Unemployment tax for US citizen,CDN resident/workr

[CARTEG]

If a U.S. firm employs a U.S. citizen who lives in Canada and works from his home office in Canada, does the U.S. corporation pay their state's unemployment tax for this individual?? What about federal unemployment tax? If this individual becomes unemployed, does he apply for benefits through the U.S. or Canada?

[nelsona]

Your residence and work location in Canada, regardless of your US citizenship, means that, as an employee, you and your firm should be paying/withholding tax as a Cdn employee (Fed/Prov tax, EI, CPP). The only way this would not be the case is if you are one temporary assignment in Canada, and then CPP can be exempted and you and your firm then pay SS. UI is not part of this arrangement.

Thus you will collect EI from Canada, even if you should move to US after being laid-off.





<i>nelsona non grata</i>