Hello,
I will be giving up my US Green Card and becoming a Canadian Permanent Resident, and I would like to continue working for my current US employer. The US company does not have any offices in Canada. I understand my options are to work as a contractor (self-employed in Canada, no taxes filed to the US, no Cdn taxes deducted, I handle all my Cdn tax) or an employee (paid through a Canadian payroll company like ADP, and Canadian payroll taxes deducted).
My question is, if I go the employee route, would I need to file any taxes in the US at all? Assuming I work from home in Canada the vast majority of the time? What if I work a couple of weeks per year in the US as well - would I need to file US taxes?
Thank you for your help and please feel free to point me to any resources on this topic that might be helpful.
Cdn Permanent Resident telecommuting for US company
Moderator: Mark T Serbinski CA CPA
As long as you choose one of the 2 options you outlined, you will not have to file in US on any of this income. You will be a Cdn taxpayer only.
As long as you spent less than 183 days in any 365-day period, and maintain a home in Canada, you will be exempt from IRS tax. You might have to pay state tax on the income earned while in US.
As long as you spent less than 183 days in any 365-day period, and maintain a home in Canada, you will be exempt from IRS tax. You might have to pay state tax on the income earned while in US.
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
Thanks nelsona, that was exactly what I was looking for. Do you know by chance if a US company can pay Canadian payroll without the company actually being a business entity in Canada? Or where I can look for an answer to this?
I believe for a company to pay Canadian payroll and remit Canadian tax, they need a Business Number with the Canadian Revenue Agency, but I can't find if that applies to foreign companies that do not do business in Canada.
Thanks for your help.
I believe for a company to pay Canadian payroll and remit Canadian tax, they need a Business Number with the Canadian Revenue Agency, but I can't find if that applies to foreign companies that do not do business in Canada.
Thanks for your help.
Any company that opens up a payroll account in Canada has to get a BN number with the prefix RP signifying its for payroll remittances. You can not use another entities payroll account numbers for you payroll deductions and T4's have to be issued by Feb 28 of the following year under your account number. This applies to foreign companies equally.
JG