[?][?][?]
<font face="Tahoma">I'm just looking for a little help and direction.
I am currently a Canadian citizen, working <i>within Canada</i>, but my employer is a U.S. based company. I presently work within <b>Canada only</b>, and have no direct work in the US, with the exception of the occasional business meeting every few months.
I'm looking for a little direction on the taxation issues that present itself in this situation. My employer isn't too sure how to handle things, and I thought I would take things into my own hand to see what I can find out. Are there laid out procedures on what a US company <i>MUST </i>do to employ within Canada, or can I take care of taxes at the employee level. Basically we have it laid out now where I am paid by them <i>(cheque)</i>, and I transfer the tax % to Rev. Canada.
This is a new situation, so I would like to make sure I correctly follow procedures to avoid problems down the road.
Any direction or help you can give on this topic would be greatly appreciated.
Cheers,
SC</font id="Tahoma">
[8D]
Cdn Citizen working for US Company within Canada
Moderator: Mark T Serbinski CA CPA
Your employer MUST set up a payroll for you as an employee, paying EI and CPP (their portion) and remitting Cdn and prov taxes withheld from you.
This is their reponsibilty as an employer of a Cdn worker. 1000's of Cdns work this way.
Their (and your) other option is for you to bcome self-employed, receiving a fee (not salary) from the firm, and then you pay all taxes etc, and claim expenses. You would not likely get any benefits from the firm under this arrangement.
<i>nelsona non grata</i>
This is their reponsibilty as an employer of a Cdn worker. 1000's of Cdns work this way.
Their (and your) other option is for you to bcome self-employed, receiving a fee (not salary) from the firm, and then you pay all taxes etc, and claim expenses. You would not likely get any benefits from the firm under this arrangement.
<i>nelsona non grata</i>
<font face="Tahoma">Thanks for the quick response!
Are there any thoughts on what would be the best way to handle this from my side. If I wanted to do the self-employment thing, how would I go about setting this up within Canada? Is this my better option for tax purposes, or is it better for them to handle it directly.
I think the option will be totally up to me, and I'm just looking for a little insite.
Cheers,
SC</font id="Tahoma">
Are there any thoughts on what would be the best way to handle this from my side. If I wanted to do the self-employment thing, how would I go about setting this up within Canada? Is this my better option for tax purposes, or is it better for them to handle it directly.
I think the option will be totally up to me, and I'm just looking for a little insite.
Cheers,
SC</font id="Tahoma">
Thanks for the help.
Just one more quick note. If everything stayed the way it is (paid by cheque), and no deductions were being made, what would happen on my tax return at the end of the year? Would I then be required to pay the porton of CPP and EI at the end of the year, or would this become a problem with Rev.Can. and be forced to change?
In the mean time, my employer is going to look into using a Canadian Payroll Service to take care of everything from hear on out.
Cheers,
SC
Just one more quick note. If everything stayed the way it is (paid by cheque), and no deductions were being made, what would happen on my tax return at the end of the year? Would I then be required to pay the porton of CPP and EI at the end of the year, or would this become a problem with Rev.Can. and be forced to change?
In the mean time, my employer is going to look into using a Canadian Payroll Service to take care of everything from hear on out.
Cheers,
SC
-
- Posts: 11
- Joined: Tue Nov 16, 2004 12:46 pm