Can a TD holder (US resident) work for a Canadian company
Moderator: Mark T Serbinski CA CPA
Can a TD holder (US resident) work for a Canadian company
I'm working in the US under TN, my wife quit her job and moved to the US with me under TD, we don't have any ties with Canada. But my wife's company (in Canada) wants her to continue working for them while she is in the US, is this possible and legal? Of course we don't want to file CAnadian tax return, what's the consequence regarding filing the US tax return? Thanks.
The tax issues and the immigration issues are separate.
She lives in US, and woiuld be working in US, so should either be paid asa contractor (simply cut a check), or be put on a US payroll (not Cdn).
Thwere would be no Cdn taxation.
However, the larger issue is working in US without authorization. There are VERY narrow situations where one can work for a foreign company while not violating there status: for a start, the comapny being worked for could not have ANY US ties, and the worker could not be using their physical location in the US as an advantage for the firm (ie. doing research/interviews/ that could only be done physically while in US). Rememebr that she is on a TD, not a business visitor visa, so she cannot act like someone living in canada sent down to US to work temporarily.
Telecommuting is still fairly new, and as such balck letter law on this is not clear, so a chat with an immig lawyer would be in order.
She lives in US, and woiuld be working in US, so should either be paid asa contractor (simply cut a check), or be put on a US payroll (not Cdn).
Thwere would be no Cdn taxation.
However, the larger issue is working in US without authorization. There are VERY narrow situations where one can work for a foreign company while not violating there status: for a start, the comapny being worked for could not have ANY US ties, and the worker could not be using their physical location in the US as an advantage for the firm (ie. doing research/interviews/ that could only be done physically while in US). Rememebr that she is on a TD, not a business visitor visa, so she cannot act like someone living in canada sent down to US to work temporarily.
Telecommuting is still fairly new, and as such balck letter law on this is not clear, so a chat with an immig lawyer would be in order.
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