[wlui]

Hi there

We are a Canadian recruiting company which places various IT professionals to work in different client sites. All of the contractors are either incorporated or sole proprietor setup.

We have one contractor who is a US citizen and works remotely from the US and sometimes travels to Canada to do some follow up work (less than 180 days)

What are the tax implications to our company? SO FAR, We have been withholding 15% withholding tax when we pay him out.

If this is correct, when are we suppose to remit this withheld tax to the CRA? Is there a timeline? or should we remit say on a periodic basis? eg every month.

Thank you.

win.

[Joe]

wlui, on Apr 8 2008, 09:27 PM, said:

What are the tax implications to our company? SO FAR, We have been withholding 15% withholding tax when we pay him out.

Your PDA (Professionally Designated Accountant) is the appropriate person to advise your business on how you should be compliant with Reg 105 and other issues which may have Treaty implications in your specific circumstances.
If you havent engaged one yet, you will have to wait until tomorrow morning to hire one....
.

[David Blue]

You need to go to your accountant:
Issues:

Monthly remittances, Did you get a NR Number, Are you with holding only for services and or for products also.
Besides that you also have to deal with the issue of sole "sole proprietor setup. " do they meet the guidlines
Have the "sole proprietor setup. " obtained S.I. numbers for canada.
Did you file all NR forms by the required deadline.

and the list goes on and on and on.

Spend a few dollars and get the help you need now before CRA helps themself to you and your company. With pealities and interest.