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US Company doing work in Canada
Recruiting & Staffing
US Company doing work in Canada
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We are a retail general contractor specializing in retail tenant improvement. We remodel and improve existing retail stores such as Victoria's Secret and bath and body works. We are looking to start b
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Forums » Topic Forums » Recruiting & Staffing » US Company doing work in Canada
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US Company doing work in Canada
posted at 5/4/2009 7:24 AM EDT
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Posts: 2
First: 5/4/2009 Last: 5/4/2009 |
I had a similar question. We are a us company and will use the services of a Canadian citizen who lives and works in Canada. He will sell some of our lines in Canada, and will not work for anyone else. Can we still treat him as a contractor, and pay him in US dollars? |
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US Company doing work in Canada
posted at 5/4/2009 8:29 AM EDT
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
If the person will be truly an independent contractor (the guidelines for determining whether a person is an IC or an ee are almost exactly the same in Canada as they are in the US) then you can pay the person in US dollars and not worry about withholdings etc. If, however, the person will be an employee according to Canadian guidelines (which again are almost identical to US guidelines), then you'll have to pay in Canadian dollars, do Canadian withholdings, and abide by Canadian employment law. Go to www.cra-arc.gc.ca for Canadian IC vs ee guidelines. |
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US Company doing work in Canada
posted at 5/4/2009 8:32 AM EDT
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
MAL8986, I just read your post a little more carefully, and this person sounds like an employee to me - specifically because he won't be working for anyone else, and Canadian law requires that independent contractors derive no more than one-third of their annual incomes from any one source. |
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US Company doing work in Canada
posted at 11/14/2009 7:24 PM EST
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Posts: 1
First: 11/14/2009 Last: 11/14/2009 |
Further on the question of hiring Canadian IC's to work with US companies; assuming all IC requirements are met for employment/tax laws in both countries, is a Canadian IC only beholden to Canadian tax collectors? Other than written agreement between US business and Canadian IC along with adequate proof of IC candidacy, are there any stipulations or tax requirements posed by the IRS? Thank you for this valuable information. |
Forums » Topic Forums » Recruiting & Staffing » US Company doing work in Canada
