Canadia PR working for US company

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.

Moderator: Mark T Serbinski CA CPA

Post Reply
craudiu
Posts: 23
Joined: Fri Sep 24, 2010 10:09 am

Canadia PR working for US company

Post by craudiu »

Hi,

I live in Canada and work for a US company as an employee with a H1B visa.
Do I have any special withholding rate through a tax treaty, or is it going to be the same regular employee withholding?
I am asking this because I saw a reply from nelsona to someone where he says that "You are not taxable in US unless you are an employee of the US firm, in which case 10% of your income would be taxable in US."
Would I qualify for this 10% withholding? Based on what article(s)?

Thanks,
Claudio
craudiu
Posts: 23
Joined: Fri Sep 24, 2010 10:09 am

Post by craudiu »

Just to make it clear, I am not a US resident, I live in Canada and commute to the US every day.
nelsona
Posts: 18365
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Could you point to the post where i made this comment, as this is not a true statement.

if you are an employee of a US company, working in US, your first obligation is to US and state, and perhaps some extra tax will be paid to canada and province, with credit given to you for US tax paid.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18365
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

... and what you are taliking about is withholding. Withholding is very different than final tax. Your withholding is merely an estimate of your fianl tax bill. You still have to file a return and apply all credits.exemptions. deductions etc to come up with your final tax.

But, pleaes, point to the post hwere you are quoting from as I cannot determine where this interpreattaion as come from.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
craudiu
Posts: 23
Joined: Fri Sep 24, 2010 10:09 am

Post by craudiu »

Thanks for the prompt response. I found this forum today and I'm learning quite a lot...

This is the post where I found that statement: http://forums.serbinski.com/viewtopic.php?t=4103
nelsona
Posts: 18365
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

In the post you mentionned, the poster said he would in US 10% of the time he was working for the US employerr.

You are in US 100% of the time that you are working, and are not telecommuting.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18365
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

... and this has no bearing on withholding rates.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Post Reply