My understanding is that I will be applying to pay my taxes in BOTH Canada and the U.S. once I have residency, but since I am an American citizen, it should not affect my employer's tax situation. I am going to double-check with my work this week and will get back. We have at least one and maybe two other employees who are residents in Canada but American citizens so I'll inquire about that situation. Thanks for the reminder!
From all the things I have been told and my experience - Once you have your PR even though you are an American citizen, you are physically in Canada as a resident of Canada. Tax law is based on where the employee is physically doing the job. My taxes were different based on what state/location I was in - my company would have to switch to a Canadian PEO once I am legally a Canadian Resident and not an American Resident.
I was told that once that switch happened - Employers can 1) hire you as an independent contractor( then you pay ALL the taxes) 2) create a Canadian entity or 3) hire a PEO. It is definitely worth a mention
I am sure if your company already had employees who reside in Canada then they know this already- but also be careful continuing to work for them if you don't yet have an OWP or PR because if they have these things already set up it could be seen as you taking a potential Canadian job.
Another thing to note, when my husband works for an American company and then files his taxes (as a dually) He ALWAYS owes significant Canadian taxes.
Let me know when you learn more - because this is what is keeping me from applying to new remote jobs (as I am not working currently). US remote employers want to hire US remote because they are only set up for those tax situations and the ones set up for the Canada physical location I have to have an OWP/PR for....
This is why my lawyer calls it a tricky/grey area and advised us to be careful.
