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Open Work Permit - US agency - Payment to chequing account

Discussion in 'Canadian Finance and Taxation' started by Cool007, Dec 3, 2018.

  1. Hi Everyone,

    I am on open work permit from May 2018. I have been working for one of the company as Desktop support for almost 5 months.
    I got a good offer from a US recruiting agency, however work location is in Richmond, Canada.
    US Agency would like to pay me full amount(US Dollars) bi-weekly into my chequing account without any deductions.

    1) Is it fine for me to accept that money in my account directly and pay my taxes once a year?
    2) Should i join any well established incorporation to run my payroll?
    3) Is it possible to open my own incorporation and run my payroll?

    My only intention here is to make sure I pay my taxes and also keep my profile clean to submit for PR.

    Please help me understand how should i deal with this situation?

  2. You company can't employ you in Canada and pay you in US dollars via direct deposit without deductions while you are on a work permit. They must have offices in Canada if you are required to work in Richmond?
  3. My guess it that he would be considered a contractor by that company, but the rules around contractors are tricky and CRA looks at it quite in detail. If you only work for that company, have no control over the work you do (i.e. hours, how the work is done and where), if you use the tools provided by this company (i.e. their computer) and some other criteria, then you are in fact an employee and this company is bending the rules to decrease its tax burden (and you can be perceived as doing the same as the contractor status provide tax advantages).

    Now the implications of CRA reclassifying you as an employee would have significant implications including fines, additional taxes and interest (and this is definitely an area CRA pays attention to), but on the immigration side it would also have consequences as you would be considered self employed and not an employee which would limit your ability to apply for PR.
  4. Thank you for all your valuable response, i decided to stay back and not to join and get into any problem while filing PR.

    Once again, really appreciate you people trying to help others who are in need.

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