Remote working from Canada for US company - Taxes and 401K

[apz]

Hi guys
I am on H1-B in US, got Canadian PR and I am planning to leave US and live in Canada. My employer is fine with all remote work provided that I show up every now and then (nothing frequent). I have couple of questions:
1. Since I am still working for a US company and they have my H1-B valid for a couple of years, would the company have to change something on their side to calculate my new taxes which would be automatically deducted from my paycheck? How would taxation work in general now since I live in Canada?

2. Since I would be moving to Canada for good can I still be a full time employee with the same employer?

3. For the 401K contributions which I have made already what is the best route to take? Should I leave them in US or bring then to Canada etc.

Looking forward to your help.

Thanks

 

[tuitui509]

On H1B you can not work abroad long term, it violates the terms of H1B. on H1B you have to physically present in the country. You can work out with your employer on your payroll but you can not be paid while you can not legally work for your employer in the states. if you employer has an arm in Canada then you can transfer over and get payroll in Canada as well.

Remember there is no loopholes, they want to close this as much as possible. Say if it is possible to work remotely from Canada for your US employer. then you pay the taxes in US thus Canadian government will not get a penny and meanwhile you can collect low income benefits from canada living. but Canadian find out the bank account number says it other wise. doing this could make you commit into fraud of tax eviction, and illegal to work in the united states as your legal status requires you physically present in the united states.

You can only do this for the short term but not long term.

possible solution:
1. Employer Canada Arm transfer
2. find a Canadian entity to initiate contracts with your employer in the states, they run your payroll and your employer pay them based on the contract
3. live on the boarder daily commute between Canada and US, as Canadian PR you can get Nexus Card which would help you with board crossing status. few already doing this while living in Canada but work in the US on H1B

Hope this helps.

All my personal opinion not legal advise. Please consult an immigration lawyer for details.

 

[APPNOV2014NY]

Regarding #3, you can do 401k --> IRA --> RRSP. You will lose around 15% in this transaction.

 

[tuitui509]

Roth is another option, which you only lose the tax part of it which is 10-15%. do either RRSP or Roth conversion do it before your landing otherwise no use, you will be double taxed.