TN visa and 1099

Hi,

I am a Canadian, residing in the USA on a H4 Visa. I have been offered employment on a 1099 or Corp-Corp.

After doing to research, 1099 seems to be the quickest and easiest way to start work. My questions are:

1. Will working on 1099 have any bearing on my TN status when I reapply for a TN visa?

2. Do I tell the officers that I will be working on 1099 when I go to the border to apply for the TN.

3. I currently have a Tax ID number, can I use that number for the 1099 form?

4. Do I use the W-8 or W-9 form for tax purposes? Are there any tax withholdings for my case?

Thanks in advance!

1. 1099 is permitted on TN.
2. Your employer is writing the letter, not you. They need to describe the remuneration.
3. The employer will accept your ITIN for 1099, but now that you will be eligible for SSN, you want to apply for that.
4. If you do not supply SSN, the company MUST withhold. Once you get an SSN, submit a w-9 to the employer. But whether you have withholding or not, you will be taxable in US on this income, so will want to make sure you are submitting about 25% tax quarterly to IRS, and some to state as aell.

thanks for the response.

1. Would I use the 1099-MISC form? I read somewhere that is violates the provisions of the TN visa. Is that true?

2. My employer has mentioned that the term of employment is 1 year and temporary in nature, on the offer letter. IS that ok for renumeration? or does he need to be specific that employment is on 1099?

3. On the W-9, it says this form is for resident aliens only, on a TN, I would be a non resident alien. Do I use form W-8?

Please advise.

thanks!!

1. You do not use anything. Your employer/client fills in 1099. 1099 -- as isaid earlier, is permitted on TN.
2. yes, specific.
3. No, you are already a resident alien on H4, and will certainly be one when you get TN. You need to get SSN before filling W-9, so don't worry about that.

Hi thanks for your response.

When I use the W-9, will this have any bearing on my RRSP's in Canada? Would I be considered a non resident in Canada and resident alien in USA?

You already are Cdn non-resident.

This sounds related to an offer I've received; A potential employer is offering to pay me on a "purchase order" basis. I.e. paid an agreed upon amount for a specific work package.

Can they provide my TN letter if this is done as 1099? Would they be my employer? I've read self-employed individuals cannot obtain TN. Employer has offered to hire me as an employee (but still subject to same pay structure.. commission based then?). I already have an SSN from my last TN assignment. Trying to figure out the best and easiest way to make this offer work.

TN on 1099 is not self-sponsoring if the client gives you a TN letter and you get TN.

Thanks for the help. It was written that the TN letter should specifically detail the 1099 payment method.

My current employment opportunity is to be paid on a "purchase order" basis; a set price for a given work package. All employees at this firm are paid as independent contractors (Form 1099). I have drafted the following paragraph for the TN letter (to provide my employer to provide me...), duration & compensation section:

"Mr. X’s professional affiliation to ABC Aerospace will extend from July 11, 2011 until no later than July 10, 2014. Compensation will be purchase-order based, and paid upon completion of pre-agreed project work packages. Mr. X will be paid as an independent contractor working for ABC Aerospace and issued Form 1099’s. The estimated hourly wage for his work, based on nominal performance, is $80/hr."

Any advice / comments would be greatly appreciated.

... already answered on an actual Us immigration board.