Canadian Citizen Working In Canada Remotely for US Company

mariojohnson008 · Post by **mariojohnson008** » Thu Apr 16, 2015 2:49 pm

Hi,

I work for a company as a remote recruiter. The company is a S-corp in USA. I get paid monthly as a contractor.

How do I file taxes? Do I setup a company? I also have a part time job in Alberta.

What are my options? Do I need to file anything USA? Does the S-corp in USA need to show anything?

Any/all help is appreciated.

Mario

nelsona · Post by **nelsona** » Thu Apr 16, 2015 2:59 pm

You are simply a self-employed individual. You report yourt income to CRA and that is all.
What advantage do you see in incorporating? Do you have liability issues?

mariojohnson008 · Post by **mariojohnson008** » Fri Apr 17, 2015 11:15 am

Thank you.

I work for someone. I also have this as part time recruiter job that I help my client in USA. Do I just report that on taxes? What if I become a partner in that business in USA? Is there any tax advantage in becoming a partiner in US business?

Chrisbap · Post by **Chrisbap** » Fri Apr 24, 2015 12:50 am

I'm in a similar situation, but slightly different. I am a Canadian citizen currently living in the US, working for a US company on a work visa. I telecommute from home. In a few months, I will be moving back to Canada, but intend to continue telecommuting for the US company. I know that I will then need to pay Canadian taxes rather than US taxes.

My question is how to best get paid. I think that one option is to remain an employee. My employer would need to get a Canadian Business number, then they can issue a T4 like any other Canadian company. Alternatively, I could become a sub-contractor (either setting up my own company or registering as self-employed). What are the advantages or disadvantages of these options?

One additional complicating factor is that while I DO want my tax with-holdings to go to Canada, I would like my pay to stay in the US. My wife and I have set up various retirement/life insurance/college fund vehicles that I want to keep funding. The plan is for my US income to stay in the US to pay the US bills and her Canadian income will pay the Canadian bills. It would be painful if I have to exchange my USD pay into Canadian, and then exchange it right back to USD to pay these bills (losing money in both directions).

Any insight into this wrinkle?

nelsona · Post by **nelsona** » Fri Apr 24, 2015 9:43 am

You should become a contractor, plain ansd simple.
First, most firm won't want to set up Cdn employee (yes, they MUST to keep you employee).
Second, The fringe benefits offered US employees are of littler value to you.
Third, as a contractor, you can ask for all that extra money that would otherwise go to your benefit package to come to YOU instead.
Fourth, many of your expense will become deductable.
And finally, which is what you concluede with, contractor will be paid by a check in USD, which you can depasoit anywhere you wish.

In this case, it's a non-brainer.

One thing though is that, other than retirement vehicles, you face Cdn taxation on education funding. And there are many dealers which wiill not keep Cdn resident clients.

Just as an aside -- ignore if you wish: Why you would be 'funding" life insuarnce is beyond me. have you seen the building these folks build with the profits from these dubious "investments"? Term life is the only life insuarnce you should have, and invest in something else.

nelsona · Post by **nelsona** » Fri Apr 24, 2015 9:44 am

But realize that regardless of how you get paid, you will NOT be a US resident for tax, insurance, or any other purpose.