Cross-Border Remote Work

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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canycuk
Posts: 5
Joined: Mon Jan 13, 2020 12:40 pm

Cross-Border Remote Work

Post by canycuk »

Hi everyone - this is my first post, so apologies if this isn't clear or if I'm asking something that's already been well covered.

I'm a US citizen working as a software engineer for a multinational company; I'm on a work visa to work in a job in their Toronto office. I'm hoping to become a permanent resident in a few months after I gain more points through my Canadian work experience.

However, there is a team back in the company HQ (in Silicon Valley) that wants me to join them. I've told them I don't want to move there but they're still interested in a remote arrangement. What I'm wondering is: would it be possible, once I'm a permanent resident, to be employed by the US entity for this company but continue to live in Canada? I realize there might be personal tax implications and I'm willing to deal with those; my main concern is, would that even be possible?

One perk to this is that I would potentially be getting paid USD and on a pay scale that's benchmarked to Silicon Valley rather than Canada, so it would be helpful financially (likely enough to off-set any tax problems incurred). Does anyone have any experience with a set up like this or can comment on its feasibility? Thanks very much.
canycuk
Posts: 5
Joined: Mon Jan 13, 2020 12:40 pm

Re: Cross-Border Remote Work

Post by canycuk »

Anyone?
nelsona
Posts: 18358
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Cross-Border Remote Work

Post by nelsona »

A a US citizen, you can work anywhere anytime in US. Once you are a PR of Canada, you can live in Canada and do whatever you want, including working remotely from Canada, or even working physically in US, or not working at all.

There is no problem with this plan, once your get PR status.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
llll
Posts: 12
Joined: Sun Dec 27, 2020 7:37 pm

Re: Cross-Border Remote Work

Post by llll »

nelsona wrote:
> A a US citizen, you can work anywhere anytime in US. Once you are a PR of
> Canada, you can live in Canada and do whatever you want, including working
> remotely from Canada, or even working physically in US, or not working at
> all.
>
> There is no problem with this plan, once your get PR status.
I am in the same situation. Is it OK for a U.S. citizen and a Canadian permanent resident to work remotely from Canada for a U.S. employer? The U.S. employer will be paying me as a regular U.S. employee and withholding taxes for IRS, and will issue W-2.

1. From IRS perspective: Is it legal for me to work for U.S. employer remotely from Canada while getting paid on U.S. payroll as a regular U.S. employee?
2. From CRA perspective: Is it legal for me to work for U.S. employer remotely from Canada while getting paid on U.S. payroll as a regular U.S. employee?
3. How do I go about filing my taxes with IRS and CRA so as not to have to pay double taxes? Please note that I do not have ability to ask my employer to hire me as a contractor instead.
ND
Posts: 291
Joined: Thu Feb 21, 2013 5:28 pm

Re: Cross-Border Remote Work

Post by ND »

Also Contact Marc Pavlopoulos marc@syndesus.com to explore PEO
Syndesus is an Employer of Record (also known as a PEO – Professional Employer Service) in Canada who legally employs Canadians in Canada to work for US companies.

Syndesus collects and remits all Canadian employer and employee taxes to the CRA. You would get an offer letter from Syndesus which exactly mirrors what you have in the US. Which means you get a T4, and that you are eligible for provincial healthcare (because you are now a Canadian taxpayer). The US employer pays the monthly fee for its service. There is no cost to the Canadian worker.
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