I think what's clear is that regardless of how complex this appears, we should never blame mistakes or loopholes arising from this complexity on the law makers. Only on tax payers.
And the cost.
A Canadian payroll dependency chart
151–160 of 301 posts
Re: A Canadian payroll dependency chart
#152I'm in the US but I'll say for sure that things like this are about half the reason I haven't hired any employees for my LLC. I wish I could, but I'd be de facto hiring an accountant as well!
This is why PEO's like Justworks are great IMHO. You can offer the big company benefits experience without getting ground to dust by federal/state/local regulations. I can't imagine going back to the old way at any small company.
Re: A Canadian payroll dependency chart
#153The fun part about being Canadian is that you get to compete with the entire world for remote jobs with Canadian companies, but no company based outside of Canada wants to deal with hoops required to hire a remote employee based in Canada if they don’t already have a presence here.
Try finding work as a sole proprietor contractor, remotely for a US company. It's cheaper for them vs hiring an in-office employee, and with higher US tech salaries and currency conversion, you'll generally come out ahead too
A foreign company doesn't need to make it easy to hire an employee who is a Canadian.
If there is an advantage to a Canadian to be employed from a foreign company, it's maybe a bit more up to them if they want to do a bit to stand out a lot.
A single person corporation in Canada akin to a professional corporation like a doctor or lawyer may have is not out of the question, especially with the advantages it can provide.
Re: A Canadian payroll dependency chart
#154I'm in the US but I'll say for sure that things like this are about half the reason I haven't hired any employees for my LLC. I wish I could, but I'd be de facto hiring an accountant as well!
If you ever consider to, *given the remote work trends*, consider this: I'd place high importance on the employee state to the state you are hiring them out of. Some states are a nightmare to deal with. For example, NJ, CA, NY and OH. Once you are registered in X state, your company is fair game to be pursued for any kind of perceived (lack of) compliance by that state, long after that employee has left you for anoth…
I got a notice for unpaid back taxes from some state agency in California for a company that had been sold over a decade earlier, merely because we had one part-time employee in California for a few months.
Re: A Canadian payroll dependency chart
#155Earlier quoted context omitted.
Well transfer payments are a lot more complicated than some folks would have you believe - Canada as a nation benefits from all our parts being within a common business zone so while some areas are mineral rich other areas have strong service economies that have needed help through the pandemic.
"Needed help" because the powers of the day decided to lock down the economy far past any reasonable length of time. I suppose if I quit my job I "need help" feeding myself too. Another example is Quebec sitting on a gargantuan natural gas reserve, but preferring to keep it in the ground because it's more advantageous to simply receive payments from other provinces (Alberta). Carbon/emission considerations aside, thi…
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Re: A Canadian payroll dependency chart
#156Earlier quoted context omitted.
It would be very nice if they would publish a libreoffice spreadsheet, yes. Heck, it would be very nice if they would create a libreoffice spreadsheet, even if they don't publish it. If they had to read their own document, it would probably be far better written.
> If they had to read their own document, it would probably be far better written. Perhaps not; I've always had a strong impression, whenever reading documents derived from tax policy, that the "architecture" of such documents is the way it is mainly for maintainability . Which is to say: the effective tax code at any given moment, is the emergent result of the interactions of all the current tax laws on the books. A…
Real life is imperative, dynamically scoped, all global variables, and every instruction contains an implicit branch.
Re: A Canadian payroll dependency chart
#157It's a shame that we don't have open formulas in code form published by the government. The only way that I know how to do this reliably is using the web form provided by the CRA here: https://www.canada.ca/en/revenue-agency/services/e-services/... As you can imagine, doing this by hand is quite painful and error-prone.
The issue is too pervasive, having a formula published won't solve it.
You will need the historical formulas, as well as all the underlying data, not even accounting for the publication delays and errors, missing informations, discretionary classifications, etc.
What we need is all that data and code in an introspectable flow of code and data:
a blockchain, containing both your data and the smart contract used to perform the computations.
Re: A Canadian payroll dependency chart
#158I'm in the US but I'll say for sure that things like this are about half the reason I haven't hired any employees for my LLC. I wish I could, but I'd be de facto hiring an accountant as well!
If the issue is figuring out payroll (rather than accounting complexities that arise from having additional expenses), you can also hire via remote.com or deel.com, even if hiring domestically, as long as your employee is either salaried or operating as an independent contractor (not actually an employee in that situation though)
Employers of record ensure compliance with all local laws and basically just bill you the employee's fully loaded cost, plus their service fee
Re: A Canadian payroll dependency chart
#159It's a shame that we don't have open formulas in code form published by the government. The only way that I know how to do this reliably is using the web form provided by the CRA here: https://www.canada.ca/en/revenue-agency/services/e-services/... As you can imagine, doing this by hand is quite painful and error-prone.
It could be a github repo. There are likely some digital government projects and software providers who's software might be a good fit for this kind of thing.
It's worth noting that the Government of Canada and various other gov orgs do have GitHub repos where they already host a variety of algorithms, configs, the design system, and a few others, so it would be good to add something like this.
https://github.com/canada-ca https://github.com/statcan
The Bank of Canada even has one where they host various economic models
Re: A Canadian payroll dependency chart
#160Earlier quoted context omitted.
I want something similar for my mortgage calculation. For example I cannot get my bank (TD Canada) to inform me of how much each payment goes towards my principal. I'm pretty sure I've calculated it properly, however the number is often in the 10's of dollars off from what the bank reports my outstanding balance is after a payment is made. Also don't get me started that I can't use an api to get my account details an…
Also don't get me started that I can't use an api to get my account details and statements in Canada. Anyone know if there's any ongoing effort to this effect - i.e. to force banks to implement a common API for querying data held in their accounts? A brief search reveals that Canada is of course missing from https://en.wikipedia.org/wiki/Open_banking
Consulted in the space about 3 years ago. Regulatory powers lack tooth. Most large banks are not ready (i.e. poor security, complex backend, no scalability, etc.) and are scrambling to find solutions while begging for my time. Also, lots of discussion and jostling and fear of what might happen when it goes live. No one can truly agree on the legal framework as well so feels like much work to be done.
Was also part of the implementation phase in the UK and the regulatory powers there definitely sped things up.