I am about to get a contract which requires me to be paid as an employee. It is a contract position and am filling a W-7 to obtain a ITIN. This will allow me to file a form 8233 and (hopefully) be exempt from witholdings.
This is a part-time contract:
It will be done remotely (in Toronto, Canada)
I will rarely be in the US (aggregate # of days well under 183)
I have no capital or fixed address in the US and absolutely nothing else with a US address
I have obtained a TN visa for the odd time I would have to go to clients site
What Treaty Article (US Canada Income Tax Provision) shall I reference to claim withholding exemption? I have thought 25(1) Non-discrimenation and there is also 15(2)(b)
Anyone else been through this process and tell me what there experience with this has been?
Treaty Position for Obtaining an ITIN (Form W-7, 8233, 8840)
Moderator: Mark T Serbinski CA CPA
So, you can't be on the one hand an employee, and on the other a contractor.
if you are an employee, and physically in the US, it will need to be under a work status (that is why you have the TN, and don't simply enter on B2), and that will make you eligible for an SSN. So you will not be eligible for an ITIN. But even if you were, ITINs are only requested with your 8233, not before.
So, regardless of whether you are a contractor or not, with your TN, go to an SSA office and get your SSN. This will be much better/easier than an ITIN.
IF you will be paid by a W-2, which I suspect, so 8233 won't apply, unless the remuneration will be less that $10K for the calendar year (even then withholding would apply and this generally would only be applied for at tax time. You would still have social security withheld.
If you really want to be exempt, you need to have them actually treat you like a contractor, not an employee. Which means paid by 1099. Then you can fill out 8233
But, for future reference, should you ever be a contractor, the Articles are Article VII(1) along with Article V(9), proving no fixed base.
For employees, like you appear to be, the article is XV(2): under 10K and less than 183 days.
So you need to ask them if you will be on payroll (W-2) or will they simply cut you a check periodically (1099).
if you are an employee, and physically in the US, it will need to be under a work status (that is why you have the TN, and don't simply enter on B2), and that will make you eligible for an SSN. So you will not be eligible for an ITIN. But even if you were, ITINs are only requested with your 8233, not before.
So, regardless of whether you are a contractor or not, with your TN, go to an SSA office and get your SSN. This will be much better/easier than an ITIN.
IF you will be paid by a W-2, which I suspect, so 8233 won't apply, unless the remuneration will be less that $10K for the calendar year (even then withholding would apply and this generally would only be applied for at tax time. You would still have social security withheld.
If you really want to be exempt, you need to have them actually treat you like a contractor, not an employee. Which means paid by 1099. Then you can fill out 8233
But, for future reference, should you ever be a contractor, the Articles are Article VII(1) along with Article V(9), proving no fixed base.
For employees, like you appear to be, the article is XV(2): under 10K and less than 183 days.
So you need to ask them if you will be on payroll (W-2) or will they simply cut you a check periodically (1099).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 