QUESTION: I have a registered Canadian business (BC incorporation). When we hire US individuals on a commission basis, are they considered 1099 employees, between them and the IRS or do we have to declare to the IRS as well? I also work as a 1099 employee for a California based company. Do you recommend I obtain a "paper" B-1 visa? Would it be better that commissions paid by the California corporation be made to the company instead of myself? Do I file with the IRS and include Canadian income? ----------------------------------------------- david ingram replies: Do NOT use this answer to proceed without sitting down and talking with someone like me an make sure that what you are doing is legal. For instance, a B-1 visa does NOT allow you to work in the USA for an American Company. You can go to jail and many have for trying to Use a B-1 visa status to work for a US company IN the USA. If you are working for a US company in Canada, you do not need any visa at all. If you are a straight commission agent working in Canada paying your own expenses and working at and on your own time, there is no reason that the US company "has" to report the money paid to you at all. You are clearly self-employed. In between self employed and a captive agent, they could pay you and issue a 1042S which is for monies paid to foreign persons. However, even the 1042S is usually for foreign persons performing the services in the USA itself and you can NOT do that on a B-1 Visa. A B-1 visa is for a person performing services for a CANADIAN company in the US. AND, to be clear, you can NOT be selling a US product in the US through a Canadian company. If you are hiring US individuals as employees to work in the USA, you would have to establish a US payroll account and deduct US taxes, Medicare, and pay worker s compensation and employment insurance where required. If, they are free agents, you would just give them their commissions and would not have any particular reporting rules to Canada or the US. It might be suggested that you should issue T4A-NR slips but these are not likely necessary. Of course, any company that wants to be absolutely within any supposed IRS or CRA rules would issue the T4A-NR and 1042S slips respectively. Take it easy. It sounds to me that you need to get some good advice before you proceed any further. Answers to this and other similar questions can be obtained free on Air every Sunday morning. Every Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram am a permanent guest on Fred Snyder of Dundee Wealth Managers' LIVE talk show called "ITS YOUR MONEY" Those outside of the Lower Mainland will be able to listen on the internet at www.600AM.com <http://www.600am.com/> Call (604) 280-0600 to have your question answered. BC listeners can also call 1-866-778-0600. Callers to the show and questioners on this board can also attend the Thursday Night seminars on finance and making your Canadian Mortgage Interest deductible. David Ingram's US/Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists Home office at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 9 AM to 9 PM 7 days a week (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com <http://www.centa.com> . If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" This from "ask an income tax and immigration expert" from www.centa.com <http://www.centa.com/> or www.jurock.com <http://www.jurock.com/> or www.featureweb.com <http://www.featureweb.com/> . David Ingram deals on a daily basis with expatriate tax returns with: multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San Antonio and Houston Texas Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax and Immigration Wizard Income Tax and Immigration Guru Income Tax and Immigration Consultant Income Tax and Immigration Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist expert preparer consultant expatriate anti money laundering money seasoning FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Garland, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon. 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