Below is the result of your feedback form. It was submitted by
XXXXX XXXXXX@hotmail.com) on Friday, July 31, 2009 at 15:18:20
question: I am living and working in Canada for a US company. I will be a sales rep trying to sell their goods to retail companies in Canada. What employment contract should be used? I am going to be on commission.
What do I need to know about taxes on any money I receive?
Should this US company deal with a Canadian lawyer?
If so, who is experienced in such situations?
I live in BC. Thank you.
david ingram replies:
The question has too many parameters to answer fully in this venue. However I recognize you as being the person who got through on the phone.
As I said, I charge for the kind of things your were asking and you and possibly your employer need to talk to someone to decide how they are going to deal with you. If necessary, we could easily do a conference call with the person who is hiring your services.
Briefly though you have two main possibilities:
1. The US company opens up a payroll account in Canada and hires you as an employee. They will deduct CPP, EI and Income tax from your wages. If you are getting a salary with a commission, this is likely the best way for you and your company. If laid off, etc., you can claim Employment Insurance.
2. You become your own company which can be incorporated although i suggest 99 times out of a 100, that you remain a proprietorship. This is what you should do if you are being compensated mostly or entirely by commission and will work out of your own premises at your own hours with your own car and computer and other tools. The advantage is that if you are a proprietorship and have a mortgage, you can use the proprietorship to make your mortgage interest deductible.
For more information on making a mortgage deductible, see the November 2001 newsletter in the top left hand corner at www.centa.com
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6 to 7 PM - Fred Snyder, host of "ITS YOUR MONEY" from 9 to 10:30 AM every Sunday on CISL (650 on your AM dial) and from 5 to 6 PM on CKNW (980 on your AM dial). This next Sunday (the first Sunday in the month, I will be Fred's Guest and we will be talking a lot about how to make your Canadian Mortgage Interest Tax Deductible on your CANADIAN return. You can also ask about (and get one free by calling) a written Financial Plan for the future or what to do with your pension. You can phone in with a question for Fred or a question for me on CISL, CKNW or the Web program at www.david-ingram.com.
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8 to 9 PM will be Dan Walkow www.seabankcapital.com. Dan has made himself one of the very FEW US Canadian Financial People legally qualified and LICENSED to deal with your financial affairs on either side of the border. If you are a Canadian living in the US or Canada, or an American living in Canada, Dan is the only person for you to deal with if you have investments, IRA, RRSP, 401(K), RRIF or any other financial account on the other side of the border or intend or think you will accounts on both sides. AND, if you are intending to move from the US to Canada or Canada to the US, you have to know that it is a time consuming process to develop a new credit history. When you deal with Dan, he can look after cross border Visa and Mastercard Accounts and make it a seamless transition.
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