A client is planning to use the services of a Canadian citizen and is asking for guidance on reporting the payments. First time I've encountered this. The contractor lives & works in Canada and arranges for items to be shipped from Canada to the US. Payment is on a commission basis and the individual will be free to perform this same service for other companies similar to my client's. Seems to me he might need to issue a Form 1099 at year-end and that's about it. Is there any separate reporting that needs to be done to Canada?
-
Last edited by JohnH; 11-26-2007, 08:37 AM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith -
Canadian
Boy am I tired of these Canadians taking American jobs. JUST KIDDING IT IS A JOKE, PLEASE DO NOT BAN ME!!!!
OK, the contractor lives and works in Canada, which means he is not a US citizen, which means he does not have a Soc Sec Number. So, exactly how do you send him a 1099? I would have him send your client an invoice for amounts due and cut the checks to him - no reporting necessary that I know of.
MattI would put a favorite quote in here, but it would get me banned from the board. -
Thanks
Yes, I should have been more careful with the wordking of my post.
I was more or less thinking that Canada might have an equivalent of the 1099 and if so, would a US company be expected/required/asked/etc to file it with them if the company doesn't have a physical presence in Canada. I did do some reading on the definition of an independent contractor in Canada, and their definition seems to track along the same lines as the IRS. But I couldn't find anything that says Canada expects any sort of reporting of payments to independent contractors, so I guess a year-end courtesy printout sent to the contractor will be all he needs to do."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
-
Canada does not have the equivalent of US 1099's - they go by honor!
Your US firm should issue a 1099 -there are some rules (which escape me right now) on reporting 1099 income to aliens.Comment
-
Makes sense to me
>>> Canada does not have the equivalent of US 1099's - they go by honor! <<<
It makes sense that they would go by the honor system. All my Candian friends are as honest as can be, and they enjoy paying taxes so much I just can't imagine any of them failing to report all their income.
"The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
Comment