Contracting in US from Canada

[abeckett]

Hello and thank you for taking the time to read my message.

I work with a small contracting and hiring firm based in Canada and we are considering expanding our business to the U.S.

This would entail two scenarios:

Scenario 1) All services performed by our company (locating and placing a contractor) were done in Canada. The contractor is a US citizen and he will be working at a US company in the United States. We will pay the US contractor and invoice the US client. What are our financial and tax obligations to both parties?

Scenario 2) All services performed by our company (locating and placing a contractor) were done in Canada. The contractor is a Canadian citizen and he will be working at a US company in the United States. We will pay the Canadian contractor and invoice the US client. What are our financial and tax obligations to both parties?


I greatly appreciate any assistance that can be provided as after much reading online I have been left a bit confused as our scenario isn't typically utilized in examples.

Thank you in advance!

Kind regards,

Ashley