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mschuitema
Level 2

A new remote employee is a US citizen working for our US company from his home in Canada. How do I set up taxes?

 
Solved
Best answer January 25, 2021

Best Answers
LieraMarie_A
QuickBooks Team

A new remote employee is a US citizen working for our US company from his home in Canada. How do I set up taxes?

Hi there, @mschuitema.

 

For now, QuickBooks Online only accepts addresses within the 50 states when setting up employees. Meanwhile, you can use journal entry for tracking them using QBO. You can check out our guide on recording payroll transactions manually for more information.

 

I would recommend contacting a tax advisor so they can guide you on handling an overseas address for employees who work for a US company but lives overseas. If you don't have one, not to worry! I can help run a search to find an accountant.

 

Here's how:

  1. Visit the ProAdvisor site.
  2. Enter your city or ZIP code in the Location field. It will display a list of accountants or bookkeepers near you.
  3. You can also filter the service provided, industry served, and product supported to narrow down the results. 

 

We also have an extensive guide on the different payroll reports you can pull up in QuickBooks. This way, you can get a glimpse of your business finances. Please head to this link to get started: How to run payroll reports.

 

If you need more payroll tips or have other questions about managing your taxes, just let me know. I'll get back to you as soon as I can to help.

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3 Comments 3
MichelleBh
QuickBooks Team

A new remote employee is a US citizen working for our US company from his home in Canada. How do I set up taxes?

Hello, @mschuitema.

 

You can set up Nonresident Alien (NRA) tax withholding for a foreign employee in your QuickBooks Online account. I'm delighted to provide complete instructions on how to accomplish this matter.

 

But before doing that, make sure that a specific employee has a Social Security number (SSN). Also, NRA employees must complete the IRS Form W-4 in a specific manner. For more guidance, check out this website: 2020 Publication 15. 

 

Once confirmed, you can now follow the steps below. 

 

  1. Go to the Payroll tab, then select Employees
  2. From the Employee list, pick the employee's name and click Edit.
  3. Tap Next until you reach the Enter federal tax information window.
  4. Choose Single as the status and enter allowances.
  5. In the Nonresident Alien Withholding section, select Withhold as Nonresident Alien and hit Next.
  6. Follow the on-screen instructions. 

 

For more information, please check this article: Set up Nonresident Alien (NRA) tax withholding for foreign employees

 

I've added articles about the acceptable numbers, exception status of RNA, and other related topics. 

 

 

Let me know if you have additional concerns about payroll. I'm always delighted to be your guide.

mschuitema
Level 2

A new remote employee is a US citizen working for our US company from his home in Canada. How do I set up taxes?

Our employee is a US citizen currently residing in Canada. Our company is a US company but all of our employees work remotely. I don't understand how NRA applies.

LieraMarie_A
QuickBooks Team

A new remote employee is a US citizen working for our US company from his home in Canada. How do I set up taxes?

Hi there, @mschuitema.

 

For now, QuickBooks Online only accepts addresses within the 50 states when setting up employees. Meanwhile, you can use journal entry for tracking them using QBO. You can check out our guide on recording payroll transactions manually for more information.

 

I would recommend contacting a tax advisor so they can guide you on handling an overseas address for employees who work for a US company but lives overseas. If you don't have one, not to worry! I can help run a search to find an accountant.

 

Here's how:

  1. Visit the ProAdvisor site.
  2. Enter your city or ZIP code in the Location field. It will display a list of accountants or bookkeepers near you.
  3. You can also filter the service provided, industry served, and product supported to narrow down the results. 

 

We also have an extensive guide on the different payroll reports you can pull up in QuickBooks. This way, you can get a glimpse of your business finances. Please head to this link to get started: How to run payroll reports.

 

If you need more payroll tips or have other questions about managing your taxes, just let me know. I'll get back to you as soon as I can to help.

View solution in original post

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