Canadian resident, 90% remote work for US firm

Sthornington · Post by **Sthornington** » Thu Feb 18, 2016 5:23 pm

Hi folks,

Apologies for beating a dead horse. I am a Canadian resident, planning to work for a US company, 90% remotely, but 10% in the USA (and not just meetings, and sometimes for a few weeks, but never more than say two months of the year total).

Is this a workable plan:

foreign contractor, self-employed in Canada
TN-1 visa for the times I am working physically in USA
8233 tax treaty
8833 ??
1042-S for NR work performed
file Canadian taxes (only) every year, possibly installments etc

My main concern is whether TN-1 visa is allowed for foreign NR contractor work, for tax purposes. Some places say it's okay, some places say it's not.

Thanks!

Simon.

nelsona · Post by **nelsona** » Thu Feb 18, 2016 5:37 pm

Sounds good. You would only have to file a 1040NR if there was some incorrect withholding done wile your paperwork is being processed. 8233 will cover the treaty issues, no need for 8833
TN can be self-employed as long as the CLIENT sponsors your TN, and not YOU or YOUR COMPANY.

Sthornington · Post by **Sthornington** » Thu Feb 18, 2016 5:54 pm

Ahh bingo, ok, yeah they are fine with that. Great! Thanks!

Sthornington · Post by **Sthornington** » Fri Feb 19, 2016 2:21 am

Does the situation change if the employment agreement refers to me as an employee vs a contractor?

nelsona · Post by **nelsona** » Fri Feb 19, 2016 12:51 pm

Yes. You can't be a US employee if you live and work in Canada. They would need to treat you as a Cdn employee, with Cdn withholding.