Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

I am Srinath VP at Aptude - We are an IT services company

Customer Question
Hello - I am Srinath...
Hello - I am Srinath VP at Aptude - We are an IT services company - We are primarily based out of US. We have to pay one consultant who is a resident of Canada and working from Canada. He likes to get paid through payroll and wondering on how we can do without we having presence in Canada?
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 22 minutes by:
5/28/2015
Tax Professional: Tax.appeal.168, Tax Accountant replied 2 years ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 3,869
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified
Welcome. Thank you for choosing us to assist you. My name is ***** ***** my goal is to help make your life, a little... less taxing.
You will need to set up payroll in Canada. The easiest way to do this is to partner with a Professional Employment Organization (PEO). SEE BELOW:
A very popular partnership in the U.S. is utilizing a Professional Employment Organization (PEO) to act as the employer in all aspects of payroll, human resources and government compliance. The PEO specializes in ensuring the employees are paid correctly, all payroll administration including government remittances are complete and on time. They are experts when it comes to employment standards as well and ensure that proper policies and procedures are in place to satisfy all government agencies.
This employer of record type of partnership has now moved across the border into Canada with payroll and HR support companies like our partners at The Payroll Edge. A Canadian employer of record company can help U.S. companies expand their sales force without the risk and complication of registering a business presence here. The sales person is still controlled by the U.S. firm in regards ***** ***** and expectations but because the Canadian payroll provider has taken on the employee as one of their own, they ensure that all legal and government compliance is in place and continues for as long as the worker is in their employ.
With the right Canadian payroll service like The Payroll Edge, a U.S. company cannot only satisfy the needs of their Canadian clients with face to face interaction, but expand their book of business without much complication.
REFERENCE SOURCE:
http://tinyurl.com/pghekhh
Let me know if I can be of further assistance to you regarding this matter.
Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,885
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Hi Srinath,
I am a different expert with a different answer.
Nonresident employees WHO PROVIDE SERVICES from abroad are NOT subject to U.S. withholding.
Why? Because the source of income from services is where the services are performed (not where payment is made).
Further, Non-resident aliens are NOT subject to tax on foreign-source income.
What you SHOULD do is request that the employee document this/her foreign status on Form W-8BEN.
http://www.irs.gov/pub/irs-pdf/fw8ben.pdf
And for this purpose, there's no Taxpayer Identification Number required.
Another best practice is to be sure to delineate the location of the services in their contracts.
And finally Comp. to nonresident employees working abroad is not subject to FUTA.
You do not need to go to the expense of farming this out.
Your constraint will likely be simply NOT withholding (a possible payroll system constraint).
But again, get the W-8, document in every way possible that this person does not provide services from within the US.
Your paying him does NOT create a presence in Canada ... UNLESS he is selling there, you provide an office there, etc.
If this person is comply providing a service to you and not doing something himself that would created presence (and given your business category, not likely) you would have no presence.
let me know if you have questions ...
Lane
Ask Your Own Tax Question
Tax Professional: Tax.appeal.168, Tax Accountant replied 2 years ago
I stand by my original answer.
Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Perhaps a third party reference would help here:
(This is from a tax attorney, well schooled and experienced US tax, as it relates to foreign persons (the issue here), AND international tax ... I have no association with this firm and am not recommending them, but completely concur with their opinion:
http://intltax.typepad.com/intltax_blog/2012/10/form-1099-for-payments-to-foreign-contractors-for-services.html
Let me know if you have questions ...
Lane
Ask Your Own Tax Question
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,885
12,885 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
My client is a foreign corp in Slovakia with no PE in the US
My client is a foreign corp in Slovakia with no PE in the US and does not want a US subsidiary but would like to hire 2 US persons - what is the best way to do that? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
A foreign individual is a member of a US LLC. Are there any
A foreign individual is a member of a US LLC. Are there any extra requirements for filing when it comes to the partnership return?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
Can my LLC with US and Foreign members be a shareholder in
Can my LLC with US and Foreign members be a shareholder in an S Corporation? The K-1 would go to the LLC.… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
US taxation and sales tax issueI started ebay business with
Second opinion] US taxation and sales tax issueI started ebay business with a Korean relative. We don't have a partnership agreement. The partner has an paypal and ebay account, gets a sales order, an… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My wife is a foreign national who is a legal US resident
My wife is a foreign national who is a legal US resident (not US citizen). For medical school, her family gave her a no-interest loan valued at >$100,000 USD. We plan to pay them back in their curr… read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
3,869 satisfied customers
This question is about foreign gifts and loans, taxes / the
This question is about foreign gifts and loans, taxes / the IRS. Im currently buying my wife out of the house title, and need $20,000 to do that. My dad is offering most of that money in the form of a… read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
3,869 satisfied customers
I (US person) own 50% in a foreign partnership (real estate
I (US person) own 50% in a foreign partnership (real estate partnership under civil law (GbR) in Germany), the other 50% are held by a none US person. - I have rental income from the foreign partnersh… read more
taxmanrog
taxmanrog
Master\u0027s Degree
702 satisfied customers
I am receiving some income from a foreign government "social
I am receiving some income from a foreign government "social security-type" benefit program. Where should I report this income in my Tax Return? Should I report it as "Other Foreign Financial Assets"?… read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
3,869 satisfied customers
Does a foreign government type "social security" benefit
Does a foreign government type "social security" benefit plan need to be reported on an FBAR as a Foreign Financial Account?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
Client (US resident) with foreign salary and taxes paid in
Client (US resident) with foreign salary and taxes paid in foreign currency - Part II of 1116 form for some reason adds taxes paid only in US $ (line "o" through "r") - it does not take taxes paid in … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am employed by a foreign employee, but live in the US. My
I am employed by a foreign employee, but live in the US. My employer does not have a legal US presence. My employer has no US clients and all of my work of performed abroad. Foreign employer does not … read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
3,869 satisfied customers
On a Partnership K-1, foreign income items are reported on
On a Partnership K-1, foreign income items are reported on Line 16, but in addition there is a separate schedule listing foreign currency gain, Subpart F income and qualified fund income under Sec 129… read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
3,869 satisfied customers
A Nonresident Alien just took steps towards becoming a a
A Nonresident Alien just took steps towards becoming a a U.S. Permanent Alien in June 2017. He is an airline pilot with a tax home in Hong Kong. He has a Mandatory Provident Fund established with the … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
My mom is a nonresident alien, she spends 1 month out of a
My mom is a nonresident alien, she spends 1 month out of a year in the US. If the has a brokerage account in the US, and buys and sells domestic stock, are capital gains, short or long, tax exempt?… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
How do you report nonresident alien (someone does not have
How do you report nonresident alien (someone does not have green card or non US citizen) 's capital gain on sale of stock… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
My friend is a nonresident alien student in the US. If he
My friend is a nonresident alien student in the US. If he receives a wire transfer from his home country, am I correct that is nontaxable income, and does it matter whether the money comes from his ow… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
I'm in the Withholding Compliance Program and am wondering
I'm in the Withholding Compliance Program and am wondering if I can get out of it in less time than stated in the letter. … read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
Regarding Form 1040NR US nonresident alien income tax
regarding Form 1040NR US nonresident alien income tax return: where do you report U.S bank interest on the form… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x