Maternity Leave

Hi,

I'll be working in the California on TN Visa. My wife is planning to go there with me and look for a job there. However, we're planning to have a baby in 1-2 yrs. I'm not familiar Maternity Leave policy in US.

In Canada, it allow for 52 weeks of leave with a certain percentage of her regular income for a designated period of time while she is off work. This is under the federal Employment Insurance. How does it work in US? California in specific.

Assume my wife found a job in Cali on visa. Does she eligible for maternity leave?

Any comments are appeciated. Thanks!

Maternity leave in the land of "family values" is notoriously bad.

Look up information about FMLA (Family Medical Leave Act)-->http://orb.sfusd.k12.ca.us/forms/HR/FMLA_FAQ_Supervisors.pdf#search='FMLA%20california'

There is NO paid leave unless your employer is progressive and pays it (my sis is a nurse in California and recieved disability pay of 55% of her wage for 8 weeks). A woman has only 3 months of unpaid leave in which her job is protected, after that she could lose her job. There is apparently paid family leave, however, your job is not protected. (Unsure of pay or length of leave).

I would assume that even on a visa your wife would be eligible for this pathetic "benefit".

Also try here: http://www.hr.uci.edu/announcements/FML ... alifornia'

I have a follow up question regarding Maternity Leave and EI benefits in Canada.

I am a Canadian resident, working for a US employer with a TN-1. Since I do in effect pay taxes via the tax treaty and submit a return in Canada as well as in the US, do I qualify for mat leave benefits in Canada? I know that my US employer does very little for me, but it would be nice to know I could get some help back home.

Thanks!

You'd have to contact HR Canada I think and find out from them.

I doubt it though, unless you'll be leaving the US and returning to Canada to have the baby.

I am a Canadian resident, working for a US employer with a TN-1. Since I do in effect pay taxes via the tax treaty and submit a return in Canada as well as in the US, do I qualify for mat leave benefits in Canada? I know that my US employer does very little for me, but it would be nice to know I could get some help back home.

If you're filing a resident T1 in Canada and a 1040NR in the US, I'd say it'd be very hard for any agency to make out that you are not a resident of Canada. I know OHIP considers you've left in this situation, but I don't know if that's ever been put to the test in a court.

Clearly if you are maintaining residential ties to Canada and filing a resident tax return, then you are basically a resident and entitled to resident benefits, unless there's some clause in the law that says otherwise.

It's a bit sticky--my US company considers me a resident (they require me to have a US residence) however my husband lives in Canada. That's one big tie that keeps me a Canadian resident! Joint bank accounts, etc. So yes I file for a foreign tax credit here in Canada. I don't know if it was a 1040 or a 1040NR. I might have done it wrong last year. What is the difference?

I am considering the long-term viability of me working for this company.
1) I'd like to start a family eventually, so it would be nice to get some maternity benefits in Canada, since I certainly won't be getting any from my US employer! I think that since I'm still being taxed as a resident I should get the social benefits.

2) Going forward, the company will essentially allow me to live and work from Canada, and give up my US residence. Although my "official" assignment will be one of our US offices, since there is no Canadian office. Travel to client sites will be a billable expense. Am I exposed to any weird tax situations by doing this? Do I get a full credit for all my US taxes by using the 1040NR or 1040 form? I don't want to be contributing to a us social welfare system for no reason.

3) Am I missing any big considerations?

Thanks,
Usagi

Will the company allow you to take a full year off for manternity leave though? Probably not. You may be able to get Canadian EI maternity benefits, but it is not likely that your US employer will hold your job for you much more than 6 - 12 weeks. Maximum family leave allowed in the US for FMLA is 12 weeks. Unpaid of course.

Thanks Reba,

I'm not too concerned about them not holding my job. I'm fairly certain that wouldn't be an issue for my situation. So if I qualify for some EI benefits here in Canada, that would be great.

I'm more concerned about my second point, and whether I am missing any other big considerations.

2) Going forward, the company will essentially allow me to live and work from Canada, and give up my US residence. Although my "official" assignment will be one of our US offices, since there is no Canadian office. Travel to client sites will be a billable expense. Am I exposed to any weird tax situations by doing this? Do I get a full credit for all my US taxes by using the 1040NR or 1040 form? I don't want to be contributing to a us social welfare system for no reason.

I havr no idea about taxes in the slightest. Steven seems more knowledgable about that. In a pinch though, you will likely want to speak with a tax accountant who is familiar with cross border tax issues.

At the very least, I would suggest that perhaps you find out from your company and when this happens, if they'd consider having you as their "Canadian branch office", so that you could be paid within Canada, instead of thru the US.

I've no idea if that's at all possible, but would make it easier on you for filing your taxes. Not so much on them though of course.