[glodoe]

I want to hire a non resident of Canada - the person would work from their home in the USA but provide services for our Canadian based company. I am unclear as to how the deductions would work for this employee.
Any advice is appreciated.

[David Blue]

glodoe, on Feb 8 2007, 09:16 PM, said:

I want to hire a non resident of Canada - the person would work from their home in the USA but provide services for our Canadian based company. I am unclear as to how the deductions would work for this employee.
Any advice is appreciated.

I would suggest that you approach this matter as a consultant. I would not use the words hire, but would have the person start his own consulting business,"legal, registered etc" Non residences who are hired by Canadian Companies that work in Canada have a 15 % withholding tax withheld at source. You would engage the foreign company on a retainer and have services provided for you. No GST to be paid or source deductions. I would suggest that you approach your accountant and ask him how he would like you to proceed. Different accountants have different ways of approaching issues like this and different ways they want the transactions handled. My suggestion is only one way and it will have its pitfalls. You need to sit down with your accountant and go over all issues pertaining to the matter.

Sincerely;
David Blue RPA