When it comes to Canadians working in the U.S., unfortunately things are far from straightforward. Tax laws can — and often do — make a mess of everything, and it can be very time-consuming and complicated for a U.S. employer to tackle these legal nuances on its own. Here are some things you need to know, and a few reasons why it may be easier to hand the responsibility over to outsourced payroll processing services:
All Taxes Are Not Created Equal
Unfortunately, when it comes to Canadian payroll tax — there is rarely a general rule of thumb. While a select few are pretty much the same throughout the country and the provinces, many differ (and sometimes significantly) by province. Instead of working out which territories owe Employer Health Tax (EHT) and at what rate, it is often much faster to invest in outsourced payroll providers with extensive knowledge of Canadian workers, employment in Canada and the U.S., and the specific tax laws of each country and, when applicable, each Canadian territory.
The Case For Outsourcing Payroll
Of course, the benefits of outsourced payroll providers do not stop there. Not only are these professionals about to successfully navigate and operate according to country-specific and region-specific tax laws, they are also able to complete payroll services faster and more accurately. And that’s vitally important, too. Workers rely on accurate pay for rent, mortgage payments, and other monthly bills. Failing to pay employees on time or paying them the wrong amount can result in disgruntled employees, low employee morale, and — ultimately — lower worker productivity. On the other hand, paying workers consistently (i.e., in a manner that is always timely and strictly correct) can go a long way to increase employee satisfaction.
If you are an American employer employing Canadians, you may be in for a lot of legal footwork. Instead of taking on that extra burden, an outsourced provider can easily and simply do it for you — all while guaranteeing timely and accurate payroll for all employees.
