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Accounting, Payroll & Pension Issues/PAYROLL QUESTION
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Question
Dear Ms. McAllister
We are a Foreign Coeporation based in USA and we have hired some employees in CANADA based on the salary program of the USA staff.
WE want to have your expertise what will be the fair way to
convert the USA salary to CANADIAN DOLLARS. IS it fair to use the exchange rate of the date hired onfe and forever or should be take the yearly Average Exchange Rate / What is your opinion please
Thanking you in advance
With kind regards
Demetrios Dermos
What I would suggest is to set up an account with Royal bank in Canada and transfer fund to that account when needed. Than you could set direct deposit up for those employees and transfer the funds from that account in Canadian dollars to their accounts.
It might be wise to just hire ADP Canada to do it for you. They charge a small fee and will also do all the taxes and T-4 year end forms. It is really a reasonable cost.
If you are paying from here and converting I would use the XE daily converter and covert the funds on the day that payroll is paid according to that day's rate.
http://www.xe.com/ucc/
Shirley
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Answers by Expert:
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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