US citizen on US payroll, working in canada

[mhuffman]

is it feasible for a US citizen on work permit status to remain on his/her co's US payroll? If the employee will bear the burden of canada taxes, how will he/she go about ensuring that any tax witholdings/cpp payments are taken or can they just be set up to be paid by a 3rd party like ADP or others in canada and money transfered to cover it by the US co?

[Mark T Serbinski CA CPA]

Canadian law requires that anyone working in Canada be subject to Canadian withholding tax. This means that you will be primarily taxable in Canada, and will likely be eligible for an earned income exclusion and foreign tax credits in the U.S., thus eliminating your U.S. tax altogether.

You should also consider obtaining a certificate under the Totalization Agreement, since currently, you are being double taxed on social security contributions.