Business Travelers and Employees on International Assignments
Many Canadian business owners either personally go or send their employees on business trips to the US often forgetting that such movements can unintentionally trigger taxation requirements, particularly in the areas of employment and social security taxes. In addition, workforce border-crossing activities can increase the company’s exposure to US federal and state taxation at a corporate level. Finally, an extended business travel can spill over into the area of immigration, with local government barring that employee from future visas and even blocking the entire firm from receiving visas.
Similar issues exist on the flip side, when foreign nationals come to provide services in Canada even on short-term basis.
With increased business globalization and a desire to boost tax revenue on the part of the taxing authorities, it is important to be cognizant of the tax and other compliance-related issues to minimize any potential risk to both the employees and the company. We can assist you with both the advance planning as well as an annual tax compliance maintenance.