Hello,
I'm a Canadian citizen currently working on a TN in Chicago for a US based consulting company.
My wife will be relocating to Canada for work. I'd like to stay with my company and telecommute through vpn, with regular visits to the main office in Chicago.
My company currently does not have an office in Canada nor any desire to set one up as it might complicate an existing strategic relationship. Setting up a Canadian Payroll system is also a non starter.
All my work is solely for US based clietns, I would not solicit any business from Canadian clients, nor would my company gain any benefit from my being in Canada, and I would be living in small town a fair distance from any major center.
What options do I have to convince my company to allow me to telecommute from Canada?
Is it possible to essentially remain an employee of the company and just work from Canada - they would pay me in USD to an American account withhold US Taxes and I would file both Canadian and US tax returns doing my own CPP and EI Withholdings?
I appreciate any help!
Z
Telecommuting from Canada for a US Based company - Help!
Moderator: Mark T Serbinski CA CPA
Thanks for the reply
If I go the contractor route I assume that I would need to get a GST number and set myself up as a sole proprietorship in Canada.
Is there a way to do this such that there is minimal disruption or effort on the US Company's end? That is can the contract be structured in such a way that I would still be classified as TN, they could still withhold US taxes, pay me in USD, and I would do the CDN tax witholding on my end?
Would I need to invoice the US Company, or could the pay structure be spelled out in the initial contract?
I'm hoping there might be a way of doing this with minimal disruption to the US Companys way of operating.
Thanks!
If I go the contractor route I assume that I would need to get a GST number and set myself up as a sole proprietorship in Canada.
Is there a way to do this such that there is minimal disruption or effort on the US Company's end? That is can the contract be structured in such a way that I would still be classified as TN, they could still withhold US taxes, pay me in USD, and I would do the CDN tax witholding on my end?
Would I need to invoice the US Company, or could the pay structure be spelled out in the initial contract?
I'm hoping there might be a way of doing this with minimal disruption to the US Companys way of operating.
Thanks!
"Is there a way to do this such that there is minimal disruption or effort on the US Company's end? That is can the contract be structured in such a way that I would still be classified as TN, they could still withhold US taxes, pay me in USD, and I would do the CDN tax witholding on my end?"
Yes. By living and working in the US.
By contracting, your are not impacting the company at all. Your firm pays invoices all the time. This will not disrupt anything.
Make sure you ask for higher income to make up for the loss of benefits (US benefits are of little value in canada anyways, so you should pocket what they are saving).
Yes. By living and working in the US.
By contracting, your are not impacting the company at all. Your firm pays invoices all the time. This will not disrupt anything.
Make sure you ask for higher income to make up for the loss of benefits (US benefits are of little value in canada anyways, so you should pocket what they are saving).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Thanks again nelsona, you've been a big help!
follow up question:
If I follow what you are saying:
If I maintain a US residence, and live there enough to maintian US Residency, would I be able to work remotely from Canada on a regular basis and have not have the US Company exposed to any Canadian corporate Tax risk?
My companies largest concern is havign to track when and where I've been to determine how the revenue I produce is taxed.
I can see how being a contractor is the likely solution - but is there then any issue with crossing the border for meetings or doing actual work in the office? Would I just continually go down on a B1 Visa?
Thanks
follow up question:
If I follow what you are saying:
If I maintain a US residence, and live there enough to maintian US Residency, would I be able to work remotely from Canada on a regular basis and have not have the US Company exposed to any Canadian corporate Tax risk?
My companies largest concern is havign to track when and where I've been to determine how the revenue I produce is taxed.
I can see how being a contractor is the likely solution - but is there then any issue with crossing the border for meetings or doing actual work in the office? Would I just continually go down on a B1 Visa?
Thanks
It is unlikely that you would remain in US enough time, and you would still need to pay Cdn tax on the portion you worked in canada, but you could try.
You would either enter on B1, or, if not eligible for B1, you would enter on TN, with your client as your sponsor.
You would either enter on B1, or, if not eligible for B1, you would enter on TN, with your client as your sponsor.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
thanks again nelsona!
Hopefully you can help me out again:
I'm in a bit of a rush to get this sorted out as I have a job offer from a different firm in Canada (not in the same town as my wife will be working) that I need give an answer to soon.
My boss has expressed interest in the idea of treating me as a contractor who lives in Canada, and if possible would sponsor a TN Visa so that I can visit the office as needed. As I understand it I wouldn't qualify as an indpendent contractor as I would be using all their equipment etc.
The main interest to the company is that they remain compliant with all laws (tax and immigration etc) and that this is as painless as possible for them. They've never done this sort of thing before which means I get to do all the initial reserach to convince them that this is painless and riskless for them.
How exactly would everything be handled and set up (I'm guessing someone at Serbinski can help)?
Would the company basically pay me a set amount (in USD, as detailed in the contractual agreement) do no tax withholding on their end; in effect they'd give all the tax "filing risk" on to me.
Would they do nothing but cut a cheque for a set amount every so often?and not file anything? is there any paperwork they'd need to do on for paying me? any forms to file with the IRS?
Are there any TN/immigration issues? Is there anything the company would need to be aware of to maintian compliance with the law? DO they need to "post" the job description before they sole source to me?
From what I've read as I would be a full time canadian resident I wouldn't need to file US tax returns on the work I do for the company as long it amounts to less than $10,000 over the course of the year - is this correct?
Would I need to track my hours in the US?
I would file Canadian taxes as a sole proprieter, (having write off's for home office etc.) and would do my own withholdings for CPP EI?
I'd ave t set myself up as a sole proprietor/business in Canada - is this overly complicated (would be Alberta)?
apologies for typos and grammer but I'm in a bit of a rush!
Thansk again for any help and insight you can offer!
Z
Hopefully you can help me out again:
I'm in a bit of a rush to get this sorted out as I have a job offer from a different firm in Canada (not in the same town as my wife will be working) that I need give an answer to soon.
My boss has expressed interest in the idea of treating me as a contractor who lives in Canada, and if possible would sponsor a TN Visa so that I can visit the office as needed. As I understand it I wouldn't qualify as an indpendent contractor as I would be using all their equipment etc.
The main interest to the company is that they remain compliant with all laws (tax and immigration etc) and that this is as painless as possible for them. They've never done this sort of thing before which means I get to do all the initial reserach to convince them that this is painless and riskless for them.
How exactly would everything be handled and set up (I'm guessing someone at Serbinski can help)?
Would the company basically pay me a set amount (in USD, as detailed in the contractual agreement) do no tax withholding on their end; in effect they'd give all the tax "filing risk" on to me.
Would they do nothing but cut a cheque for a set amount every so often?and not file anything? is there any paperwork they'd need to do on for paying me? any forms to file with the IRS?
Are there any TN/immigration issues? Is there anything the company would need to be aware of to maintian compliance with the law? DO they need to "post" the job description before they sole source to me?
From what I've read as I would be a full time canadian resident I wouldn't need to file US tax returns on the work I do for the company as long it amounts to less than $10,000 over the course of the year - is this correct?
Would I need to track my hours in the US?
I would file Canadian taxes as a sole proprieter, (having write off's for home office etc.) and would do my own withholdings for CPP EI?
I'd ave t set myself up as a sole proprietor/business in Canada - is this overly complicated (would be Alberta)?
apologies for typos and grammer but I'm in a bit of a rush!
Thansk again for any help and insight you can offer!
Z
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Hi zakarin,
I seem to be in pretty well the exact same situation.
I have my own corporation in BC, and have an opportunity to work for US Corp, while living in Canada. Occasional business trips to the US.
I am interested what you ended up doing.
I'd be happy to exchange notes on Corp setup etc if you still need help.
I seem to be in pretty well the exact same situation.
I have my own corporation in BC, and have an opportunity to work for US Corp, while living in Canada. Occasional business trips to the US.
I am interested what you ended up doing.
I'd be happy to exchange notes on Corp setup etc if you still need help.
-
blairgoates
- Posts: 48
- Joined: Thu Apr 14, 2011 12:35 pm
Same Situation
Hi, I am in the exact same situation you described. I am just paid by the US company on the regular US payroll like when I was living there. I file both a US and and Cdn tax return. On my Cdn return I claim all the taxes I paid to the US as a foreign tax credit. I have been doing this for about 6 years now.
Roth IRA contribution in dual status year
Is there anything wrong with contributing to a Roth while resident in US (with enough earned income to be elgible to contribute), moving to Canada and then filing dual status for that year?
I assume this would be OK since the contribution is made with earned income taxed by US.
I assume this would be OK since the contribution is made with earned income taxed by US.