Canadian working for us company

What laws and regulations are there for a Canadian working for a US company as a contractor? What taxes, paperwork etc have to be filed.

Asked 8 months ago in Ontario
Categories: Tax  Business Law  Labour & Employment

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Shira Kalfa

Answer by Shira Kalfa

Not VerifiedOntario lawyer

Each year, a T4a must be provided to the contractor which notes the amount you have paid the contractor for that taxation year.  
If you pay your worker as an employee, you must first register for an RP payroll account with the CRA and you would be obligated to deduct source deductions (CPP, EI and Income Tax) off each paycheck and remit to the CRA on the 15th of each month. As a contractor, you have no obligation to hold back funds under the Income Tax Act as the income is active and not passive and so does not attract Part VIII tax. Your only obligation is to provide a T4a slip to the contractor and be sure to file the T4a with the CRA!

Posted 7 months ago

Shira Kalfa is a founding partner of Kalfa Law, a business & tax law firm in Toronto. As the lead solicitor at Kalfa Law, Shiras' practice is focused on:

Corporate law including incorporation, joint ventures, partnership agreements, shareholder agreements and corporate restructuring
• Commercial law including asset and share purchase and sale transactions, contract drafting and review and financing
Tax law & tax planning 
Learn more about Kalfa Law here
Call Shira at: 416-631-7227
Email Shira at:

Please note that this is for informational purposes only and does not constitute legal advice to you. Legal advice pertaining to your particular situation can only be provided by a lawyer who has met with you to obtain all pertinent background information necessary to give you a formal legal opinion. For formal legal advice, hire a lawyer (many give a free first consultation). Contact Shira Kalfa, or search the Lawyer Directory.

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