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Rox_P
Level 1

Adding foreign-based employee to payroll

We recently hired an employee outside Canada and I'd like to add her in our payroll. However, the employee doesn't have a SIN and an address here in Canada. How do I set up her payroll account? 

Solved
Best answer October 24, 2024

Best Answers
KimAnnVA
Level 5

Adding foreign-based employee to payroll

If I understood correctly, you are in Canada. Not sure which country employee is from to recommend how to handle, but generally when I have dealt with you must find out how identification and taxes work in their country.  I also recommend the person getting an account in CAD currency if that is what your home base payroll account currency is in to avoid the international fees and daily exchange rate.  If you go that route, their pay contract should be changed to be in CAD currency for the set amount. 

 

Please be aware that international fees can be high in some places and daily exchange rate varies.  This can deduct a lot from someone's pay and they will expect you to cover their fees so having the same currency bank account they are being paid in is recommended, let them handle the currency exchange on their end.  

 

You may also want to consider upgraded to QuickBooks Payroll with HR services so they can assist if you can't figure it out.  You can try an accountant for end of year forms, but they don't handle payroll requirements. 

  

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5 Comments 5
KimAnnVA
Level 5

Adding foreign-based employee to payroll

If I understood correctly, you are in Canada. Not sure which country employee is from to recommend how to handle, but generally when I have dealt with you must find out how identification and taxes work in their country.  I also recommend the person getting an account in CAD currency if that is what your home base payroll account currency is in to avoid the international fees and daily exchange rate.  If you go that route, their pay contract should be changed to be in CAD currency for the set amount. 

 

Please be aware that international fees can be high in some places and daily exchange rate varies.  This can deduct a lot from someone's pay and they will expect you to cover their fees so having the same currency bank account they are being paid in is recommended, let them handle the currency exchange on their end.  

 

You may also want to consider upgraded to QuickBooks Payroll with HR services so they can assist if you can't figure it out.  You can try an accountant for end of year forms, but they don't handle payroll requirements. 

  

Rox_P
Level 1

Adding foreign-based employee to payroll

Hi there,

Thank you so much for your response, it's really helpful. Our newly hired employee is from Ethiopia. Aside from getting an account in CAD currency, does she need to fill out any government form? Also, do you know how will I set up her payroll account in Quickbooks? Is there a different way to set it up considering she's not a resident here in Canada?

KimAnnVA
Level 5

Adding foreign-based employee to payroll

I have not paid anyone in Ethiopia but it looks like they should have a TIN #.  You could pay them as a contractor and research what end of year tax form you are required to send them, I apologize, I'm not sure what end of year tax requirements there are.  

KimAnnVA
Level 5

Adding foreign-based employee to payroll

I would recommend having a payroll contract and some form of identification on file, this usually covers you. 

Amanda-B
QuickBooks Team

Adding foreign-based employee to payroll

Hey there, Rox_P.

 

Thanks for connecting with the QuickBooks Community! Before proceeding, I encourage you to speak with an accounting professional to ensure a positive outcome with meeting with associated government guidelines. Having an accountant can be beneficial for you and your business. You can add your accountant to your books by following the steps listed here. If you don't have an accountant, you can find one who has experience using QuickBooks near you by clicking here.

 

If you have any other questions, feel free to reach back out.

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