Remote working for a US company?

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Remote working for a US company?

Post by Mecharossilla »

I have citizenship in both the US and Canada.
I currently live the US and work for a medium US company with no foreign offices.
I am hoping to relocate to Canada (Nova Scotia or Ontario) and work remotely for my current employer.

My company has asked me to look into the legal and tax repercussions of working remotely from Canada.
From what I have read, it seems that because I am doing the work on Canadian soil, I will be required to file taxes and pay full taxes to the CRS without being able to use the foreign tax credit. I also have to file taxes with the IRS and will get (some/all?) the taxes refunded from the US?

Is there a way to skip paying the US in the first place? What about Medicare and social security withholdings? Do they still get withheld?

Looking for whatever guidance you may be able to provide, thank you all for your time in reading this far. :)
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Re: Remote working for a US company?

Post by nelsona »

The employer is supposed to set up a Cdn payroll for you -- or pay you asa independent contractor. It is against regulations for a foreign employer to have a Cdn resident working in Canada, and not be withholding and remitting Cdn taxes and CPP/EI.

That way there is no IRS involvement and no worries about foreign tax credit.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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