Accounting, Payroll & Pension Issues/Hiring an employee in Canada

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Expert: - 10/13/2010


Question
We are a US company head quartered in California.
We used to have an entity in Canada couple of years ago, but it is now closed.
The Management now wants to hire a person in Canada to help with the sales.
That person will be a Canadian resident. He will be the only employee of our US Company in Canada.

Since we do not have Canadian entity anymore, how will we handle the payroll for that person.

If we put him on US payroll,how will we handle the Canadian payroll,taxes and remittance of those taxes. The tax filings will have to be handled as well.

Can you please advice on this.

Thanks a lot for your help.  

Answer
Set up a bank account at Royal Bank in canada. Transfer enough to cover the payroll each payday.

Outsource the payroll with ADP Canada. They will do all your remitting and taxes plus deliver the check to your employee for around 40.00 a payroll. You can't even get someone to do the taxes for that.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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