How to structure cross-boarder employment

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nelliott
Posts: 1
Joined: Sun Mar 02, 2008 11:19 am

How to structure cross-boarder employment

Post by nelliott »

A U.S. based co. is interested in hiring me to represent them in the CDN market. They have very little experience hiring international empoyees. One of their only experiences is wiht na employee in France and this was an expensive and difficult task (too many govn regulations and benefit issues) They are worried it may be complicated and expensive and that the CDN market may not be large enough to warrant the expense and effort. I would like to get as much info as possible to make this easy for them, as I am very excited baout the opptounity to work with this co. I have spent hours looking though older posts on the issue and so far I have found;
1) ask them to use a payroll co. to process my payroll and they will take care of EI CPP etc.
2) complete forms (which ones exatly?) to stop any tax withholding by US tax authroities

Questions I have not ofund answers to (and would appreciate any advsie on) include;
Benefits - do I have to find my own here and ask them to pay? can I participate in thier co. Benefit plan if so how does this work cross border and what are the tax implicaitons
Expenses: mileage, rent, telelphone etc. how best to structure this -- could there be a "flat monthyl fee" payable to me for use of my home, car, computer etc. - woudl this be taxable to me? a taxable expense for them?
Nay opther ti[s on how to structure this arrangement for the most beneficial tax treatment for both myself and the co.? Thanks
Carson
Posts: 182
Joined: Wed Oct 27, 2004 1:00 pm
Location: Toronto

Post by Carson »

If you are going to be a Canadian employee, instead of a self-employed consultant who invoices the company, then besides the Canadian payroll issue, they will now have a Canadian branch office. This will require them to register for corporate income tax, GST, perhaps provincial sales tax as well. They will have to file all of the related Canadian tax returns. This will be an expensive and complicated undertaking for them and it is recommended that they use a Canadian accountant.

Is being an employee that important to you and them?
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