Hi,

I am starting a company in Canada and I am interested in having offshore employees, legally (i.e. not under the table).

Do you have any links where I could learn more about the legalities when having offshore employees?

Being a Canadian company with offshore employees (either from the USA or India), what should I know? What about taxes?

Any Canadians company doing the same thing?

Also, are there advantages of employing Canadian employees rather than foreign employees?

I looked at some government's sites but couldn't find any info.

Thanks!

The first time I told an accountant that I had people working for me in Europe, he just kind of stared at my like, "couldn't you just ask me how to fill out your tax forms?"

Anyway, from my experience (in the US) it depends on how the employees in the foreign company are declaring themselves and if/how you have a relationship with them. Meaning, if they are claiming themselves as self employed in the foreign country, you really do not have anything to worry about because your country has no liability for them (unemployement insurance, medicare, social security, stuff like that). If you set up some type of legal entity in the foreign country, then you probably will have tax liabilities on that entity and you can not just pay that entity from here. That would be like paying yourself and calling it an expense. You still really don't have to worry about the employees, it is more about worrying about that company over there that you own.

I have been paying people overseas every month for a couple years now and Mr. Taxman has not said anything to me (which doesn't mean much) so I think I am on the up and up. Canada may be different than the US though, I don't know.

One advantage to paying people in canada is u get to collect payment in us dollars and pay employees in funny money :D

-Brendan

Originally posted by HRBrendan
One advantage to paying people in canada is u get to collect payment in us dollars and pay employees in funny money :D

-Brendan

There are still some advantages to living in an igloo.
My dog sled team takes me everywhere I need to go :D

TheGodfather,

We've got a couple working in the US. I'm not at work right now and couldn't name the exact form, but what you need is a tax sheet couriered from them so in the event the government audits you this form will show where the money goes :D

-Matt

thanks everyone for your answers :)