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RURAL MUNICIPALITY OF RITCHOT · L-1A FIELD GUIDE

Should unused payroll reserves be described as employees?

Sources checked:

THE DIRECT ANSWER

No. Funds reserved for hiring and actual staff are different evidence.

Keep the plan and current operation distinct

Provide genuine hiring plans where relevant and accurate current staffing records. Do not turn budget capacity into a completed organizational chart.

The share register and stock certificates showing the Canadian company's ownership of the US entity, the US entity's formation documents, and evidence that both operate: leases, payroll, invoices and financial statements. Payroll and human resources system records showing reporting lines by date, approved requisitions, performance review assignments, and organisational charts issued at known times. The transferee needs one continuous year of qualifying employment with the organization abroad within the three years before the petition, and in a family corporation the evidence is payroll and tax slips rather than an employment contract that may never have been written. The corporate relationship is shown by share registers, articles and annual returns for both companies, plus evidence that the U.S. subsidiary is doing business: a lease, payroll, tax filings, customer invoices. Ask what the destination entity can actually produce: signed customer agreements, a premises lease, equipment in service, employees on a payroll, tax registrations and any trade licensing the work requires.