US citizen lving in canada working in america

cruedog85 · Post by **cruedog85** » Wed Jun 07, 2006 11:31 am

hi all !! i am new here and i hope you can help! im getting married to a canadian this month and i want to move in with her asap. my job is the type i can work from home pretty much anywhere in the world. my job (which is based in boston and has no other offices) wants to know if there are any issues with me doing this. personally i dont see any, but has anyone done this and can advise?

thanks
mike

nelsona · Post by **nelsona** » Wed Jun 07, 2006 12:44 pm

If you are en employeee, living in canada, your firm MUST pay you asa Cdn employeee, withholding Cdn income and payroll taxes.

This may set up a Cdn tax reporting liability that the firm may not want.

Many opt to simply be contractors for the US firm, handling there own taxes, etc. This may also be advantageous, since the usual fringe benefits associated with being an employee of a US comapny (401(k), health plan) are of little value to a Cdn resident.

peon · Post by **peon** » Wed Jun 21, 2006 4:43 pm

This is very interesting! I wish I had this kind of job.

Anyway, one thing though, cruedog85 is a U.S. Citizen, so 401k and health plan may still be good to him. right?

nelsona · Post by **nelsona** » Wed Jun 21, 2006 10:46 pm

Not really. The 401(k) contributions will be fully taxable in Canada, and the withdrawals will be fully taxable in US, so, no, 401(k) for a US citizen living in Canada is of little benefit.

Also for health plan, othr than dental, is of little vale: get the casjh as a contractor instead.