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To: "David Ingram at the CEN-TA Group" <david@centa.com>
Sent: Friday, April 12, 2002 2:54 PM
Subject: US citizen selling Canadian products
in the US
> Hi David,
> > I have a few questions for you: > > 1. Can a US citizen, residing in the US, be an employee of a Canadian > company selling Canadian manufactured goods to US customers? >
Yes - However, the US employee cannot come into
Canada and sell the Canadian product.
> 2. Would it be easier to hire this person as a consultant or contractor > rather than as an employee? What criteria has to be met to quallify as a > contractor? >
This is a moving target and too hard to answer
definitively. However, in general, a contractor provides his or her own
tools, pays his or her own expenses and takes the risk that if nothing happens,
they lose money. contractors usually do work for more than one entity and
when they hand out a business card, it has their company name on it, not yours.
3. We do have a wholly owned US subsidiary in Ferndale, Washington.
>Would it make more sense to hire this US
citizen through our US company, >even though the majority of the products
he would be selling are >manufactured in Canada?
> It doesn't matter if he or she is truly a self-employed contractor. However, if an employee, you are required to conform with all US hiring practices and make proper deductions for US tax, US medicare, US social security and other items like Workers compensation, Employment Insurance and other esoteric items like California Disability Insurance, New York City or Bronx income tax and County Tax in Maryland, Michigan and other places.
Far easier to deal with that on a local
payroll.
david |
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