Dual citizen considering Canadian opportunity - Help needed

[andre1963]

I realize that this is a question that might best be answered by a cross-border tax account but I thought I'd try to get some insight first from folks who may be in the same situation.

I am a dual US/CDN citizen who has been living in the US for the past 19 years. A recent career opportunity came up which would allow me to telecommute to a position located in Canada. I would physically be working at the Canadian office for probably less than 75 days/year. The rest of the work would take place from a home office in the US. The position is in the six figures.

Should I even consider this opportunity given the tax implications? What are the tax implications? Would I pay US/CDN/Ontario and PA taxes? I've never seen a situation like mine crop up as I clealry would not be residing in Canada, though I would be working for a fully fledged Canadian organization (not a US company). Does working as a consultant vs an employee have any bearing on tax burden?

If this is a major taxation headache, this opportunity will be null&void before we even get to the next "level" of discussion. Any clear answers with respect to taxation owed (and where) would be greatly appreciated. Thanks!

[nelsona]

If you work as a contractor, there is absolutely no chance of you being taxed in canada. they cut you a check and that is it. Sometimes there is 15% tax withheld, but you would get this back at year-end.

If you work as an employee, you need to make sure that you are put on a US payroll, since you will be living and working in PA. At worst you may have to pay Cd/ON tax on your work done in Canada -- which would be credited towards your IRS tax (but not PA tax).

[andre1963]

Thanks Nelson. Your response is very much appreciated!