Rogie wrote:I may have to go to the US office for up to 6 months and work out of that office
Depends on the term of the employment, if you're only doing it for a few years then the category you want is L-1B, the US branch of the company needs to sponsor you for that by filing an I-129 and you must have "specialized knowledge" to get it, this means bespoke knowledge about the company that someone off the street wouldn't have. You DO NOT need a visa if you're a Canadian citizen, endlessly on here we seem to get people asking about L-1 visas and their idiot employers hiring idiot lawyers to help them get it. You do need some paperwork to go with the approved I-129 (basically some evidence you have specialized knowledge and proof you work for a foreign branch of the same company) but Canadian citizens can apply at a POE for L-1 status, there is no need for a visa, it's a waste of time and money.
The other alternative if this is going to be an on-going situation for many years is "L-1 intermittent", this is basically the same as L-1B except it only allows entry for up to six months a year (total), but it can be renewed indefinitely, L-1B is limited to five years.
although I will continued to be paid by my Canadian division.
You'll be paid by the US division, you have to be for tax reasons, plus they're the ones sponsoring you for the L-1 so you effectively become a paid employee of that division.
The US division will put you on their payroll and issue you a W-2, this requires you to get a social security number, which you get by showing proof of status (your I-94) to the local SSA office.
Each year you will file a 1040NR and a Form 8840 with the IRS and declare any US-source income (mainly your W-2). On the Canadian end you declare the income from your W-2 (converted into Canadian dollars) on your T1 and claim a foreign tax credit. You can claim FICA
taxes too because of the tax treaty. You'll probably have to pay some additional Canadian tax on top of it because the rates here are usually higher.
When you fill in W-4 (equivalent of TD-1) in the answer to question 6 you put down "non-resident alien" and they're supposed to withhold at a slightly higher rate.
The best way of approaching this is to file your 1040NR and wait and see if you get a
tax refund before claiming a tax credit, otherwise it just makes the calculation more confusing when you do your T1.
Steve.