• Discuss Entrepreneurship | Start-Ups | Starting a Business | Wealth | Money | Success | Investing
  1. Escape the Grind. Resurrect The Dream. Live Happily Ever After.

    Become an UNSCRIPTED™Entrepreneur.

    Don’t just build a business—build a life and a legacy. UNSCRIPTED™ Entrepreneurship is a specific subset of business creation that awakens dreams, frees time, and explodes incomes—but more importantly, it changes lives.

    Make no mistake; this isn’t something you “try”— this is something you live.
    KICKSTART YOUR PERSONAL REVOLUTION TODAY.
    Get The Book(s) Download More Info Register
    Registering for the forum removes this block!

Change Yourself.
Change Your Life.
Change The World.

Tired of broke bloggers giving you advice? Within minutes, get millionaire advice from real entrepreneurs who live the dream.

Canadian business, how to pay U.S. employee?

Discussion in 'General Entrepreneur Discussion' started by rogainer, Apr 19, 2017.

FORUM SEARCH


Need answers about entrepreneurship? Search FIRST! More than likely your entrepreneurial topic has already been discussed.
Powered by Google Site Search.
  1. rogainer
    Offline

    rogainer 10 2 10 FASTLANE INSIDER Speedway Pass

    Messages:
    76
    Likes Received:
    118
    Joined:
    Jan 22, 2014
    Gender:
    Male
    Location:
    Vancouver, Canada
    Rep Bank:
    $691
    Does anyone here have a Canadian business with U.S. employees? Or know the best way to handle this? Or can refer an accountant who knows?

    Employee or subcontractor? U.S. bank account? Paypal? Wire transfer?

    Looking for convenience & to minimize taxes & fees for both the employee and employer.

    Thanks
     
  2. OldFaithful
    Offline

    OldFaithful Silver Contributor Read The Millionaire Fastlane Speedway Pass

    Messages:
    561
    Likes Received:
    759
    Joined:
    Mar 11, 2016
    Gender:
    Male
    Location:
    Northwest Indiana
    Rep Bank:
    $5,256
    If you have an accountant that you use already, ask him/her. If not, it's probably time to find one. Ask for referrals and try to find an accountant that has some experience in this area. It will take some time/effort, but it may be the only way to get it done.
     
  3. MidwestLandlord
    Offline

    MidwestLandlord Platinum Contributor Read The Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    904
    Likes Received:
    4,726
    Joined:
    Dec 6, 2016
    Gender:
    Male
    Rep Bank:
    $20,073
    According to my accountant wife,

    The USA will treat it as US income, so you'll have to follow all the rules such as W-2's, FICA, Obamacare if applicable, etc.

    Plus there is licensing involved if the business is actually taking place in the US (federal and state level licensing). Also, there are state level tax codes to deal with, including income tax etc.

    Also, you might have obligations on the Canadian side of things, such as a T4.

    She said be aware the the US IRS fine for not issuing a W-2 is the tax due, PLUS up to 25%, PLUS interest, and that the US and Canada have laws in place that allows the Canadian government to collect this on behalf of the USA.

    Long story short: Get a CPA that is experienced in US-Canadian Tax codes and wages.