• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 40,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

FORUM SEARCH

Get answers about starting a business from real entrepreneurs. Powered by Google.

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

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

  1. rogainer
    Offline

    rogainer 10 2 10 FASTLANE INSIDER Speedway Pass

    Messages:
    147
    Likes Received:
    311
    Joined:
    Jan 22, 2014
    Gender:
    Male
    Location:
    Tempe, AZ
    Rep Bank:
    $1,743
    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 Millionaire Fastlane Speedway Pass

    Messages:
    648
    Likes Received:
    984
    Joined:
    Mar 11, 2016
    Gender:
    Male
    Location:
    Northwest Indiana
    Rep Bank:
    $6,347
    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 Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

    Messages:
    1,345
    Likes Received:
    8,862
    Joined:
    Dec 6, 2016
    Gender:
    Male
    Rep Bank:
    $31,372
    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.