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. 

• SSN vs. ITIN
• Exemption status of foreign employees with particular visa types

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

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.