Canada non-resident income taxes

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tufa4311New Member
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Posts: 3
Joined: 15 Jan 2011

Canada non-resident income taxes

Post Mon Feb 14, 2011 6:54 pm

I will be telecommuting from the US to Canada. The CRA has confirmed that I will most likely direct my employer to stop deduction Income Tax, CPP, and EI. This will be formally confirmed once the CRA responds to my Determination of Residency Status form. Once that is confirmed and my employer stops deducting Income Tax/CPP/EI what tax forms should my Canadian employer provide me (even if they made no deductions). Would it still be the T4? (note: I'm a dual US/Canada citizen)
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agnelsonCanuckAbroad VIP
Posts: 3262
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Joined: 26 Aug 2009

Re: Canada non-resident income taxes

Post Tue Feb 15, 2011 4:56 am

They will either have to set up a US payroll for you, or make you a contractor.

The people you should have been talking to were your employer, not CRA.

This was something to negociate with them, not with Govt.

You might be in for a nasty surprise now, as many companies don't like to have to set up a foreign payroll for one employee, and they may let you go or make you a contractor with no benefits (which is fine -- Cdn benefits don't count for much in US).

You will now have to pay US social security and medicare (either as an employee of this now-US company) or as self-employed in US on this income. You will aslo have to make sure that you send at least quarterly taxes to IRS and state on your income.

And your Cdn company may have to withhold some taxes as well, since you are non-resident.
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