Canadian working remotely from Canada for US company

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Ceeking_answersNew Member
Topic author
Posts: 1
Joined: 4 Jan 2011

Canadian working remotely from Canada for US company

Post Tue Jan 04, 2011 3:48 am

I'm self employed (sole proprietor) living in Canada as a Canadian citizen working remotely for US company via vpn. I get paid 1099 no taxes withheld. I travel to the US a couple of times a year for meetings. Recently, I was denied entry at customs and was told that I needed a visa to enter the US. When asked what my purpose was, I told them that I was going to attend a meeting with my client.

Question:

1) Do I need a visa? If so, what type?

2) I'm not an employee. Do i need a visa?

3) Does the wage listed in the letter of offer matter to the customs officer?

4) is it better to show a lower wage on the letter or is it relevant at all?

5) would you recommend speaking to an immigration lawyer?

Any information would be helpful.
melcNew Member
Posts: 1
Joined: 5 Jan 2011

Re: Canadian working remotely from Canada for US company

Post Wed Jan 05, 2011 6:32 pm

I have a related personal and company tax question.

What are the tax and visa implications if you are a Canadian living in Canada and working for a U.S. based company as a (full-time employee) and paid in USD?

Do you have to personally file taxes in 2 countries and pay taxes twice? Would the annual taxable amount be more? i.e. on 2 countries? Or would it be for the higher country but filed twice?

Are there Canadian exemptions. Also, do I need a U.S. work visa if I physically work out of Canada or another country?

Or it is better to set up my own LLC and sub-contract to them direct?PLEASE HELP!
whittleNew Member
Posts: 1
Joined: 20 Jan 2011

Re: Canadian working remotely from Canada for US company

Post Sat Jan 29, 2011 11:45 am

Sorry to butt in, but my queries are along the same line.

I've been reading the great advice that has been dispensed by angelson and steven about Canadians working remotely for US firms. I am new to the forum and very new to the regulations and responsibilities governing working in the US. There is a possibility that I might be asked to do some consultancy work for a US company which will be mostly remote (from Canada) but involving some travel to Africa. So before my potential employer freaks out thinking he might have to sponsor a visa I would like to reassure him that he does not. I want to make sure that I know what I am talking about when the time comes; so would be glad for corrections to the statements below.

Reading these forums it is my understanding that a Canadian consultant working remotely for a short duration is the equivalent of a contractor in that both categories do not qualify as being employees of the company. It is also my understanding that as a consultant working remotely one is self-employed and therefore wouldn't need to fill out a W-2(what kind of paperwork does establishing self-employment entail ?).It would be great if to get paid in CDN $ with money being deposited into a CDN bank account but if paid in US $ then one has to fill out a 1040 NR and a 8833 and have the company fill out a 8233 (or do you have to do this regardless of the currency?). This establishes that taxes are being paid in Canada,where the person is working out of, instead of in the US. Furthermore, in the case of travel to the US for presentations or meetings one can get a B1 visa at the POE (is this true only for land crossings or at airports as well?). Please point out inaccuracies,if any, in the above statements.

Have regulations changed recently vis-a-vis the above the procedures? How do things change is the company pays in USD deposited into a US Bank account?
Also, if you are self-employed you don't have to worry about things like 0% GST--that's only if you have a corporation and work as a contractor?

Thanks in advance!
AprilNew Member
Posts: 1
Joined: 24 Sep 2012

Re: Canadian working remotely from Canada for US company

Post Mon Sep 24, 2012 9:28 am

Are there any updates to this discussion since 01/11?

I am a Canadian (self-employed) looking to do consultant work for a US consulting company. I will work in Canada primarily but will need to enter the US for client meetings and conferences periodically.

Are there any visa requirements? perhaps the B1 -visa mentioned in one of the earlier threads. ?

Please let me know...
svwomanNew Member
Posts: 1
Joined: 11 Dec 2012

Re: Canadian working remotely from Canada for US company

Post Tue Dec 11, 2012 5:53 pm

I have a similar question. I will shortly be working (as a Canadian) for a US company as a Coach. My work will be done online/Skype through a US based Office365 platform set up by the company (which I pay monthly dues for) or by phone with me based in Canada and the clients (who purchase their product from the US company) could be located anywhere in the world. The US company will be selling the services which are mostly based online. It is my understanding that they will be charging taxes on the purchases at their end.
Should I be paid as a Consultant or Commission? I don't believe that I will be invoicing them and it sounds like they plan to pay us through PayPal at the moment. I am set up as a Sole Proprietor and I do have an HST# for my business done here in Canada.
My question is regarding HST. Will I still have to pay HST on the amount I receive from them? How do I report the funds for tax (Income and HST) purposes?

Thank you for an information you may be able to provide. I haven't had much luck to this point getting answers anywhere else.
littleoneNew Member
Posts: 2
Joined: 5 Feb 2014

Re: Canadian working remotely from Canada for US company

Post Wed Feb 05, 2014 8:47 am

I live in Canada, am a Canadian citizen working remotely for a US company. I get paid via a Canadian non-profit company associated with my US company, who administers my payroll, withholds Canadian taxes and facilitates a benefit package for me. My US company then reimbursed the Canadian company for my costs. I travel to the US many times a year for meetings and conferences. Recently, I was denied entry at customs and was told that I needed a visa to enter the US. When asked what my purpose was, I told them that I was going to attend a conference. Do I really need a visa to attend meetings at my US office and conferences? And if so, what kind? I don't want to become a consultant, I want to remain an employee of the US company, and would really like to retain the Canadian company to administer my payroll and benefits.
E34619CanuckAbroad VIP
Posts: 272
Joined: 3 Oct 2013

Re: Canadian working remotely from Canada for US company

Post Wed Feb 05, 2014 12:24 pm

The problem is that you are actually working as an employee for a US company (not a Cdn one, and not as an independanr contractor), thus anytime you are in US, you are considered to be working for that comapny, you need a work authorization. Your firm should get you a TN for entering US.

The payroll issue is not important. You can keep them. What you need is a TN letter.
littleoneNew Member
Posts: 2
Joined: 5 Feb 2014

Re: Canadian working remotely from Canada for US company

Post Fri Feb 07, 2014 12:31 pm

But do I have to become a consultant to obtain a TN? The US company considers me a full time employee and I would like to remain an employee and not become a consultant. But what I am hearing is that I must become a consultant in order to get the TN. I work 70% of the time in Canada but travel 30% to the US for assorted events.

I should add that I hold a high-level position, as a Director, reporting directly to the CEO.
E34619CanuckAbroad VIP
Posts: 272
Joined: 3 Oct 2013

Re: Canadian working remotely from Canada for US company

Post Mon Feb 10, 2014 9:05 am

Re-read what I said. If you are an employee of US company you MUST get a TN (as you have been told at the border). If you become a consultant, then you do not need a TN. So, no, you do not need to become a consultant to get TN. (You heard wrong).

So the only thing you MUST do is get a TN if you remain an employee, which is simple enough, that you don't need to be exploring other options, unless you prefer to be a contractor (which in your case I would, since you can take care of your own benefits and be paid more -- but that is an other issue)

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