Taxes for remote Canadian contractor with occasional travel

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canoook
Posts: 1
Joined: Wed Feb 08, 2017 3:00 am

Taxes for remote Canadian contractor with occasional travel

Post by canoook »

I am planning to work for a US firm (without Canadian presence) remotely from Canada, under a TN status.

This contract will require me to travel to the US office for a week to work on-site, every 4-5 weeks, so I'll spend about ~2 months in the US per year.

In this case, would I need to pay US taxes (FICA + State + Federal), even though I don't meet the substantial presence test? Or do I only need to worry about Canadian taxes?

If you've been in a similar situation before, I'd really appreciate your insight!!
nelsona
Posts: 18699
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

As long as you are a self-employed, you will have no US tax or FICA.
If you are an employee however, paid under W-2, you will have to pay US, state and FICA, which will be then credited on your Cdn return.
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
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