Canadian working remotely from Canada for US company

If we travel or live abroad, we usually come back to visit right? Here's a the place to meet other "re-pats" and Canadians who have returned.
Ceeking_answersNew Member
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Joined: Tue Jan 04, 2011 3:18 am

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: Wed Jan 05, 2011 6:22 pm

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
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Joined: Thu Jan 20, 2011 3:17 pm

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
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Joined: Mon Sep 24, 2012 9:03 am

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: Tue Dec 11, 2012 5:35 pm

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
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Joined: Wed Feb 05, 2014 8:16 am

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.
littleoneNew Member
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Joined: Wed Feb 05, 2014 8:16 am

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.
sonia6New Member
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Joined: Fri Mar 20, 2015 1:05 pm

Re: Canadian working remotely from Canada for US company

Post Fri Mar 20, 2015 1:10 pm

I have a similar question. I work for a USA company from Canada. I am neither a US Citizen nor a Canadian Citizens and neither i hold permanent residents from both the countries.

I work as an agent from US company and they pay me in US dollars which i deposit in my Canadian account. The payment is made without any tax deductions - like a self employed. I invoice the company and they pay me.

Can you please explain if i have to file only Canadian taxes or USA taxes too for 2014? Thanks in advance for your help.
amr199New Member
Posts: 2
Joined: Sat May 16, 2015 8:48 am

Re: Canadian working remotely from Canada for US company

Post Sat May 16, 2015 8:57 am

Hello,
I am a permanent resident living in Canada, Montreal QC, and I am about to sign a contract as a service provider with a TV company based in Dubai, United Arab Emirates, I will be creating promotions for their programs, working from home (Montreal) and sending them the final product online, in return the company will transfer my payments to my bank account here in Montreal. I was told to register myself as a company (individual property, self-employed - sole proprietor) in order for me to issue them invoices and declare the income tax. And currently I have the NEQ and the QST, GST numbers for my company, and I’ve opened a bank account under my company’s name.
Please know that this will be a long term contract, meaning that the quantity of service that I will be providing them might extend for over a year, with almost the same amount of work and payment being transferred by them to my company’s bank account here in Montreal, QC.
Recently I was contacted by the main TV Company in (Dubai-UAE) asking how can they organize to work with me without (them) being held any legal liabilities against the Canadian law? As to (them) they are hiring someone (me) who’s inside Canada, and the work physically is done inside Canada, so they just want to make sure that the Canadian law won’t question them about my rights as a Canadian employee/service provider, or ask them to provide me with any benefits, or pay the Canadian government any taxes on my behalf.
They need to make sure that I – in front of the Canadian law- do not represent an overseas employee (who has other rights beside the monthly payment), but rather a company with a service that I offer to them, and get a monthly payment in return.
How possible is that?
Many thanks
:roll:
Cronos CanadaNew Member
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Joined: Tue Nov 22, 2016 7:47 am

Re: Canadian working remotely from Canada for US company

Post Wed Nov 23, 2016 1:19 pm

Essentially, the US company is treating you as an independent contractor (i.e. running your own small business) as there is no way for them to treat you as a Canadian employee when they have no legal presence in Canada. As long as you operate a legitimate small business and report all the income as foreign income and pay all your Canadian taxes to CRA, including making CPP and EI source deductions (both employer and employee portions), you should be fine as a small business operator with the US Employer as your foreign client.

However, CRA doesn't like Canadian Independent Contractors who just have one client (because in their eyes it is really an employee-employer relationship where the contractor is taking advantage of the lower business tax rates), and hence they can penalize the Canadian Contractor by deeming him/her to be a PSB (Personal Service Business) which would strip them of their right for this lower business tax rate and the ability to write-off business expenses. It's easier for CRA to do this than go after the US Employer residing outside of their jurisdiction.

If you find yourself in this situation, you may want to consider the services of my Canadian based company Cronos Payroll Services (www . teamcronos . com). Our focus is to be the legal Canadian co-employment partner for US companies wanting to hire Canadian workers in Canada. We effectively become the Employer of Record for you (the Canadian worker) and then contract your services back to the US company as our client. As your legal employer in Canada, your US wages would be routed through our company where we would make all the proper income tax deductions, CPP and EI contributions to CRA, remit mandatory worker compensation premiums (i.e. WSIB, WCB, Worksafe BC, Workplace NL), and issue you an annual T4 as any Canadian employer would do. We have been providing this service for years to US based companies who want to hire Canadians to work in Canada as employees, but do not want to establish a legal presence here. We also have one of the lowest rates in the industry which is paid by the US company wanting to employ you. Please email me at doug @ teamcronos. com for more details.

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