Canadian citizen/resident considering job with US company

ammsilva · Post by **ammsilva** » Tue May 08, 2012 8:43 am

Great posts and information. I think my situation is a little different and was hoping to get some feedback...

I am a Cdn citizen and resident who is considering a job offer from a small US company (LLC). The position would have me working from home (Ontario) and traveling to do project work in the US 30-50% of the time. Moving to the US is not an option, my family and I want to stay in Ontario. The pay would be 100-150K (depending on bonus).

What is a little different with my situation is I have a commuter green card that permits me to enter the US for work. I currently work for a Cdn company but because I travel to the US regularly for work, I'm able to maintain the commuter status green card. I obtained the green card with a former US employer and as it was in process I moved back to Canada. So when I got the green card I applied for commuter status and have been using that since (about 7 years or so).

I'd like to identify the best scenario regarding this new job offer. As I understand it, my options are:

- work as a subcontractor and invoice the company regularly (are there any issues with doing this, since the invoices will be exactly the same - equivalent to working full time for the employer)

- ask that they setup a Cdn business identity and pay me as a Cdn (they're a small company and I don't see this as an option)

- work as a full time employee, be paid in US dollars, equivalent to a full time US employee

My concerns are around:
- tax implications and what filings would be required
- maximize take home pay (e.g., would being a sub allow me to write off more)

Any guidance would be appreciated. Thanks.

nelsona · Post by **nelsona** » Tue May 08, 2012 9:50 am

Just to clear up your commuter GC status, are you getting an I-178 every six months, and USCIS is accepting your work arrangement? I always thought commuter GC required employment by a US firm.

If so, then, its business as usual for you in terms of commuter GC.

Now, as to how you are paid. If you live and work in canada, you should be paid as a Cdn employee. Otherwise, you will have trouble at tax time.

Your best bet is contractor.

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ammsilva · Post by **ammsilva** » Tue May 08, 2012 3:10 pm

Thanks for the prompt response.

I am getting the I-178 every 6 mths, I'm using a job letter from our parent company which is headquartered in the US.

I want to present a win-win for my potential employer. Is it beneficial for them to hire me as a sub (besides the fact there are no issues for termination). What additional filing do they have to do?

Are there benefits for me from a tax standpoint and maximizing my take home pay?

nelsona · Post by **nelsona** » Tue May 08, 2012 4:45 pm

No extra filing, you give them your SSN and they pay you, no withholding is required.

Obviously thereare advantages. but not a cross-border issue.