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    CanBiz118's Avatar
    CanBiz118 Posts: 2, Reputation: 1
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    #1

    Jul 5, 2010, 08:08 PM
    Pre employment retainer / loan / sign on bonus
    Hey All,

    Quick Canadian tax questions for you.

    As an employer I wish to offer a candidate a retainer type payment. The situation is that we want to employ the guy but until September we will not know for 100% certainty that we can afford him as it all depends on a large contract getting the sign off.

    Now I know the guy is in demand so I would like to pay him something to hold off going anywhere else until we know if we can get him (he is a very very good games developer). In this situation how do we work out the payroll tax? Lets say for arguments sake we pay him 4k on Friday and come September he joins the company. How do I pay the employer required tax? Do I pay it once he joins?

    Thanks for all the help!

    Steve
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jul 6, 2010, 08:49 AM
    Steve:

    Sorry, but this forum deals ONLY with United States tax issues.
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