Fri Sep 26, 2008 10:48 am
Actually it's pretty straightforward as you are simply an alien employed by a US company. The only wrinkle is that you are self-employed in Canada, so you can carry on having Canadian clients and doing your own payroll withholding and prepare your own T4, etc. as per usual, the only difference is that you also have an additional source of income which will be on the W-2 they give you and you have to claim a foreign tax credit for it.
But there's no other paperwork on the Canadian end because they've done all the withholding in the US, and your US tax return should be relatively simple if all you have is a W-2 and that's your only US source of income.
Steve.