Expert: Shirley McAllister, CPP, PHR - 2/4/2011

Question
Dear Shirley,

I am a consulting working with a Canadian company that wants to hire a US person (either in Ohio or North Carolina) as a sales employee to be closer to customers.

How do we go about creating a good / complete package for them that complies with laws cross-border?  Are their firms that help do this or individuals to be sure we get it right the first time around?

Thanks in advance

Answer
My suggestion would be to hire ADP or Ceridian to do this person's payroll package.  ADP will be reasonable and will do it right according to the laws.

If they are an outside sales person paid only on commissions than they get a 1099 at the end of the year and you do not have to deduct taxes.

If they are an employee than you have to deduct fica, medicare, federal and state withholding taxes. You have to pay State and Federal unemployment taxes and you have to cover them with Worker's compensation.

You do not legally have to pay for holidays unless they work or for vacation or sick time although you may wish to do one or the other.

Most generally holidays are paid in the U.S.

If the employee is hourly than you have to pay overtime if he works more than 40 hours in a week.

Insurance should be offered if the individual is an employee but not necessary if he is an outside sales person on commission only payment.

Shirley