Need advise regarding taxes for Canadian Employee of US firm

Talk about anything, with anyone, here.
mcvottncNew Member
Topic author
Posts: 1
Topics: 1
Joined: 9 Nov 2011

Need advise regarding taxes for Canadian Employee of US firm

Post Thu Nov 10, 2011 2:50 pm

Hello,

I am a Canadian citizen and resident currently looking into an opportunity for employment with a US company. I will be living in Canada and working remotely from home (there may only be the occasional travel to the US office for a few days in a year - if any at all).

If I am accepted as a direct employee of this company in the US (which by the way does not have a Candian presence), would I need to file taxes with in the US as well as Canada?

I believe that income tax will be deducted by the US company. From what I know, I will need to report my earnings here in Canada as well as in the US. I am not currently exploring the option of being self employed or incorporated.

Really appreciate if some one would help clarify this for me.
Top
agnelsonCanuckAbroad VIP
Posts: 3263
Topics: 1
Joined: 26 Aug 2009

Re: Need advise regarding taxes for Canadian Employee of US

Post Thu Nov 10, 2011 3:13 pm

As an employee living and working in canada, the US company MUST pay you as a Cdn employee (Cdn/prov tax withholding, CPP, EI). They don't really have any choice on this. They can simply set up a payroll for you. Lots of payroll companies can handle this.

So, your question on paying tax in US, is NO, becuase you will be a Cdn employeee, working and living in canada. No US tax will be withheld.

It really is a better choice to be self-employed in this case, as you can ask them to remunerate you for the US benefits that they won't pay you, and which are almost valueless in Canada anyways.
This site is a travel site and not best source for these topics:
TN and TD info: http://forums.immigration.com/forumdisp ... -TN-Status
For US/Cdn taxes and SS/CPP:forums.serbinski.com/index.php
US Marriage-based Immigration: visajourney.com
Top

Did you enjoy this post? Share it!

 
  • Related topics
    Replies
    Views
    Last post