W2 employee living in Canada: basic questions

[mancora]

Hi there,

I am very happy that I have found this forum. I hope someone has some thoughts on my situation.

I am a Canadian permanent resident. I have no ties to the US nor did I spend any days in the US the last few years.

I got W2 contract on the table, the work will be performed 100% remotely.

The US company will withhold income tax and social securities.

My questions are:

A) Do I have to file a 1040NR?
B) Is there another document I have to file?
C) Can I offset 100% of the payed taxes on the Canadian side through FTC?
D) is there anything else I should be aware of?

I appreciate any answers!

Thank you!

[nelsona]

They cannot pay you as a W-2, sicne you live and work in canada. They MUST either make you a contractor, or on a Cdn payrioll.

[mancora]

Thank you very much for your comment. That is a very interesting fact.

In one email my employer talks about contractor onboarding and a minute later I have a W2 contract with a hourly rate on the table.

So you are saying that this does not work at all?

Thank you sooo much!!

[mancora]

Hi again,

I did a lot of research in this forum and I saw people who worked for an US based company from Canada (100% remote).

I am very confused now. What is the exact reason why this is not working? I found as reason: avoiding to pay Canadian payroll taxes

Appreciate your feedback

[nelsona]

Yes, 1000's of Cdns work for US-based firms. They either work as a contractor, corp-to-corp, or are on a Cdn payroll.

[bluesky]

My partner is in this position. She is paid by a payroll company in Canada (Manpower).

[pals]

nelsona wrote:
> Yes, 1000's of Cdns work for US-based firms. They either work as a
> contractor, corp-to-corp, or are on a Cdn payroll.

If one has to work as contractor, corp-to-corp or Cdn payroll , does he /she requires TN Visa ?

[nelsona]

No, unless there is occasional travel to the US firm.

[ND]

look into setting up with an Employer of Record (also known as a PEO – Professional Employer Service) in Canada

[nelsona]

PEO is the way to go, if you do not wish to be a contractor.