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how to hire a Canadian who will remain in Canada?
Recruiting & Staffing
how to hire a Canadian who will remain in Canada?
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We're a small California-based corp doing most of our work electronically. We want to hire a Canadian guy who will continue to live in Canada. What rules, regulations, pitfalls, and benefits can I lea
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Forums » Topic Forums » Recruiting & Staffing » how to hire a Canadian who will remain in Canada?
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how to hire a Canadian who will remain in Canada?
posted at 1/23/2009 12:15 PM EST
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Posts: 11
First: 10/24/2006 Last: 11/16/2009 |
We're a small California-based corp doing most of our work electronically. We want to hire a Canadian guy who will continue to live in Canada. What rules, regulations, pitfalls, and benefits can I learn from your experience? (I already have counsel to call upon if need be; just hoping to reduce legal costs by starting the process well-informed). Thanks. |
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how to hire a Canadian who will remain in Canada?
posted at 1/24/2009 4:23 AM EST
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
I am a Canadian who provides HR and legal consultation/advisory services to clients in both Canada and the US. I've been doing this for 20 years, and your particular issue is very very common.
To do this legally you need to: * pay the Canadian employee in Canadian dollars * deduct, withhold, and pay Canadian taxes from his pay * observe and uphold Canadian employment laws (for example, mandatory paid holidays and vacation time, termination pay if you let him go for any reason, etc.) If you don't do the foregoing, at some point Canadian regulatory agencies will find out (just like their American counterparts, they ALWAYS find out eventually), you will be ordered to pay large fines and tax withholdings, restitution to your Canadian employee. If you ignore these orders, your company and its officers/owners will be barred from entering and/or doing business in Canada. That's it in a nutshell. If you need any more information, just ask! |
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how to hire a Canadian who will remain in Canada?
posted at 1/24/2009 4:43 AM EST
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Posts: 11
First: 10/24/2006 Last: 11/16/2009 |
Thanks for the speedy response. The task must be do-able, if it's a common issue. Where does one find a list of the related employment laws I'd have to follow? Would I have to apply for an employer number (CAN equivalent of a FEIN, our company employer / taxpayer ID)? how to do that? I appreciate you sharing your wisdom, with so much experience in this area. |
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how to hire a Canadian who will remain in Canada?
posted at 1/24/2009 5:48 AM EST
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
You need to establish a business identity in Canada first (you don't need a physical address, a mailbox will do, but you must have an identity). You also need to register with Canadian tax authorities (called the CRA). I'd recommend having a Canadian business lawyer guide you through all this - to find one, go to the board of trade website of a municipality in the province this employee lives in and do a search.
You'll also need a Canadian accountant to pay this employee and do all the appropriate withholdings etc. See above for how to find one. For employment laws, I need some information first. In Canada, employers are governed by provincial OR federal employment laws (not like state AND federal laws, as it is in the US). This is determined by what the employer actually does. What does your company do? Finally, what will this employee be doing for you? (A much simpler way to do all this would be to use him as an independent contractor. However, you cannot provide him with any tools, equipment or business cards, and he must register himself with CRA as a business, with a GST number - and charge you tax along with his hourly rates. Also, his business may not derive more than 60% of its annual income from your company, which means he'll have to to work for other companies to make up the 40%. This may not work for either of you.) |
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how to hire a Canadian who will remain in Canada?
posted at 1/26/2009 7:29 AM EST
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Posts: 11
First: 10/24/2006 Last: 11/16/2009 |
We do data base engineering for the wireless telecommunications providers like ATT, Sprint and Verizon -- mostly clerical (as would be in the case of the Canadian candidate) with a bit of cell-site visits in some phases of the work. The guy is in B.C. In US$, what's the likely start-up cost including legal and filing fees? |
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how to hire a Canadian who will remain in Canada?
posted at 1/26/2009 8:22 AM EST
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
Start-up costs would be at least a few thousand $CDN.
Based on your description, this employee will be non-exempt (i.e., entitled to OT pay). To get details on OT pay requirements, paid vacation and holiday requirements, and mandatory termination pay amounts etc., go to www.labour.gov.bc.ca. If you have any questions about what you see there, just ask me. Also, two important things for Ameerican companies to know about employing Canadians in Canada: 1. "at-will" employment is illegal in Canada; and 2. An offer of employment letter is considered to be a contract in Canada. |
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how to hire a Canadian who will remain in Canada?
posted at 11/12/2009 5:57 PM EST
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Posts: 1
First: 11/12/2009 Last: 11/12/2009 |
hrbth - is there any way that i could contact you offline to get a little more information about hiring a Canadian citizen? Sounds like i have a similar situation as the other poster and I want to make sure i understand all the ramifications for my company should i pursue full time or contractor status.
Can you provide an email or phone number or a way for me to contact you and talk through some of the pieces of information you mentioned in your post? Thanks! Jen Frazier |
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how to hire a Canadian who will remain in Canada?
posted at 11/16/2009 2:25 AM EST
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
Send me an email at cpackham7@aol.com and I'll send you my phone number. |
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how to hire a Canadian who will remain in Canada?
posted at 11/16/2009 3:28 AM EST
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Posts: 155
First: 8/24/2009 Last: 2/9/2010 |
I have nothing of substance to add to the exchange. I simply wanted to say that this is one of the more informative threads I have encountered here in sometime.
What a pleasure to see this. |
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how to hire a Canadian who will remain in Canada?
posted at 11/16/2009 7:38 AM EST
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Posts: 11
First: 10/24/2006 Last: 11/16/2009 |
I agree! very informative sharing of exactly the kind of info I needed earlier this year when I started the thread. Our Canadian poster saved me from several landmines and expenses.
BTW we ended up not employing the candidate; we're not big enough to absorb the costs, paperwork and risks. |
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