Re-entry permit vs. commuter green card tax implications

monana · Post by **monana** » Sat Oct 10, 2015 5:08 pm

Thanks for your reply.
I applied for a re-entry permit and got "permission" to be away from the US for 2 years. I am also maintaining significant ties and a residence in the US. According to USCIS as long as I don't show intent to renounce my green card and return in due time while paying my taxes I should be fine (and we do fully intend to return to the US).

I thought IE was not mandatory (if I work as independent contractor)?
Maybe I should call CRA again.
Now I am more just worried about what to do with the wages I have already received this year, and the taxes already paid to the US...
I will probably also contact an accountant that deals with international taxes directly.
This is such a mess! :(

nelsona · Post by **nelsona** » Sat Oct 10, 2015 9:19 pm

You said you were an employee of the US company. Now you say you are an independent contractor? Which is it?

monana · Post by **monana** » Sat Oct 10, 2015 9:24 pm

I am an employee. But if I switch to independent contractor, I wouldn't need to pay EI, correct?
The other two solutions would be to put on a canadian payroll (but how? They are not in canada nor do they conduct business here. Would this cost them a lot?)
Or, to drive 3-4times a week to US border and perform my work from there? Sich as a coffee shop? I am about 45min away from the border....

nelsona · Post by **nelsona** » Sat Oct 10, 2015 9:26 pm

Exactly. Another reason to become contractor. Yo uwould have to pay both ends of CPP however, as en employee the form pays 1/2. Whuch neither of you are currently paying, which is the problem.

monana · Post by **monana** » Sat Oct 10, 2015 9:30 pm

This is probably impossible, but what if I stay as employee and cover the EI and CPP myself? (including company's contributions), do they still need a canadian payroll?

Or again, just drive across the canadian border for work....

nelsona · Post by **nelsona** » Sat Oct 10, 2015 9:55 pm

You aren't allowed to be covered by CPP for the same employee work, and if your form isn't paying EI, you aren't eligible to pay for it either.

You are making it too easy on firm and too difficult on yourself. Become a contractor.

monana · Post by **monana** » Sat Oct 10, 2015 9:58 pm

I dont think my line of work qualifies as a contractor. The US regulations are very strict on the definition.
what are the costs/legalities associated with setting up a canadian payroll?

nelsona · Post by **nelsona** » Sat Oct 10, 2015 10:27 pm

I think you are mistaken of the definition of contractor. Canada has stiffer rules, not US. And if you can't be a contractor, all the more reason whay you need to be set up as Cdn employee.

As for payroll. Have your firm find out. They want to keep you.

nelsona · Post by **nelsona** » Sat Oct 10, 2015 10:27 pm

We're done on this thread.
All the best.