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Work remotely from Canada for US Employer

Discussion in 'Canadian Finance and Taxation' started by sanchalanam, Mar 3, 2012.

  1. Could you kindly share what you ended up doing? I'm in the exact same situation as you described. Looking forwards to your response.
     
  2. I am too in a similar situation. From the previous conversations in this thread, it seems like you can do it - live in Canada but earn in USD and money is in your US Bank account. At the same time, the taxation would be a bit complex as you will need to file the tax returns for both US and Canada.
     
  3. Hi agrisiva,
    In such a case, would the H1B period (6 years counter) continue to tick if I am on US payroll and am paying US govt taxes? Also, not sure if the company can employ me on H1B as a W-2 salaried employee even if I am not physically in the US? Also, which region your H1B labor needs to confirm to then? - would the location in the LCA be of your work location in the US or your remote location in Canada?
     
  4. Hello,

    Did you find answer for the following question you asked in CanadaVisa Forum? I am also in similar situation. We got our Canadian PR and currently working under H1b Visa. My employer is willing to let me work remotely. Please help me with that.

    Anjana

    -----------------------------------------------
    So glad I stumbled upon this.

    I've just received my COPR and will be landing any day now. I'm currently a resident of Maryland and have been working remotely for a company in Wash DC.

    Luckily for me my American employer is committed to making this work, but what exactly will we need to do paperwork wise? I'll continue to be paid USD directly to my American bank account. As I'll no longer be a resident of Maryland, I'm assuming that state taxes will no longer be deducted from my paycheck, but it sounds like that might not be true.

    I understand that Canadian taxes are based on your residency, so was expecting I'll need to be paying them first and filing a foreign credit on my US taxes. But maybe I've got that backwards.
     
  5. File your US tax return first. Then file your Canadian return and claim the credit for taxes already paid in the US.
     
  6. Hey, I wanted to find out a bit more about your situation as I am considering something similar

    Do you still get your US income in your US account or do you do something else?
    Are you still treated as an employee or an independent contractor?
    Were your colleagues and boss receptive to your situation?
     
    prachinshah likes this.
  7. Please advise what you ended up doing? I am in a similar situation and need your help please. Thanks.

     
  8. Please advise if you have more knowledge about this situation. I need your help. Do you know how 1099 works?

    Computergeek, post: 1331196, member: 206408"]You can live in one jurisdiction and work in another. The general rule is that one owes income taxes in the country in which one is employed FIRST and then the country in which one lives SECOND. So, you would pay US taxes and then on your Canadian return claim an offsetting credit for the US tax liability (which means, not withholding, but actual tax due.) This INCLUDES US social security and medicare tax, as well as US income taxes (including state taxes.)

    However, the fact you will be working in Canada makes this more complicated (versus driving over the border to perform your services.) The real liability likely falls on your EMPLOYER though, not on you, but were I you I'd find someone familiar with both US and Canadian tax law (including the most exercised tax treaty in the world - that between the US and Canada.) You want to make sure that you are not exposed in any fashion. One good thing: the US and Canada have a totalization agreement, so what you pay into US social security will count against Canadian CPP.

    It's far simpler if you do this as a contract position (in which case you are no longer an employee, you are an independent contractor.) But that's a complex shift, so I would strongly recommend speaking with an experienced accountant.

    Your requirement to stop filing a US tax return would only end when you ceased earning any US income.

    I'm not sure how working remotely in the fashion you described would affect your H1B visa.

    Good luck![/QUOTE]
     
  9. Are you still continuing in this situation? I need you help please. Thanks.

     
  10. Hello Santhi,

    did you get any answer on this? I am going to be in the same situation in couple of weeks.

    Thanks,
    Jignesh Jani.
     
  11. Hi @sanchalanam - Thanks for initiating this post, the questions and comments mostly revolve around taxation. However I wanted to ask you another million dollar question and would really appreciate if you could answer it as I see you might have been a Canadian citizen by now.
    Also if anyone else has an answer to this, you are most welcome to comment as any information on this is highly beneficial for everyone riding in both boats :)

    I have tried to be elaborative as I could, here's my question:

    "While residing in Canada and getting your days counted towards applying for canadian citizenship while still working for a US company on H1b and being paid in the US only, did you get any kind of complications from CIC when you applied for your Canadian citizenship?

    Did they ever suspect your ties to the US and your intent to seek Canadian citizenship?
     
  12. Hi, I'm posting my personal experience hoping it will help someone else in the future.
    I'm a US Citizen; my wife is dual (Canadian & US). We came to Canada because my wife company had a 3 year project in Canada. A very well known firm did her Canadian taxes and both of our US taxes (since in the US you file jointly, and you can't do that in Canada).

    So, I "quit" my US job and kept on working as a consultant, paid by the hour. I was paid by a small company with no ties to Canda in the US, to a US bank, in US funds. I was telecommuting (logging to my US employer remotely).
    The reason why he had to do it like this is because my employer wasn't register in Canada to pay my taxes or retention in Canada. One year I got a 1099-DIV, but most of the times I just got pay statements (I didn't have to issue an invoice, I would just email my boss how many hours I worked during the month)

    1. Our immigration lawyer's advise (before my Can PR came, and while I wasn't allowed to work in Canada): is that I was considered unemployed in Canada. So I had no problem having an income in the US (while I waited for my PR, while my status was "temporary visitor".
    2. For tax purposes:
    a) The big tax firm would file first taxes in Canada first. They would request for an extension in the US, and file US taxes after after filing in Canada. And they would do this to pay Can tax first and avoid paying this in the US. We would pay taxes in Canada, and pay smaller amount (SSN and not sure what else) in the US.
    b) for ME only in Canada (CRA): I used to declare my income as "Foreign Income", this worked for year 2015, but on year 2017 CRA contacted me, asked me to fill a 2 page questionnaire and after this they determined that I was "Self Employed" (since I work by the hour, I don't get any benefits, I take my own vacation, etc). CRA recalculated my 2016 tax to "Self Employed".

    Regarding the US/Can filing.. I'm pretty sure that a big prestigious tax firm knows what they were doing.
    What the immigration lawyer told me (about being "unemployed" in Canada): I trust them (they are well known ... expensive, paid by the company..)
    What I did filing my Canadian taxes?? (the "Self Employed" vs "Foreign Income")... I guess "Self Employed" is correct since CRA reviewed this, however I'm consulting / researching if I can question CRA and file as "Foreign Income" because as Self Employed I have to pay CPP (Pension Plan), and this is quite a bit of $$...

    I hope this helps someone... I'm on my way back to the US... Good luck to everyone.
     
  13. Hi,

    Thank you all for valuable feedback but I am still not clear on some of the things.
    If anyone can please reply.

    I have Canada PR and moving soon, holder of Indian passport.
    I work in India branch of US based company but do not have any type of USA visa.

    Now if I move to Canada on PR and my company employs me to US office can I work remotely being employee of US office without US Visa?
    Is it legal to work like that or do I require US work visa?
    Company is not having any office in Canada.
     
  14. hello ...i am looking for guidance on travelling everyday to USA for work on H1 & staying in Canada...has anyone successfully done that?
     
  15. I assume you have Canadian PR or Canadian citizenship?
     

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