Is there a feasible way of working with US employer in Canada, with/without H1b?

[rj16]

Guys,
Like the question says, is there a way? I would prefer to ditch H1b and work directly with a US employer. One idea was to start an LLC or Inc. company, which would do business with US employer? Has anyone researched about this approach?

If not, can we realistically continue working on H1b for long time? I know paying taxes in both countries could be a hassle, but I would rather continue working until I find something concrete in Canada.

 

[Shereef]

Guys,
Like the question says, is there a way? I would prefer to ditch H1b and work directly with a US employer. One idea was to start an LLC or Inc. company, which would do business with US employer? Has anyone researched about this approach?

If not, can we realistically continue working on H1b for long time? I know paying taxes in both countries could be a hassle, but I would rather continue working until I find something concrete in Canada.

Why would you pay taxes in both countries just submit your w2 to the Canada's IRS counter part and you should not pay taxes in Canada


But the LLC thing a friend of mine works remotely and he does that in UK, and I am planning to do the same in Canada later

 

[kevon2310]

Yes, you can work for a US employer if you are in Canada, but it will be without the H1B

 

[rj16]

Why would you pay taxes in both countries just submit your w2 to the Canada's IRS counter part and you should not pay taxes in Canada


But the LLC thing a friend of mine works remotely and he does that in UK, and I am planning to do the same in Canada later

I am assuming if you're working for a US employer on H1b, you would still need to pay US taxes. Actually I'm not even sure if you can work on H1b outside US on permanent basis. I read somewhere that your primary location needs to be within US. I'm sure it's okay to work outside US for few weeks, or may be months. Can anyone shed more light on this?

I think LLC would be the way to go, assuming your client/employer doesn't mind it.

 

[DEEPCUR]

I am assuming if you're working for a US employer on H1b, you would still need to pay US taxes. Actually I'm not even sure if you can work on H1b outside US on permanent basis. I read somewhere that your primary location needs to be within US. I'm sure it's okay to work outside US for few weeks, or may be months. Can anyone shed more light on this?

I think LLC would be the way to go, assuming your client/employer doesn't mind it.

Once you are out of US, you are not in H1b status. Visa stamp doesn't mean anything. And it is employer's call to dictate the work location they want. It could be anywhere. I don't think anyone will come questioning this! It should be fine!

 

[karthik2479]

Once you are out of US, you are not in H1b status. Visa stamp doesn't mean anything. And it is employer's call to dictate the work location they want. It could be anywhere. I don't think anyone will come questioning this! It should be fine!

I do not think so - US DOL makes you file the LCA for a reason - that the work location is within the US. So technically, your US employer cannot allow work to happen outside of US - maybe for a limited time as on vacation but not on long term basis. So employer cannot dictate the work location unless they make changes to the LCA.

 

[DEEPCUR]

I do not think so - US DOL makes you file the LCA for a reason - that the work location is within the US. So technically, your US employer cannot allow work to happen outside of US - maybe for a limited time as on vacation but not on long term basis. So employer cannot dictate the work location unless they make changes to the LCA.

All LCA is applicable only when is within US. DOL cannot say from a person should work for a job, it's employers call. As long as someone is in US, they need to abide by LCA in wages and duties. Last year, I worked from India close to six months getting paid in dollars due to personal reasons. When my manager checked with attorneys, they said the same.

 

[arrayofhope]

I am assuming if you're working for a US employer on H1b, you would still need to pay US taxes. Actually I'm not even sure if you can work on H1b outside US on permanent basis. I read somewhere that your primary location needs to be within US. I'm sure it's okay to work outside US for few weeks, or may be months. Can anyone shed more light on this?

I think LLC would be the way to go, assuming your client/employer doesn't mind it.

You can work outside of the US for an American employer without any US visa. However if you wish work for an American company from Canada, you would need legal status in Canada. You don't need a work permit, but only need legal status such as a visitor's visa,study permit, temporary or permanent resident etc.

If you are on temporary visa and work remotely for an American company, you generally wouldn't be required to file taxes in Canada, only in the US assuming your employer credits your salary to a US bank account. (I am not very sure about the taxes, you should check with an good Tax accountant). But if you get permanent residency in Canada, I'm assuming you will have to declare the foreign income and file for taxes in Canada and US if it applies.

You don't really need to start a LLC, you will still be considered a W-2 employee, unless your employer classifies you as an independent contractor and provides you a 1099 at the end of the year.

Hope this helps.

 

[prachinshah]

You can work outside of the US for an American employer without any US visa. However if you wish work for an American company from Canada, you would need legal status in Canada. You don't need a work permit, but only need legal status such as a visitor's visa,study permit, temporary or permanent resident etc.

If you are on temporary visa and work remotely for an American company, you generally wouldn't be required to file taxes in Canada, only in the US assuming your employer credits your salary to a US bank account. (I am not very sure about the taxes, you should check with an good Tax accountant). But if you get permanent residency in Canada, I'm assuming you will have to declare the foreign income and file for taxes in Canada and US if it applies.

You don't really need to start a LLC, you will still be considered a W-2 employee, unless your employer classifies you as an independent contractor and provides you a 1099 at the end of the year.

Hope this helps.

Thanks for sharing your thoughts. I am in the same situation currently. I am on H-1B Visa and working in the USA. I got my PR in Canada and now want to continue my employment for this same US based company from Canada. Can I do that? No problems with H-1B, correct? Does company have to pay me in USD in US Bank account or in Canadian bank account? Also, can my USA bank accounts be active or not? Do I have to change my address to Canadian address with the company and banks? Any tax accountant recommendations with such scenario? PLEASE PLEASE HELP. Thanks.

 

[arrayofhope]

Thanks for sharing your thoughts. I am in the same situation currently. I am on H-1B Visa and working in the USA. I got my PR in Canada and now want to continue my employment for this same US based company from Canada. Can I do that? No problems with H-1B, correct? Does company have to pay me in USD in US Bank account or in Canadian bank account? Also, can my USA bank accounts be active or not? Do I have to change my address to Canadian address with the company and banks? Any tax accountant recommendations with such scenario? PLEASE PLEASE HELP. Thanks.

Once your employer agrees and you move to Canada and start working remotely, the H1-B visa is of little or no use except for travelling back and forth to the US(if you hold a tourist visa - then you don't need the H1-B at all). Your company might have issues paying you in Canadian dollars or to your Canadian bank account. TD bank and RBC have cross border banking(basically you will have an account in the US and another one in Canada). Once you have this, you can move your money back and forth quite easily and right now having US$ is more favorable due to the exchange rates.

Your US bank accounts/credit cards can be active for years without you being in the US. I have several US accounts and I no longer reside there. As for address, it should be your Canadian address and there won't be any issues with any of your US banks. Taxes are going to be more complicated for sure, but expect to pay a little more. I've only recently moved to Canada and I've never done taxes here. If you take some time to research how to file taxes, you should be able to figure it out yourself and save some hefty fees charged by tax consultants.

 

[karthik2479]

So I have a question on this - assuming your US company is fine and pays you in USD in your US account, when time comes to renew your PR or get citizenship, basically you did not have any income in Canada - all in US for which you may have claimed reciprocal taxes and paid differential based on tax laws - and hence will they not question your ties to Canada and reject your citizenship or PR renewal?

This is because you were never employed by a Canadian company nor paid any salary here. While it may be beneficial in the short term will it not have a long term impact?

 

[arrayofhope]

So I have a question on this - assuming your US company is fine and pays you in USD in your US account, when time comes to renew your PR or get citizenship, basically you did not have any income in Canada - all in US for which you may have claimed reciprocal taxes and paid differential based on tax laws - and hence will they not question your ties to Canada and reject your citizenship or PR renewal?

This is because you were never employed by a Canadian company nor paid any salary here. While it may be beneficial in the short term will it not have a long term impact?

As long as you live in Canada you are still contributing to the economy in several ways. You might buy property, you will still end up buying stuff from Canada for daily living, pay taxes(even if you have only US income). There is no question of ties to Canada once you actually live here.

There are several Chinese millionaires in Vancouver BC who don't work for anyone in Canada. They just have their businesses back home.

 

[karthik2479]

Thanks

 

[canuck78]

You need a tax accountant. The Chinese millionaire whose family lives in a huge house in west Van yet claim no income drives me crazy and it should be altered but it is not the same scenario. You are working from Canada for a US company thus no need for H-1B but the tax implications are very different then someone spending most of their time in a 3rd country where they make all there money.

 

[HamiltonApplicant]

Guys,
Like the question says, is there a way? I would prefer to ditch H1b and work directly with a US employer. One idea was to start an LLC or Inc. company, which would do business with US employer? Has anyone researched about this approach?

If not, can we realistically continue working on H1b for long time? I know paying taxes in both countries could be a hassle, but I would rather continue working until I find something concrete in Canada.

This depends entirely on your company, here are some suggestions:

• Work remotely from home office
• Commute regularly if you company is located within daily commute distance
• Other possibility is to persuade you company to get payroll processing company to pay you in Canada.

If you are required to be in the US physically for long periods of time, your residency requirements in Canada might hassle you; But for now, you try any of the above routes for next 2-2.5 years...