U.S. citizen and Canadian PR working remotely from Canada for U.S. employer (on W-2)

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llll
Posts: 10
Joined: Sun Dec 27, 2020 7:37 pm

U.S. citizen and Canadian PR working remotely from Canada for U.S. employer (on W-2)

Post by llll »

I am a U.S. citizen and a Canadian permanent resident. Is it OK for me to work remotely from Canada for a U.S. employer? The U.S. employer will be paying me as a regular U.S. employee and withholding taxes for IRS, and will issue W-2. Working as a contractor etc. is not an option. My U.S. employer running a Canadian payroll for me is not an option.

1. From IRS perspective: Is it legal for me to work for U.S. employer remotely from Canada while getting paid on U.S. payroll as a regular U.S. employee?
2. From CRA perspective: Is it legal for me to work for U.S. employer remotely from Canada while getting paid on U.S. payroll as a regular U.S. employee?
3. How do I go about filing my taxes with IRS and CRA so as not to have to pay double taxes? Please note that I do not have ability to ask my employer to hire me as a contractor instead.
4. Can CRA force me to pay fines on behalf of my U.S. employer if they think my employer should have been running a Canadian payroll and issuing T4 etc. since I have been working remotely from Canada?
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