Working remotely in Canada for US company

41

Actually HR refused to share such an information with me.

42

I’ve been trying to follow this thread and figure out where everyone is at with things so I’ll state my situation and see if it matches up with anyone’s.

I am a US Citizen who just got PR status in Ontario, my current employer (US Company, I am currently working in the US) wants to see if it is possible for me to work for him remotely, from Canada, for a few months after I move.

Being a US Citizen I do not believe I need a work visa to conduct any US work (I could be wrong? @kshankar88 is this your situation? )

A PEO sounds like an unnecessary middle-man for me. I only plan to do this work for a few months, which means starting my own company in Canada seems like more work than it is worth. So it sounds like the dual-tax declaration is my best bet?

43

Are you trying to not have a US LLC/corporation? Because you can open an entity in US, and invoice your current employer (who’ll be your client in this case).

Also, if your employer is fine with you working remote, I think you can continue working as an employee of the US employer, while being based in Ontario. Only thing you need to manage is how you’ll file your taxes (IIRC, you’ll have to file US tax returns, and also Canada tax returns based on your residency)

44

Hi Kshankar,

I am a Canadian PR, hoping to work for a US firm .I know this is an old thread, I am in a similar situation as yours and I wanted to know from you, what did you finally do ? Were you able to work for a US company that does not exist is Canada? How did you take the payment and how did you deal with the situation of tax ?

Would really appreciate if you could provide some information.

45

Hello,
I did not have a chance to move to Canada, instead moved to a different country. Sorry that I cannot help as I do not have info.

46

which country is that “different country” :slight_smile:

47

Hi,

I am am a Canadian PR, did soft landing on March 2020 but still waiting for my PR card to be delivered. I am planning to move to Canada permanently in May but still want to continue working with my US employer remotely. I know my options are either to form my own company or be employed through a PEO. Is there any other option? My employer does not have any office in Canada.
Can I work for my employer remotely from Canada?
Should I wait to get my PR card before moving permanently?
Did anyone work for a US company remotely using a PEO? Please share your experience.
How do I receive the payment and deal with the taxes of both countries?

48

Hi @rjtbansal

I am planning to create proprietorship/ corporation in Canada. Did you hear back from your friend regarding creating a corp? I’d appreciate if you can share your/his experience in that matter.

Deep

49

@DHPATEL , my previous company already had an arrangement with a PEO agency so I didnt have to create corp or anything.

50

Following this thread. I am a recent Canadian PR holder and looking into creating corp in Canada

51

@ntn The second option you have mentioned about employer being fine with working remote - for employee, is this option as simple as taking care of taxes in both countries? Any idea what implications come into picture from employer’s perspective to have a Canadian PR (a foreigner) on payroll?

52

The second option works if the following are true:

  • you have an active H1b as long as you are employed
  • you have an address in US (and bank accounts have this address). This way you have a residence in US, and you’ll pay taxes based on that.

If that is true, then taxes are withheld in US, you file tax returns in US, and file returns in Canada (I haven’t done this, so better to file with a CPA). Employer should have no issue.

If neither of these or true, then I’m not sure if you can go with this option.

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53

Hi There,
I followed the thread, I am in similar situations. I am a Canadian citizen working on US payroll and staying in US on a TN but due to COVID I am planning to work remote from Canada with my payroll on US. Does it cause any legal issues?

54

@ntn Thanks for the immediate response. I will be out of status soon so this option is not going to work for me. Any idea about working as consultant or working with PEO from Canada that would help me maintain my current job with my US employer. I have read the thread but would like to know more about both options in detail.
Thanks

55

Hi I hope you are well. I’m wondering if you got any answers to your question? I am a Canadian citizen and have a US company that wants to hire me as a GM but i will continue to stay in Vancouver. I don’t mind getting paid into an account in Blaine Washington but they want to make sure they are covering all bases legally in Canada and the US.

56

Thanks a lot Mmckay.

57

I am in a similar situation. I’m a Canadian Citizen currently working on a TN-Visa in the US but planning to move back to Canada this fall as my wife is going back to school to get her Masters. In an ideal world, I’d like to stay on with my current employer but work remotely from Canada (architecture industry). Besides submitting a W-8BEN form, what else do I need to be considering.? I’m trying to pitch this to them and make it as simple as possible but also need to be sure I am fully understanding the impacts and requirements from my side of things. Will I be able to cross the border for meetings, etc. once I give up my TN visa? Any help or insight would be appreciated.

58

I am planning to create a PEO too. Following this thread.

59

Hi Ketaki,

I think these articles might be helpful:

What are PEOs and EORs? https://canadianpayrollservices.com/what-are-peos-and-eors/
Working through a PEO Agency: https://canadianpayrollservices.com/sole-proprietors-employees/
Legalities of Hiring Remote Canadian Workers: https://canadianpayrollservices.com/legalities-hiring-remote-canadian-workers-us-companiesï»ż/

Best of luck!

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