[VPM] RFC: paying Canadians with US dollars

[Carl Constantine]

On Tue, 8 Feb 2005 13:43:50 -0800, Darren Duncan
<darren at darrenduncan.net> wrote:
> I have a question for those of you experienced in either being a
> contractor or in hiring contractors, particularly for technical or
> computer jobs such as software programmers.  I am asking it from the
> context that I plan to hire contractors myself in the future, mainly
> for programming work.
> 
> 1. How acceptable or normal is it for you, as a Canadian, to
> negotiate a contract, either on a per-hour basis or a per-job basis,
> denominated in American dollars, rather than in Canadian dollars?

I've done all of the above. Negotiated in Canadian and US dollars.
I've usually done it project based as opposed to hourly as it's more
affordable for the client and thus more likely to use you. Then you
charge hourly for maintenance.
 
> This is assuming that you are living more or less full time in Canada
> and your primary expenses are denominated in Canadian dollars; hence,
> your effective income would be variable depending on the currency
> exchange rates.

Correct, but that's what PayPal or similar sites are for ;-)

> To simplify this question, assume you have the choice as to whether
> any actual currency exchanging is being done by yourself or the other
> party, so you can factor this detail out of your answer.
> 
> My reason for asking is that I am considering, with my new
> Victoria-based consumer software business, to try and do all
> accounting possible in terms of American dollars rather than Canadian
> dollars.  I'm not sure how common this is, or whether it is even
> possible considering government rules, or whether it is the best
> choice.

Get a good accountant or you'll run into trouble. 

Tony Charles-Roberts
Moore Roberts & Co.
656-5547
tcr at mooreroberts.com

and he's right out your way on Bevan Ave. Tell him Carl from Computer
Troubleshooters sent you. Can I have him call you? (email me
privately)

> 2. So have you heard of any Canadian businesses operating this way
> before?  Anything to watch out for, such as government rules?

Yep, I do it all the time.

> 3. Would you be willing to accept such a fluctuating rate in your own
> pay, if you were in this position?

Usually it's in our favour until recently. But yes, I would.