Processing payroll in United States varies across states, very different from Canada

Obtain employer guide for witholding from each state to ensure compliance
By Ray Krause
|Canadian Payroll Reporter|Last Updated: 04/01/2011

Canadians measure speed and distance in kilometres, Americans use miles. North of the border, the prime minister is the head of government. South of it, it’s the president. The divide continues into payroll — there are some significant differences in handling payroll in the United States, something important for Canadian payroll professionals to be aware of in the event they need to pay employees in the U.S.

Federal tax

As with all payrolls, U.S. or Canadian, it must first be determined whether the person to be paid is an employee in the eyes of the Internal Revenue Service (IRS).