Job in Canada and contracts in US

rdd123 · Post by **rdd123** » Wed May 13, 2009 12:18 pm

I am a US citizen.
I will be taking employment in Canada using a work permit.
I will also continue to do work in the US.
Based on what I have read, I should structure the work in the US as a contractor, correct?
Is there any other information or precautions that I need?
Thank you

nelsona · Post by **nelsona** » Wed May 13, 2009 2:25 pm

I think it is a good practice to be a contractor in the country you don't live in.

rdd123 · Post by **rdd123** » Wed May 13, 2009 3:11 pm

And to be an employee for a US company and a Canadian company (in different lines of business and both OK with it), would require that the US company have Canadian payroll services or could it be US based payroll for that employment (perhaps using a US address that I have)?
If contracting still seems best, should invoices be made in US funds but with the Canadian address (residence) or should a US address (part-time residence) be used?

nelsona · Post by **nelsona** » Wed May 13, 2009 4:37 pm

The adrss or bank they send money to doesn't matter. Its the withholding that matters.

rdd123 · Post by **rdd123** » Thu May 14, 2009 7:50 pm

So, if each company withheld in its country, would that work (well)?

Separately, are there any tax implications of exchanging between currencies?

nelsona · Post by **nelsona** » Fri May 15, 2009 5:11 am

The companies would need to withhold based on where YOU were working, not where THEY were located. That's why contracting for compnies which are located abroad (with respect to where you live) makes mosy sense, since there is no withholding.

Currency 'ecnages' do not incur tax implications. Holding on to foreign currency and THEN exchanging it, after there has been a sufficient rate change does.

rdd123 · Post by **rdd123** » Sun May 17, 2009 5:13 pm

Thank you for the information.
Is any of this impacted if the Canadian work permit is specific to a employer?

nelsona · Post by **nelsona** » Mon May 18, 2009 5:02 am

Nom other than the need for a work permit for each Cdn employer you might have.

rdd123 · Post by **rdd123** » Tue May 19, 2009 7:54 am

OK, just to summarize:
If I have an employer specific work permit in Canada and I reside in Canada, then I can work for that employer as well as a contractor for US firm(s) without the US firms having to deal with me differently than they have when I resided in the US.
Is this correct?
Thank you.

nelsona · Post by **nelsona** » Tue May 19, 2009 9:15 am

Thta is really an immigration question. Generally, yes, this is true. However, if your being in canada presents an 'advantage' to you or the contracting firm, it may be required to get govt authorization. after all, you are working IN canada.