Canadian PR working for US company remotely from Canada, need suggestions

[chappan]

Hello,

I am in US on H1B. Since I have got my Canadian PR, I am planning to move to Canada soon. I have a US based employer who is interested in hiring me. My questions are:

1. Does the employer have to be registered in Canada to hire me? Meaning do they have to hire me in their Canadian entity or can I still be hired for US based entity and work from Canada? For example, if company ABC which is primarily US based is interested in hiring me, do they need to hire me in ABC Canada? My understanding is that if they choose to hire me in ABC US then they'll have to sponsor visa for me. However, if they have a Canadian entity, I can be hired in ABC Canada and then work remotely with the team in ABC US.
2. What will the tax implications be?

Thank you in advance!

Regards,

 

[USH1B]

Hello Chappan,

1. To be eligible for canadian citizenship, you have to maintain your PR status by living in Canada and also pay Canadian taxes.

2. You can still work remotely for your US employer either as a consultant (as a Canadian PR) or as an overseas employee without paying US taxes. You can pay the local canadian taxes.

3. It is better you sacrifice H1B and work from Canada. Based on the consultancy agreement or a oversees employee contract, you can apply for B1/B2 visa to visit US from time to time.

I am also right now in H1B and will be moving to Edmonton (AB) next month. In my case, my employer is opening a branch in Edmonton and they have offered to place me in their Edmonton office. I will be sacrificing my H1B and will try for B1/B2 visa after I move to Edmonton.

Hope this helps

USH1B

 

[chappan]

Dear USH1B,

Thank you for your quick response!

Just need a clarification on point 2. When you say "work as a consultant", what exactly do you mean? Oversees employee from my understanding means that company ABC (per my earlier example) hired me as a Canadian employee in their Canadian branch, correct? How can I work as a consultant for US based employer? Wouldn't it require H1B?

You are absolutely right that giving up H1B is the best option from overall perspective. Right now, I am looking around for all options. I still have 5 more months on H1B before my 6th year expires. BTW..I already have B1/B2. It is still valid till mid 2016.

Regards,

 

[USH1B]

Hi Chappan,

If your employer has a Canadian branch, then please check if they can offer you a "remote" employment from their canadian office. Overseas employees of a US company don't have to be on H1B. We have a couple of overseas employees and also a overseas consultant in our company who dont't pay any US taxes but only pay their home country / local taxes.

I did not know that one can possess a valid B1/B2 while having an H1B at the same time.

Where do you live in the U.S? I am in Houston TX.

Good luck

USH1B

 

[chappan]

USH1B, I live in Michigan.

Thank you for the info! Which profession are you in, BTW? I am an Information/Network Security professional.

Regards,

 

[tridmax]

Why don't you transfer, if your company have branch in Canada? (So that H1B hassle will go). I was working on H1B visa 2 years ago and facing green card issues. Then I requested them to transfer me to Canada and I have B1/B2 multiple entry visa as well. I'll go to USA back and forth every 4-5 months.
I hope this will help.

 

[chappan]

Hello Tridmax,

That's the ultimate plan

However, I still haven't been hired by the potential employer. My employment will be purely based upon if they are ready to hire in Canadian Branch or not. I just wanted to make sure that I understand the process before I approach the HR with options.

BTW..I hope you already know this. Legally, one can't work on B1/B2 visa. It is only meant to be used for business meetings/training/tourism. I already have B1/B2 valid till 2016.

Thank you!

Regards,
Sandeep

 

[USH1B]

Chappan,

I am in the accounting line in the O & G industry.

USH1B

 

[shrusrinivas]

Hello Tridmax,

That's the ultimate plan

However, I still haven't been hired by the potential employer. My employment will be purely based upon if they are ready to hire in Canadian Branch or not. I just wanted to make sure that I understand the process before I approach the HR with options.

BTW..I hope you already know this. Legally, one can't work on B1/B2 visa. It is only meant to be used for business meetings/training/tourism. I already have B1/B2 valid till 2016.

Thank you!

Regards,
Sandeep

Hello Sandeep,

I am in the same boat as you were 5 yrs ago. How did it work out for you? and the Canadian Hire as u mentioned, did that work out?

Thanks
Shruthi

 

[yyl16]

Hi -

I am looking to move to Canada as a PR and my current employer offers the option of working remotely from Canada, provided that I do office visits every 2 months. I am currently on OPT.

1) How does the taxes work? Am I allowed to keep getting paid in USD to US account, and get W-2 at the end of the year, or I need a T-4?
2) If I do need to paid in Canadian $ and get T-4 at the end of the year, I am assuming my OPT will no longer be valid?

Any help is much appreciated!