1099 Employee and hiring US employees - T4A-NR slips

QUESTION:
I have a registered Canadian business (BC incorporation).  When we hire US
individuals on a commission basis, are they considered 1099 employees,
between them and the IRS or do we have to declare to the IRS as well?
I also work as a 1099 employee for a California based company.  Do you
recommend I obtain a "paper" B-1 visa?  Would it be better that commissions
paid by the California corporation be made to the company instead of myself?
Do I file with the IRS and include Canadian income?
-----------------------------------------------
david ingram replies:
Do NOT use this answer to proceed without sitting down and talking with
someone like me an make sure that what you are doing is legal.
For instance, a B-1 visa does NOT allow you to work in the USA for an
American Company.  You can go to jail and many have for trying to Use a B-1
visa status to work for a US company IN the USA.
If you are working for a US company in Canada, you do not need any visa at
all.  If you are a straight commission agent working in Canada paying your
own expenses and working at and on your own time, there is no reason that
the US company "has"
to report the money paid to you at all.  You are clearly self-employed.  In
between self employed and a captive agent, they could pay you and issue a
1042S which is for monies paid to foreign persons.  However, even the 1042S
is usually for foreign persons performing the services in the USA itself and
you can NOT do that on a B-1 Visa.
A B-1 visa is for a person performing services for a CANADIAN company in the
US.
AND, to be clear, you can NOT be selling a US product in the US through a
Canadian company.
If you are hiring US individuals as employees to work in the USA, you would
have to establish a US payroll account and deduct US taxes, Medicare, and
pay worker
s compensation and employment insurance where required.
If, they are free agents, you would just give them their commissions and
would not have any particular reporting rules to Canada or the US.  It might
be suggested that you should issue T4A-NR slips but these are not likely
necessary.
Of course, any company that wants to be absolutely within any supposed IRS
or CRA rules would issue the T4A-NR and 1042S slips respectively.
Take it easy. It sounds to me that you need to get some good advice before
you proceed any further.
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