I am a software consultant from Ottawa Ontario Canada. I am incorporated in Canada.
I have one employee which is me. I travel to the USA almost every week, therefore I am over the 183 days and have to pay USA taxes.
As a corporation in Canada, do I have to pay FICA, ie. social security, medicare?
If I do, is there a way to recover? Any forms I have to fill out.
Thanks in advance.
Canadian Corp have to pay FICA for a employee going to USA ?
Moderator: Mark T Serbinski CA CPA
No.
Neither the employer nor employee will need to pay FICA, if they fill out form CPT 56, available on CRA website.
As long as you are not going to be in this contract for more than 5 years, you are exempt from FICA.
Whether you are liable for income tax is a separate issue based, as you have concluded correctly, on days in US in any 365 day period.
Neither the employer nor employee will need to pay FICA, if they fill out form CPT 56, available on CRA website.
As long as you are not going to be in this contract for more than 5 years, you are exempt from FICA.
Whether you are liable for income tax is a separate issue based, as you have concluded correctly, on days in US in any 365 day period.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 