Hi,
I'm Canadian and have been working in US for 5 years on TN status currently good until 2013. My family and I want to move back to Canada next year. Although we've decided to move regardless, I'm contemplating requesting a tele-commuting working relationship with my current employer . My questions are
1)Can I maintain my current TN status and use it to ease travel to U.S for work purposes?
2) What would be the best way to get paid? Stay on U.S payroll (is that even possible?),request a canadian payroll or get paid as an independent contractor ? I just want to understand better exactly what I'd be asking them to do as its a smaller company.
Returning to Canada with TN status
Moderator: Mark T Serbinski CA CPA
1. You can maintian TN status as long as you work for the US company. You would only be in TN status when you cross the border.
2. YOu should be on a Cdn payroll if you are an employee. This would cahnge your status eligibility when crossing (to either B1, or re-defined TN). Or you could be a contractor. You should NOT continue to be paid and withheld as a US employee at that point -- because you would not be.
2. YOu should be on a Cdn payroll if you are an employee. This would cahnge your status eligibility when crossing (to either B1, or re-defined TN). Or you could be a contractor. You should NOT continue to be paid and withheld as a US employee at that point -- because you would not be.
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! I assume that the B1 or "modified" TN path are only possible if I'm officially working for a viable canadian division of the business? My company already ran into problems extending L1's for some other employees due to the fact that the Canadian "operation" barely even existed on paper. I can't reasonably expect them to do a whole lot there..payroll maybe but trying to get new status requiring a viable canadian operation might be difficult.
So, I'm thinking that the independent contractor path is probably the best way to go. I assume that *technically* speaking, I need to have the language of my current TN changed or get a new one altogether . Do I have any other options for travel as a independent contractor? I'd expect to travel about once / month.
Just out of curiosity, what would happen if I simply moved without changing anything. Would INS start balking at me entering and exiting the U.S so frequently under my current TN? Is it actually illegal be a U.S employee (with status) without physically living in the U.S?
So, I'm thinking that the independent contractor path is probably the best way to go. I assume that *technically* speaking, I need to have the language of my current TN changed or get a new one altogether . Do I have any other options for travel as a independent contractor? I'd expect to travel about once / month.
Just out of curiosity, what would happen if I simply moved without changing anything. Would INS start balking at me entering and exiting the U.S so frequently under my current TN? Is it actually illegal be a U.S employee (with status) without physically living in the U.S?
If you were an indendent contarctor, then that would satisfy the requiremrnt for B1, since the employer would now be YOU, the Cdn resident (CanCo). For a TN, you would still nned to to have the US firm (not canCo) specifically sponsor you.
It is not a question of leagility for you. It is a matter of the firm timely remitting the CPP/EI/and taxes of a Cdn-employee. For you the problem would be the firm withholding all that US tax (and especially SS/Medicare) that you od not owe, and none of the Cdn tax that you would owe. And it is hard to get back SS/Medicare.
It is not a question of leagility for you. It is a matter of the firm timely remitting the CPP/EI/and taxes of a Cdn-employee. For you the problem would be the firm withholding all that US tax (and especially SS/Medicare) that you od not owe, and none of the Cdn tax that you would owe. And it is hard to get back SS/Medicare.
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. I checked in to this more today and I confirmed that our canadian division is completely defunct. So..independent contractor it will be or nothing.
What I didn't realize was that I can also enter under B1 as a contractor. Would I actually need to setup my own canadian business for that to work? I read somewhere that to enter on B1 you must be working for a foreign employer.
Seeing as I have one already, I don't think the TN would be a problem for them.If I understand everything correctly, the TN arrangement would be better as I won't be restricted at all as to what I can actually do when I come here and I also don't need to "appear" to be working for an intermediate canadian business. Do you agree?
I get what you are saying about the witholding. They would withhold as though I'm resident when I'm not which makes taxes much more difficult so I wouldn't want that arrangement anyway.
Thanks again for the help
What I didn't realize was that I can also enter under B1 as a contractor. Would I actually need to setup my own canadian business for that to work? I read somewhere that to enter on B1 you must be working for a foreign employer.
Seeing as I have one already, I don't think the TN would be a problem for them.If I understand everything correctly, the TN arrangement would be better as I won't be restricted at all as to what I can actually do when I come here and I also don't need to "appear" to be working for an intermediate canadian business. Do you agree?
I get what you are saying about the witholding. They would withhold as though I'm resident when I'm not which makes taxes much more difficult so I wouldn't want that arrangement anyway.
Thanks again for the help
"I read somewhere that to enter on B1 you must be working for a foreign employer."
Self-employed means you work for yourself. You are your employer. You live in canada. Thus your employer is foreign. Entering on B1 is done regualrly. There are restrictions as to what you can do compared to TN.
Self-employed means you work for yourself. You are your employer. You live in canada. Thus your employer is foreign. Entering on B1 is done regualrly. There are restrictions as to what you can do compared to TN.
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. I plan to push for a TN arrangement simply because it takes some pressure off my border crossing in that I don't have to worry about saying I'm doing something that I shouldn't be.
I'm still clinging to some hope (however slight) that they might restart the canadian division to maintain an employee relationship with me. I'm curious what you meant when you mentioned a "modified TN" if I were on canadian payroll.If I were on canadian payroll then I'm working for the canadian company. Would the TN just say I'm working for the U.S one as well ? My first TN application included salary info. I'm confused what my salary would be from the U.S company seeing as it would be the canadian one paying me.
I'm still clinging to some hope (however slight) that they might restart the canadian division to maintain an employee relationship with me. I'm curious what you meant when you mentioned a "modified TN" if I were on canadian payroll.If I were on canadian payroll then I'm working for the canadian company. Would the TN just say I'm working for the U.S one as well ? My first TN application included salary info. I'm confused what my salary would be from the U.S company seeing as it would be the canadian one paying me.
When a US company uses a Cdn thru a Cdn firm, and the activities would not qualify for B1, then the US firm (not the Cdn one) would write a TN letter for the worker to allow entry into US. Nothing would affect who the actual employer was or the manner of payment.
The Cdn company would merely be mentioned in the letter, not as the sponsor.: MR A, an employee of CanCo, is requesting entry underr NAFTA to provide the following service to USCo...." then let the border decide if it's TN or B1.
The Cdn company would merely be mentioned in the letter, not as the sponsor.: MR A, an employee of CanCo, is requesting entry underr NAFTA to provide the following service to USCo...." then let the border decide if it's TN or B1.
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. I understand the immigration issues better now which will be helpful when I bring the whole thing up. I will appear to have some concept of how this can work and not be expecting them to figure it out.
BTW, you have been incredibly helpful to our family during our time in the U.S. It is not easy to find qualified and knowledgeable help in these areas and your willingness to provide advice and answer questions for free is just astounding to me. You are performing an invaluable service on this board here so I hope you feel appreciated for it.
I don't think I'll be "bothering" you again until it comes time to do my taxes for the first year after moving back. I've got the S.O.P for canadians leaving the U.S down but I expect to become confused about some aspect of the U.S filing after returning if I do stick with my current employer as a contractor.
Thanks again and have a happy new year.
BTW, you have been incredibly helpful to our family during our time in the U.S. It is not easy to find qualified and knowledgeable help in these areas and your willingness to provide advice and answer questions for free is just astounding to me. You are performing an invaluable service on this board here so I hope you feel appreciated for it.
I don't think I'll be "bothering" you again until it comes time to do my taxes for the first year after moving back. I've got the S.O.P for canadians leaving the U.S down but I expect to become confused about some aspect of the U.S filing after returning if I do stick with my current employer as a contractor.
Thanks again and have a happy new year.