i am Canadian, and recently got offer from US firm. the firm want me to be US employee, but i don't leave my family since this work can be done remotely.
Here are my questions.
1. Do i have to go to US as formal employee under TN visa? Can i still living in Canada to remotely work for this US firm as employee?
2. Can i live in US border town to remotely work for this firm as employee under TN Visa if I have to go to US as US employee?
a. in this situation, Can i weekly come back to Canada under TN visa, like Weekly 4 days in US border town, and 3 days at home, including weekend with my family.
b. in this situation, which US firm i need to fill to avoid US tax? 8233 is enough?
are social security taxes and medicare deductible on my Canadian returns?
Canadian remotely working for US firm
Moderator: Mark T Serbinski CA CPA
Re: Canadian remotely working for US firm
[quote="jack1702"]i am Canadian, and recently got offer from US firm. the firm want me to be US employee, but i don't leave my family since this work can be done remotely.
Here are my questions.
1. Do i have to go to US as formal employee under TN visa? Can i still living in Canada to remotely work for this US firm as employee?
2. Can i live in US border town to remotely work for this firm as employee under TN Visa if I have to go to US as US employee?
a. in this situation, Can i weekly come back to Canada under TN visa, like Weekly 3 days in US border town, and 4 days at home, including weekend with my family.
b. in this situation, which US firm i need to fill to avoid US tax? 8233 is enough?
are social security taxes and medicare deductible on my Canadian returns?[/quote]
Here are my questions.
1. Do i have to go to US as formal employee under TN visa? Can i still living in Canada to remotely work for this US firm as employee?
2. Can i live in US border town to remotely work for this firm as employee under TN Visa if I have to go to US as US employee?
a. in this situation, Can i weekly come back to Canada under TN visa, like Weekly 3 days in US border town, and 4 days at home, including weekend with my family.
b. in this situation, which US firm i need to fill to avoid US tax? 8233 is enough?
are social security taxes and medicare deductible on my Canadian returns?[/quote]
1. No, you can work from Canada if your firm wants to, but it would have to be as either a Cdn payrolled employee, or as a contractor
2. Yes, and in this way you could be a US employee.
a. yes, you would remain a Cdn resident, this fully taxable in Canada as well as US on your wages.
b. you cannot avoid US tax and SS and Medicare on US wages earned within US.
Looks like what is best for you is contractor or Cdn employee
2. Yes, and in this way you could be a US employee.
a. yes, you would remain a Cdn resident, this fully taxable in Canada as well as US on your wages.
b. you cannot avoid US tax and SS and Medicare on US wages earned within US.
Looks like what is best for you is contractor or Cdn employee
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
Canadian remotely working for US firm
nelsona, thanks for your reply.
2a: i will stay in US less than half year. as a Canadian resident, how to avoid double pay tax in US and Canada since i fill tax return only to Canada.
2a: i will stay in US less than half year. as a Canadian resident, how to avoid double pay tax in US and Canada since i fill tax return only to Canada.
It is a misconception that if you live in Canada you only file in Canada.
As I said, since these would be wages, you will be taxable on those wages, and subject to FICA. It doesn't matter how little you stay in US. You will file a 1040NR (and any state filing) to figure out the US tax, and then take credit for the tax on your Cdn return.
Only if it is contractor income (and you are in US less than 1/2 the time in any 365 day period), then you simply file an 8233 with your CLIENT and they will not withhold, nor will you have to file a 1040NR. You would simply pay Cdn income and payroll taxes.
As I said, since these would be wages, you will be taxable on those wages, and subject to FICA. It doesn't matter how little you stay in US. You will file a 1040NR (and any state filing) to figure out the US tax, and then take credit for the tax on your Cdn return.
Only if it is contractor income (and you are in US less than 1/2 the time in any 365 day period), then you simply file an 8233 with your CLIENT and they will not withhold, nor will you have to file a 1040NR. You would simply pay Cdn income and payroll taxes.
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
Canadian remotely working for US firm
nelsona, i got it, and really appreciate your help.