It’s very easy for residents of Canada and the United States to work together, thanks to our proximity and our common language and culture. However, the arrangement becomes a little trickier when it comes time for a U.S. company to pay their Canadian employee. American and Canadian payroll regulations are very different, and it’s important you are allowing your Canadian employee the appropriate benefits. Employment and labor relations in Canada are not only different than those in the U.S., but also vary from province to province.
It’s also important to keep in mind that government benefits for Canadians are vastly different than those in the U.S., (free healthcare, anyone?), which means Canadians have very different benefits packages than their Canadian counterparts.
In order to have a Canadian employee, the company must also register with the Canadian government and establish an administrative presence in the country by opening accounts with various government agencies, banking institutions, and insurance providers.
It would be advisable for a company to hire an attorney, or payroll companies, to make sure all appropriate action is taken. There are a lot of important differences and intricacies involved, and mistakes can result in costly fines or penalties. Payroll processing companies can help avoid all of these problems.