tax compliance, benefits and workers comp
I read your article ‘Professional Employer Organization (PEO): Definition & Features’ which I found to be very informative.
I’m a Canadian business with no location in the US but I do have an IRS EIN. Looking to hire a US employee, potential employee is a US citizen, not Canadian.
1- Can I hire this US employee to work in the US?
2- Would PEO provide their services even when I’m not a US entity. I do have a EIN
With one employee, a PEO is likely to provide more than you need. Nonetheless, Justworks may be able to provide an option for you. (I’m not sure if you’ll be required to have a business address in the US or not). If your employee works in the US, for a Canadian business, you’ll want to be sure that whichever PEO or payroll provider you use, they’re aware of US and Canadian payroll laws, and are able to pay taxes to the various entities. You can get US tax compliance, workers comp and benefits (even for just one employee) with many payroll companies as well. For instance, Gusto provides HR, benefits and payroll and costs only $39/month + $6 per employee. Justworks is a PEO, but costs $99 per employee in comparison. Another option is to call a PEO broker (it’s free) like the Huldisch Group: https://fitsmallbusiness.com/the-huldisch-group/ to see if they’re aware of a PEO vendor that supports both Canadian employers and US employees. I’ve provided two articles to help you do more research.