We are a small software based start up in NJ, we recently got a couple of projects from Canada and we're loving them.
We came across this guy in Canada, he is very talented and we think he will be very helpful for us. But he is on his study permit in Canada and he has an off-campus work permit too. So, can we hire him?
So you are a US company, he is a US citizen but going to school in Canada?
You should be able to just have him fill out the paper work and put him on payroll and direct deposit. I imagine he has a permanent address in the states somewhere.
Might be different if he is going on site to work on location in Canada offices.
But if it's a temporary gig (or if I mis-understood it and he is Canadian) then just setup a contractor relationship with him. Make it clear it's a contract position for set duration, and let him know he'll have to claim this money and pay his own taxes on it at the end of the year and set him up on a 1099 form.