Working virtually for a US company

virtualworker · Post by **virtualworker** » Wed Jun 24, 2015 6:03 pm

I've been offered virtual employment for a US company who has no other Canadian employees. If I work from home (in Canada) do I pay Canadian taxes or US taxes? What is my employer responsible for?

And how would the scenario change if I worked as a contractor instead in this same scenario.

Thanks.

nelsona · Post by **nelsona** » Wed Jun 24, 2015 6:46 pm

If he pays you as a contractor, he only needs to send you a check, no withholding.

If he wants you as an employee, it MUST be a CDn employee, with fed/prov/EI/CPP withholding/

He cannot treat you like a US employee.

virtualworker · Post by **virtualworker** » Wed Jun 24, 2015 6:51 pm

Okay - would I just have to pay Canadian taxes?

nelsona · Post by **nelsona** » Thu Jun 25, 2015 7:22 am

Yes since you are working in Canada. there is no US taxation involved here, unless the US firm handles things completely wrong.

NECdn · Post by **NECdn** » Thu Jun 25, 2015 11:11 am

What are the implications for the worker if the firm pays them as a US employee when they live and work in Canada? In this particular case taxes have been paid to both the US and Canadian governments for several years.

Moving2Canada · Post by **Moving2Canada** » Thu Jun 25, 2015 1:02 pm

Are there advantages as i) a US employee or ii) a CDN contractor or commuting to the US from Canada?

How does this change the obligations on the US employer reporting?

nelsona · Post by **nelsona** » Thu Jun 25, 2015 1:25 pm

Asked and answered on the other thread you hi-jacked.

Serbinski Accounting Firms

Working virtually for a US company

Working virtually for a US company

Which country do I pay taxes to?

Would it be better to commute to US?