Many companies face foreign obligations for reporting, withholding tax
Many Canadian companies may be faced with foreign obligations for reporting and withholding tax on wages paid to employees performing employment duties outside of the country. Cross-border travel continues to be a common trend to meet business essential needs. Whether the business needs are for employment services directly connected to a establishment in the United States or for servicing clients, Canadian employers should be aware of the U.S. payroll reporting and withholding requirements for employees working in the U.S.