Canadian permanent resident working remotely for US company

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adler
Posts: 2
Joined: Wed Jul 29, 2020 9:45 am

Canadian permanent resident working remotely for US company

Post by adler » Wed Jul 29, 2020 9:47 am

Hi,
I'm a permanent resident of Canada and I have been offered a remote job (as an employee) from a US company. I'm inclined to take the offer as it helps me develop my career although the money is not the highest pay.
I have questions and I really appreciate any comments:
1) Do I need to pay US taxes while working remotely from Canada?
2) I don't think they will give me a T4 at the end of the tax year since I'm the only employee working from Canada for them. How should i file my taxes at the end of the year?
3) Previously they were offering me to be Contractor for them instead of the employee, but they have switched their mind now. I know being a contractor would make a lot of stuff easier (as I pay myself at the end), but does CRA cares about having only one customer (the US company) and think of me as the employee of them?

Thanks in advance for your time

nelsona
Posts: 16510
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian permanent resident working remotely for US company

Post by nelsona » Wed Jul 29, 2020 6:38 pm

1. You should not have tp pay US taxes. However, unless you are working a sa contractor, you MUST be on a CDn payroll with this firm.
2. If you are an employee they MUST issue you a T4, as they MUST pay you as a Cdn employee, with CDn taxes, CPP, EI, etc., Otherwise you MUST be a contractor.
3. The above 2 answers may change their mind and make you a contractor. You would then have to meet the CRA requirements of contractor, but you cannot be a US employee if you live and work exclusively in Canada.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

adler
Posts: 2
Joined: Wed Jul 29, 2020 9:45 am

Re: Canadian permanent resident working remotely for US company

Post by adler » Thu Jul 30, 2020 9:48 am

Thanks for your prompt reply, it clarifies a lot of things for me.
So here is the summary that I have concluded: I cannot be a US employee at all (as I don't live/work) there, I can be a Canadian employee for the US company but then they have to issue me T4 and give me benefits CPP, EI, etc. So, the easiest way that this can work is me working as a contractor for them. Is this correct?

My question now is regarding complications that might happen regarding CRA and their requirements for contractors. Any idea (or link, I couldn't find online) of what are the requirements for contractors? Do I need to establish incorporation then and pay myself from the corporate income?

Thanks for your help

nelsona
Posts: 16510
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian permanent resident working remotely for US company

Post by nelsona » Thu Jul 30, 2020 10:28 am

See:
https://www.canada.ca/en/revenue-agency ... _mpld_wrkr

Incorporating may or may not be the best solution for you.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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