Question about residency (TN and TD visa)

[jaiko]

Hello,

I hope you can give insights on the following questions. We are Canadian citizen and I got a job offer this month to start working on April in Pennsylvania. I will go for training, probably around 2 weeks, and come back to Canada to work remotely for US employer, and will move with my family on July 1 (or one or two days prior).

1. I will be on TN visa and most likely I will be considered as a US resident. My spouse will be on TD visa and she is on discussion to work remotely for her Canadian employer. What will be her status? I also read somewhere that she should ask her employer to remove CPP and EI premium from her contribution, is that correct?

2. We are thinking to hold our RRSP in Canada as per other thread discussion - we are planning to go back to Canada in 5-10 years. Do you know if Pennsylvania recognizes RRSP (means not taxing the gain within the RRSP)? I cannot find any information other than California who does not recognize it.

Thanks in advance.

[nelsona]

1. You and your family will be resident after July 1. Her work arrangement is problematic, and the CPP/EI is merely one aspect. She needs to be careful not to violate her TD status, which does not allow her to work in US. It is *somewhat* permissible to telecommute as long as (a) her firm has no US presence (no sister/parent company), and (b) there is no advantage for them that she is in US (no US clients, no US resources are needed). Otherwise she needs to be put on the US payroll, with her own legal work status.

Removing CPP/EI would, in my opinion, flaunt the fact that she is working in US. It would also technically make her liable for SS and medicare payments. I would be letting thins be a low-key as possible.

2. California is the only state that taxes internal RRSP income.