Canadian on TN status

[Dgahan]

Hello, I’m a Canadian on a TN status working remotely and living in the U.S. I’m contemplating returning to Canada to live there, and continuing to work remotely in the U.S. If I went that route, how would this impact my taxes in the U.S. and then taxes in Canada? Would this impact my U.S. employers or would they just continue as before if I provided a U.S. address?

[nelsona]

If you return to Canada, your US employer is, in efect, becoming an employer of a CDn employee, and would this have to set up a Cdn payroll, either on their own, or thru an agency. This would be to handle CDn tax/EI/CPP requirements.

Or, you could become a contractor.

[Dgahan]

Thanks so much for your reply “nelsona.” I greatly appreciate it. If I return to Canada, they can no longer pay me through a U.S. bank? I do actually work as a contractor in the sense that I work for multiple educational organizations, not full-time as an employee, but rather contracts are issued every semester. How does that make a difference? Thanks again.

[nelsona]

How they pay you is unimportant. But they will need to make a CDn payroll for you.
By contractor I mean not paid as an employee. In US that means being paid by 1099 or corp-to-corp, not W-2.

[Dgahan]

It would still be a W-2 so then as employee. Even if I retain a US mailing address, they would still need to make a CDN payroll?

[nelsona]

This is not permitted. They need to set you up as a CDn employee. There are other posts on here that explain this, using a payroll agent.

[Dgahan]

Thanks so much for letting me know.