Canadian PR working in US remotely for Canadian corporation

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czhe
Posts: 3
Joined: Wed Jul 07, 2021 8:22 pm

Canadian PR working in US remotely for Canadian corporation

Post by czhe »

Hi,

I'm planning to move to the US for a new job on an L1B visa with my spouse on L2/EAD. She wishes to continue working for her Canadian employer remotely while living in the US with me. I have not been able to find much information regarding how taxes will work in this case. My impression (which could very well be wrong) is that she does not owe any income taxes to CRA (as she is no longer a resident) and must file US tax return to the IRS. Is this true?

Also, what would her Canadian employer need to do in this case? Do they need to file some paperwork in order to be able to pay someone living in the US? Would they have to pay her in USD?

Thanks.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian PR working in US remotely for Canadian corporation

Post by nelsona »

They *should* set up a US payroll for her, once she gets EAD.

She shoudl not be taxed in Canada, but will need to report her world income to IRS, even if she did report in canada.

Currency of payment, or where the money ends up means nothing.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
czhe
Posts: 3
Joined: Wed Jul 07, 2021 8:22 pm

Re: Canadian PR working in US remotely for Canadian corporation

Post by czhe »

Thank you, that helps a lot.

I did some searching but could not find much on a Canadian company setting up payroll in the US, only the other way around. Is this a complicated process? I have some doubts that her employer would want to commit to something like this. Does my spouse/employer have any other alternatives?

Thanks.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian PR working in US remotely for Canadian corporation

Post by nelsona »

She could be a contractor.
It'll come down to how much they want to keep her.
With an EAD she can work anywhere in US. It'll be a competition to keep her.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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