Working in US on TN for 10 years moving back to Canada

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robbie123
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Joined: Wed Apr 28, 2021 7:39 pm

Working in US on TN for 10 years moving back to Canada

Post by robbie123 »

I am a Canadian citizen that has been living in the US for 10 years under a TN Visa with the same employer. The employer has offered me the opportunity to permanently work from home from Canada - but as an employee not a contractor. I do not know the logistics of how to get this done while making both the CRS and IRS happy. Can the employer continue to pay me under my US bank account if I live and work from Canada? Will I be double taxed from both the CRA and IRS? When the employer withholds taxes from paychecks, what state would they withhold it under? Any help/insight would be appreciated.

Thanks,
nelsona
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Re: Working in US on TN for 10 years moving back to Canada

Post by nelsona »

He can PAY you however he wishes, however for you to be an employee, he must set up a Cdn payroll for you or go through an payroll agency.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
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robbie123
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Joined: Wed Apr 28, 2021 7:39 pm

Re: Working in US on TN for 10 years moving back to Canada

Post by robbie123 »

Does this mean that I cannot continue to be on the US payroll as I have been?
nelsona
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Re: Working in US on TN for 10 years moving back to Canada

Post by nelsona »

Correct.
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
rradb@hotmail.com
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Re: Working in US on TN for 10 years moving back to Canada

Post by rradb@hotmail.com »

What if OP was to return to US periodically for work, perhaps would remain a NR due to low number of days, would he still require payroll arrangement?
Also how does a payroll company solve this difficulty?
nelsona
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Re: Working in US on TN for 10 years moving back to Canada

Post by nelsona »

The residence takes precedence, for the purposes of payroll taxes (EI/CPP, or SS/Medicare), so for a "split" worker, the paytroll should be in home country.

For income taxes however, the number of days worked in each will determine the ratio of taxes.
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
Bubba Gums
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Joined: Tue Jul 15, 2014 7:20 am

Re: Working in US on TN for 10 years moving back to Canada

Post by Bubba Gums »

US Canada treaty on social security:

Where an employed person is covered under the laws of one of the Contracting States in respect
of work performed for an employer having a place of business in the territory of that Contracting
State and is then required by that employer to work in the territory of the other Contracting State,
the person shall be subject to the laws of only the first Contracting State in respect of that work,
as if it were performed in the territory of the first Contracting State. The preceding sentence shall
apply provided that the period of work in the territory of the other Contracting State does not
exceed 60 months.
nelsona
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Re: Working in US on TN for 10 years moving back to Canada

Post by nelsona »

That applies to transfers (or secondments). This is a new hire.
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
Bubba Gums
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Joined: Tue Jul 15, 2014 7:20 am

Re: Working in US on TN for 10 years moving back to Canada

Post by Bubba Gums »

I didn't find the section of the treaty that defined secondments or transfers. Please clarify?

This provision does not say, ... required by that employer to go to the territory of the other Contracting State in order to work. It only mentions that you are required to work while present in the other territory. The reason for being present in the other state does not appear to be specified.

It does add that it can only be for up to 60-months. However the next clause states that, "where a person is required to work in the territory of the other Contracting State for intermittent periods of short duration, each such period shall be considered a separate period of work.

The treaty also says that "a period of residence shall not be recognized as a period of coverage." Thus I am not sure ones residence has anything to do with it. In fact residence is only mentioned a few times "crew of ship/plane" and
self employment. Also a few mentions regarding benefits.
nelsona
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Re: Working in US on TN for 10 years moving back to Canada

Post by nelsona »

"Where an employee IS COVERED", implies, that he is currently covered, and then is sent out of country.

In any event, as CRA explained in their covid-19 docs, an Cdn resident working as an employee in Canada MUST have Cdn payroll taxes withheld and transmitted by the employer . Covid is the only allowed exception.
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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