Accounting, Payroll & Pension Issues/Canadian company hiring a US employee

Advertisement

Expert: - 4/11/2011


Question
We are a canadian company that would like to hire a US employee to sell our product in both the US and Canada. Can we pay him from our canadian company or do we need to set up a US company?

Answer
The easiest and most correct way to pay this employee would be to outsource the payroll to either ADP or Ceridian. You could pay them with Canadian funds and they would pay your employee witholding and filing the correct taxes for you.

Both ADP and Ceridian have an office in both the U.S. and Canada. I pay my canadian employees with ADP Canada. They do my tax filings, my T4's, by ROEs and my RRSP.

Here you would have in the U.S. Fica/Medicare, FIT, SIT, FUTA and SUTA and perhaps Local tax depending on the city and state. Also you would have Worker's Comp insurance.

Shirley

Accounting, Payroll & Pension Issues

All Answers

Answers by Expert:

Ask Experts

Volunteer

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.

©2012 About.com, a part of The New York Times Company. All rights reserved.