Canadian work in USA but Paid in Canada by Cdn Employer

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umcampb2
Posts: 2
Joined: Tue Nov 09, 2010 10:31 pm

Canadian work in USA but Paid in Canada by Cdn Employer

Post by umcampb2 »

So i've read many posts and haven't found my particular instance.

I'm a Canadian TN Visa who lives in Austin, TX. I've left behind a Condo that's been rented since I left. I continue to be paid by my Canadian Employer in Canada with Cdn Withholding Taxes.

I would suspect that my Tax obligation is to the USA not Canada. This would make sense but i'm wondering if this is indeed the case. My Canadian employer is telling me i'm still a resident of Canada for 2009 however I only spent 25 days in Canada.

Is my employer confused, am I confused?

Any help would be appreciated.
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

A job with a Cdn employer does NOT make you a Cdn resident. Nor is your employer in a position to tell you where you live.

However, sicne you do live in US and work from there, to be an employee you must be paid as a US worker (IRS withholding and FICA). The same would apply if working for a US employer while living in Kamloops.

They must either set up a US payroll for you, or make you a contractor (in which case they would withhold Non-resident tax, which you would get back).

You live and work in US, and must pay tax there first.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Another aspect that you MUST clarify is your leagl ability to work in US. You either need US work authorization, or a work visa, or prove conclusively that your foreign employer is not having ANY US business dealings, or benefiting in any way from your presence in US. If none of these conditions are met, you can be considered to be working illegally.

But even income from illegal wrk needs to be reported to IRS, or you are compounding your woes.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
umcampb2
Posts: 2
Joined: Tue Nov 09, 2010 10:31 pm

Post by umcampb2 »

In this situation, I have a TN Visa thus I believe I have a legal ability to work in the US.

The main issue is that I've been down in Austin, TX for quite some time now, but my employer continues to pay me like I'm a Resident of Alberta. And believes that I'm still a resident of Alberta because I have a condo that is rented out in Calgary. Is this correct in your opinion?
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Your Cdn employer got you a TN? Then he realizes that you are working IN the the US.

Your TN has to be with each employer. You cannot moonlight on TN without getting additional TNs.

Your employer has NO BUSINESS determining your residency status. You are non-resident performing work on US soil. Your rented out house is not your residence. Your home in TX is your residence AND place of work.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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