Working remotely in Canada for US company


#1

Hello,
I currently work in US for a company and it does not exist in Canada. Due to VISA issues, company and I decided mutually to have me work remotely from Canada.
I am currently working towards PR, have written IELTS test. If all go through well and if I get PR, I will be working as independent contractor (1099 based) from Canada.

Has anyone been through this situation. I would like to be wary of anything that comes by and also I do not think I can claim to have a job offer because I will be working for a US company and on contract. Any thoughts/advice would be much appreciated.


#2

#3

If your company cannot pay you from their payroll in Canada, the next best option is to be paid via a Canadian entity (think contracting for your US company via a Canadian 3rd party who will then pay you).
I doubt your US company will be able to pay you in Canada which means you will be paid in USD into a US bank account which will overly complicate your taxes as you will need to file in the US as well as Canada. You wont double pay because of double-taxation treaties.

In either case its probably best to get outside counsel from a tax attorney since its not straightforward.


#4

Is the second option (being paid by US entity in USD) feasible even if one does not hold US work permit anymore?


#5

How about setting up a company in Canada by yourself (e.g. ABC consulting), and then ABC consulting gets paid in Canada through the US company? Or is it the same thing as you mentioned?


#6

Nope. Pretty sure you still would need H1b or other work visa sponsorship. AFAIK there is no requirement for you to be in the country (except for a few days maybe) but you would need your visa to reflect that fact. Again, quite delicate issues and these would need to be validated by an attorney.

@anshul.v.joshi’s comment of your own Canadian consulting company may be a possibility but would involve a lot of work which I would rather focus on getting a job in Canada instead.

The main reason I would see to hold onto a US job other than the money is the ability to return on a L1 (with PR) or TN visa (after citizenship).


#7

Thanks @kish. That clarifies and help me to narrow down my options.


#8

Another option that may work for you - there are PEO (Professional Employer Organization) service companies that act as intermediary for Canadians working for US employers such as this one: https://canadianpayrollservices.com (I randomly picked this one, you will find many others if you google).


#9

Thanks @am1. I am already exploring it as someone else also mentioned them in one of the threads. Going through their/others FAQs to better understand how it may work and would pitch them to my employer accordingly.


#10

Thanks @kish and @anshul.v.joshi.
I am not going to be on any Visa permit for US as it expires in January and hence I am moving to Canada. I would still be working for US company outside US (Canada) and I got to know they would pay in USD.

I know that I can start a company, say ABC consulting only if I get a PR but looks like for my case, it is good to self employ me with ABC consulting and then have my US company pay them?! It sounds like chicken-egg scenario.


#11

I have read that you need H1B only if you are physically present in US and getting paid for it. A US company may pay any consultant overseas, but they don’t necessarily have to sponsor him/her for an H1 correct?


#12

I second @anshul.v.joshi about H1B, I think its only needed for physical presence in the US.


#13

So there are 3 ways you can do this-

  1. Get paid in USD but file for taxes in both US and Canada although no double taxation because of the joint treaty
  2. Pick an intermediary such as Canadian entity or reliable consultancy who can be paid from US company and who can then pay to me in CAD
  3. Setup a company yourself but would involve lot of work and get it paid through US company on contract.
    In this approach, I’m not sure if I can set up a company without getting a PR?

Overall, does any approach contribute for my job score in CRS (200 points)??


#14

Only if you are offered a job from a Canadian company with a offer letter and all the works.

  1. That’s easy (relatively)
  2. There are some companies that advertise this service; your US company should be willing to do this.
  3. You can register a company as ‘extra-provincial’ (based on a quick google search I did).

#15

So regarding getting the CRS points for the offer letter, its seems to be a possibility only with option #2. Correct?


#16

To get CRS points for a job offer, you also need a positive LMIA for the open position.


#17

@dheeraj @rjtbansal
Check this post which I found today
https://www.quora.com/If-I-have-an-H1B-visa-in-US-will-I-have-more-chances-to-receive-a-PR-permanent-residency-card-in-Canada/answer/Doug-Peng?share=ec04d3ac&srid=iVrP

Yes, option 2 of having Canadian PEO can provide you job offer which you can use for your Canadian PR application as well. But your US company should agree to work with the PEO


#18

Thanks @kshankar88. This is really good. Now the trick is if they will be open to this. I will lay my cards out at the right time.


#19

Thanks @kshankar88. Looks like Cronos has changed to Canadian Payroll Services, the one we were looking at before.

Hope the employer agrees to that.