US citizen working remotely for US company from Canada

Msjulieanniam · Post by **Msjulieanniam** » Tue Aug 20, 2013 4:44 pm

I am a US citizen, living in Canada. My husband and I are here legally on a temporary work visa. I am looking to gain employment -remotely - for a US company. Immigration Canada has confirmed that it is legal from an immigration standpoint (reference the Foreign Workers Guide section 5.1) however, what is the requirement/laws/policies on receiving compensation?

I can provide a US address, Bank Account, etc. but I spend most of my time in Canada.

nelsona · Post by **nelsona** » Tue Aug 20, 2013 4:52 pm

If you are living in Canada, and are working in Canada, anbd they choose to make you an employee, then the firm should be paying you as a Cdn employee, regardless if you are telecommuting or not. This would subject you/them to Cdn payroll taxes CPP/EI, etc.

Otherwise, they should simply hire you as a contractor, and pay you by check.

Where the money is deposited means absolutely nothing.

You should not spoof an address where you do not live.

Just as before, all your income is subject to both US (because of your citizenship) and Cdn tax, with US creiting you with the Cdn tax you will pay.

nelsona · Post by **nelsona** » Tue Aug 20, 2013 5:01 pm

So, in the context of the Foreign Worker manual, being a Cdn employee would not work (since in all likelihood the US firm would need to set up a Cdn payroll firm -- which would make you in effect an employee of a Cdn firim, which would violate your status), and thus you should insist on being a contractor (there is no benefit to being a US employee of a US firm while living in Canada), which should bost your take home.

This is how most Cdns residents working for a US employer are hired and remunerated, so there is no disadvantage for you under your limited immigration status.