I have a cross-border question. I’m Canadian living in California US. Now I’ve got Green Card and have both US SSN and Canadian SIN. My old Company in Toronto Canada wants to hire me as a full time software developer (will work online). I do understand my employer is supposed to pay both Canadian and US taxes. Is it possible to find detailed information which taxes should be paid by the Canadian company? Any links to the appropriate forms will be highly appreciated.
Thanks.
Taxation: Canadian US Resident working fulltime for Canadian
Moderator: Mark T Serbinski CA CPA
Since you will not be working in canada, the Cdn firm MUST pay you as either a US employee, or as a contrator, neither of which would be r=taxable in canada. They cannot hire you as a Cdn employee.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
I see no problem with working for Canadian Company while residing in USA.
For me it looks like every day via Internet I go to my Computer located in Toronto Office and work 8 hours for Canadian Company and Canadian Dollars are being paid on my Canadian Bank Account. The only issue here, some amount of money should be transferred to IRS according with taxation agreement by USA-Canada Treaties, right?
For me it looks like every day via Internet I go to my Computer located in Toronto Office and work 8 hours for Canadian Company and Canadian Dollars are being paid on my Canadian Bank Account. The only issue here, some amount of money should be transferred to IRS according with taxation agreement by USA-Canada Treaties, right?
I didn't say you couldn't legally work for them. just not as a Cdn employee.
Its not a matter of US taxation, since you live in US, all your income is taxed in US anyways.
it is more an issue of social security and CPP, and the fact that you neither are physically working NOR residning in canada during this time. You are NOT a commuter. Nor are you a Cdn resident, occasionally travelling to US and logging back into the home office.
So,again, they need to either set you up as a US employee (with US payroll) or simply pay you as a contractor. Believe me, this would be better for you and them.
This is done all the time.
Its not a matter of US taxation, since you live in US, all your income is taxed in US anyways.
it is more an issue of social security and CPP, and the fact that you neither are physically working NOR residning in canada during this time. You are NOT a commuter. Nor are you a Cdn resident, occasionally travelling to US and logging back into the home office.
So,again, they need to either set you up as a US employee (with US payroll) or simply pay you as a contractor. Believe me, this would be better for you and them.
This is done all the time.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Thank you very much for your clear explanations. I need to present to my Canadian employer the simplest scheme (my employer does not like to have any contractors because he does like such type of agreements). Would you happen to know which steps should the employer take to set up me (Canadian residing in USA) as a US employee?
They need to contact a US payroll firm. They may also have to file some IRS paperworek by insisting on this arrangement.
You should really be pushing them to make you a contractor, as this will make things MUCH easier for both of you -- and employee benfits are menaingless to you.
So, insist on contractor status, and ask for the cash equivalent of your benefits as part of the deal
You should really be pushing them to make you a contractor, as this will make things MUCH easier for both of you -- and employee benfits are menaingless to you.
So, insist on contractor status, and ask for the cash equivalent of your benefits as part of the deal
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Thank you one more time.
Did I understand you right that I should register myself as self-employed in US first and after that push the Canadian company to work on contracts basis?
Or if it is possible in my case to be a US contractor without any self-employment registration (I’m not going to hire anybody or to have multiple/big income)?
Did I understand you right that I should register myself as self-employed in US first and after that push the Canadian company to work on contracts basis?
Or if it is possible in my case to be a US contractor without any self-employment registration (I’m not going to hire anybody or to have multiple/big income)?