common areas of confusion and how different scenarios may be treated

What you’ll take away

You’ll leave with a clearer understanding of how Section 87 applies to employment income, what to look for when determining an employee’s tax treatment, and practical considerations for processing payroll with greater confidence.

Who should attend?

This session is designed for payroll administrators, payroll managers, finance teams and business leaders at Indigenous businesses and organizations, as well as accountants, bookkeepers and payroll providers supporting First Nations communities.

Section 87 can be complex. Your payroll process doesn’t have to start with guesswork.

Learn more about how Employment Hero can help simplify payroll.