Social Security exemption for Canada resident working in US

[amalfi]

Hello,

I'm considering a job offer in the US, for a US employer, and I'm trying to anticipate my taxes and CPP/Social Security.

I'll be on an H-1B visa. (No worries about getting the visa. Employer is cap exempt and has verified my eligibility with their legal counsel.)

I'm planning to maintain my Canadian residence at least for the first year, while also being resident in the US. That is, I don't plan to give up my home in Canada, and the employer might let me do up to 25% of my work from my home in Canada. (The rest of the time, I'll be living in US and working at the US office.) From what I've read online (including this website) it seems that I'll be a Canadian resident for tax purposes, and I'm ok with that.

I have two questions about getting exemption from US Social Security deductions.

1. Apparently, in order to get the exampltion while on an H-1B visa, I have to fill out CRA form CPT 56A. However, the form asks for my Canadian employer - it assumes my employer is Canadian. I'll have a US employer, but I'll be Canadian resident for my taxes. So I want to pay CPP not Social Security. It's confusing. Has anyone dealt with this?

2. If I get exempt from US Social Security, then I guess my employer will also be exempt from what they would have had to pay as their share of my Social Security. Am I right? I'm wondering how much money I might be saving the employer - which I might ask them to pay me instead, that I can use toward my CPP payments.

I'll appreciate any advice or info -- thanks!

[nelsona]

Employees of US firms working in US (even if keeping their CDn tax residency by commuting) are still subject to FICA payments. CPT doesn't apply, and you have no choice in this. And you will not be allowed to contribute to CPP on your own for these US wages.

The good news that after paying this for as little as a year and a half, you will be entitled to some SS when you retire.

The employer is not exempt from their portion of FICA either.