Remote full-time work experience outside of Canada while studying

[netxor]

Hi everyone,

I'm trying to collect puzzle pieces in my head according to these topics:

https://www.canadavisa.com/canada-immigration-discussion-board/threads/work-experience-while-studing.399930/page-4
https://www.canadavisa.com/canada-immigration-discussion-board/threads/work-experience-is-remote.458351/
https://www.canadavisa.com/canada-immigration-discussion-board/threads/remote-work-experience.428489/

In my case, I've been working as a full-time remote graphic designer for an American company for over 1 year now, However, I'm not able to provide any payslips since my employer and I don't pay taxes, he just pays by cash to my sister and she sends it via MoneyGram transfer money system. Therefore, I can provide the only extended reference letter from my employer with total hours of work and duties/responsibilities, and ultimately, proof of funds such as bank statement while applying to FSW (not a proof of transferring).

My questions are:

1) How does IRCC identify remote work experience whether it is full-time or freelance? I guess by employees duties/responsibilities and total hours in a year but I'm not sure.
2) I work at least 30 hours in a week while I go to school. I'm a 4th-year student (BSc). Should I prove that my working hours and credits in a semester (or weekly study hours) do not interfere with each other?
3) Is it enough to show reference letter from employer for IRCC to be counted as foreign work experience?

Thanks.

 

[jes_ON]

Are you studying in Canada on a study permit, and physically performing the work in Canada? (That's what I assumed, but you don't actually say it). If yes, I have some bad news -

Given that you are studying/residing in Canada, your work would be considered "in-Canada" work experience, regardless of whether you are employed or self-employed, and your employer/client is based outside of Canada. The determination of work location is based on where you physically perform the work. If you are a full-time student on a study permit, you cannot use this experience under EE. (Self-employment experience in Canada is also excluded).

The way you describe your payment and "pay no taxes" arrangements, it sounds like (a) you are self-employed, (b) you are working "under the table," and (c) are positioned to get into trouble with both the IRS and the CRA.

I hope that is not the case, and that you were just being brief with the details. If you are self-employed (freelance is self-employed) and working for an American company, there will be tax documents, and you will have to prepare and file returns with both the CRA and the IRS (assuming you are either a US Citizen/permanent resident).

And, depending on where you are physically performing the work (on campus or off), you may also be violating the terms of your study permit.

I suggest going to have a chat with someone at your International Student office, they will likely be able to get you sorted out, so that you may be eligible in the future. These kinds of mistakes are usually forgiven if you can show that you took steps to correct the situation after you learned of an error. After you graduate, you can get a PGWP and gain (legitimate) work experience in Canada and qualify for PR that way.

 

[netxor]

Are you studying in Canada on a study permit, and physically performing the work in Canada? (That's what I assumed, but you don't actually say it). If yes, I have some bad news -

Given that you are studying/residing in Canada, your work would be considered "in-Canada" work experience, regardless of whether you are employed or self-employed, and your employer/client is based outside of Canada. The determination of work location is based on where you physically perform the work. If you are a full-time student on a study permit, you cannot use this experience under EE. (Self-employment experience in Canada is also excluded).

The way you describe your payment and "pay no taxes" arrangements, it sounds like (a) you are self-employed, (b) you are working "under the table," and (c) are positioned to get into trouble with both the IRS and the CRA.

I hope that is not the case, and that you were just being brief with the details. If you are self-employed (freelance is self-employed) and working for an American company, there will be tax documents, and you will have to prepare and file returns with both the CRA and the IRS (assuming you are either a US Citizen/permanent resident).

And, depending on where you are physically performing the work (on campus or off), you may also be violating the terms of your study permit.

I suggest going to have a chat with someone at your International Student office, they will likely be able to get you sorted out, so that you may be eligible in the future. These kinds of mistakes are usually forgiven if you can show that you took steps to correct the situation after you learned of an error. After you graduate, you can get a PGWP and gain (legitimate) work experience in Canada and qualify for PR that way.

Thanks for replying. But I'm not physically in Canada and don't have a study permit in Canada, and never been to Canada. Moreover, physically I'm not in U.S as well. I live and go to school in my home country, but have been working for an American company for over 1 year full time as I mentioned before.

 

[dbss]

Hi everyone,

I'm trying to collect puzzle pieces in my head according to these topics:

https://www.canadavisa.com/canada-immigration-discussion-board/threads/work-experience-while-studing.399930/page-4
https://www.canadavisa.com/canada-immigration-discussion-board/threads/work-experience-is-remote.458351/
https://www.canadavisa.com/canada-immigration-discussion-board/threads/remote-work-experience.428489/

In my case, I've been working as a full-time remote graphic designer for an American company for over 1 year now, However, I'm not able to provide any payslips since my employer and I don't pay taxes, he just pays by cash to my sister and she sends it via MoneyGram transfer money system. Therefore, I can provide the only extended reference letter from my employer with total hours of work and duties/responsibilities, and ultimately, proof of funds such as bank statement while applying to FSW (not a proof of transferring).

My questions are:

1) How does IRCC identify remote work experience whether it is full-time or freelance? I guess by employees duties/responsibilities and total hours in a year but I'm not sure.
2) I work at least 30 hours in a week while I go to school. I'm a 4th-year student (BSc). Should I prove that my working hours and credits in a semester (or weekly study hours) do not interfere with each other?
3) Is it enough to show reference letter from employer for IRCC to be counted as foreign work experience?

Thanks.

1. Since the work was done in Canada, it is Canadian experience as stated above.
2. Immaterial.
3. No, let's say you were okay to work, you will still need taxes remitted. By not paying the taxes, you are breaking the tax laws in Canada for sure (not sure about the US) since Canada taxes on residency.

 

[netxor]

1. Since the work was done in Canada, it is Canadian experience as stated above.
2. Immaterial.
3. No, let's say you were okay to work, you will still need taxes remitted. By not paying the taxes, you are breaking the tax laws in Canada for sure (not sure about the US) since Canada taxes on residency.

Actually, I've never been to Canada. I've just replied same to jes_ON. I think I didn't explain my situation correctly, that's why you guys are confused

 

[jes_ON]

Thanks for replying. But I'm not physically in Canada and don't have a study permit in Canada, and never been to Canada. Moreover, physically I'm not in U.S as well. I live and go to school in my home country, but have been working for an American company for over 1 year full time as I mentioned before.

OK, so it is non-Canadian work experience, you are not a Canadian student - so YES you can use the work experience, and # of hours worked as a student are not relevant.

It still sounds like you are working as self-employed, but regardless - the American company must prepare a 1099 or 1099-MISC and send that to you each year. You can use that as proof of remuneration.

See the section on Proof of Work Experience here - there are instructions for self-employment.
https://www.canada.ca/en/immigration-refugees-citizenship/corporate/publications-manuals/operational-bulletins-manuals/permanent-residence/express-entry/applications-received-on-after-january-1-2016-completeness-check.html

 

[netxor]

OK, so it is non-Canadian work experience, you are not a Canadian student - so YES you can use the work experience, and # of hours worked as a student are not relevant.

It still sounds like you are working as self-employed, but regardless - the American company must prepare a 1099 or 1099-MISC and send that to you each year. You can use that as proof of remuneration.

See the section on Proof of Work Experience here - there are instructions for self-employment.
https://www.canada.ca/en/immigration-refugees-citizenship/corporate/publications-manuals/operational-bulletins-manuals/permanent-residence/express-entry/applications-received-on-after-january-1-2016-completeness-check.html

Thanks a lot.

I was wondering how they (IRCC) identify whether it is remote full time job or just freelance? In case if it is freelance - it goes like self-empoyment right? and In case if it is full time remote work - Do I have to provide some kind of tax (payslibs) to them?

As I said before I'm not able to show them that exact my employer has been transferring my salary to me, It does my sister who works in that company as well. If that is okay, I can prove that.

I usually work 4-10 hours in a day, so average should be at least 30 hours in a week, discuss with another co-workers about project and certain things, usually start to work before they wake up and keep working with them at the same time, often till they go home, so it is more evening-night work.

 

[jes_ON]

Thanks a lot.

I was wondering how they (IRCC) identify whether it is remote full time job or just freelance? In case if it is freelance - it goes like self-empoyment right? and In case if it is full time remote work - Do I have to provide some kind of tax (payslibs) to them?

full-time remote and free-lance are not opposites.

- IRCC does not care if it is onsite or remote, all that is required is that you are honest and able to document it.

- full-time is defined in contrast to part-time by # of hours worked per week. Fewer than 30 hours per week is part-time and must be pro-rated. 30 or more hours per week is simply "full time." If you are self-employed and invoicing the company, then you should have good records of hours (this can be a headache for people who work variable full and part-time hours).

- "freelance"/self-employment is contrasted with "employment." The difference is contractual and has major implications for the company. If you are employed, you need a letter of employment from your employer and supporting documents. If you are self-employed, you need letters from your client(s) and supporting documents (the company you work for is not legally your employer, but your client). If you claim to be "employed" remotely by a US company and fail to provide supporting documents, IRCC may reject the work experience and refuse your application.

Paystubs are not required, however, they can be a benefit in some cases. If you have the wage/remuneration statements from the USA, that will be enough.

Other supporting documents may be contracts, invoices, etc.

As I said before I'm not able to show them that exact my employer has been transferring my salary to me, It does my sister who works in that company as well. If that is okay, I can prove that.
IRCC does not care how salary/wages/earnings are transferred or where you receive it. They only care that you can document the amount you claim you are paid, and by whom it is paid. As stated before, you should get a 1099-MISC which will be appropriate documentation.
.

 

[netxor]

It still sounds like you are working as self-employed, but regardless - the American company must prepare a 1099 or 1099-MISC and send that to you each year. You can use that as proof of remuneration.

Hello,

I have a few more questions about 1099-MISC.

Since I am not a U.S. citizen and not physically there, am I eligible to get that form (1099)?
However, I have tax ID (SSN - Social Security Number) which obviously I don't use since I'm outside of U.S and I don't live permanently there.
Instead, I came across to an information that I have to fill up and set W-8BEN or get 1042-s form from my employer.

Can I get any of above appropriate forms by late days? I mean, I used to work in U.S. in 2014 and currently in the same job position for another company (remotely) since 2016 and still did not get any kind of forms. Is it fine provide to IRCC filled up forms by these days but by old information with late dates?

Thanks.

 

[jes_ON]

Hello,

I have a few more questions about 1099-MISC.

Since I am not a U.S. citizen and not physically there, am I eligible to get that form (1099)?
However, I have tax ID (SSN - Social Security Number) which obviously I don't use since I'm outside of U.S and I don't live permanently there.
Instead, I came across to an information that I have to fill up and set W-8BEN or get 1042-s form from my employer.

Can I get any of above appropriate forms by late days? I mean, I used to work in U.S. in 2014 and currently in the same job position for another company (remotely) since 2016 and still did not get any kind of forms. Is it fine provide to IRCC filled up forms by these days but by old information with late dates?

The story gets murkier... can you explain how you were working in the US in 2014? And for how long? Did you complete tax forms for that work?

As for your current situation - Please indicate whether you are employed or self-employed, the scenarios are different and I am not going to continue to explain both.

 

[netxor]

The story gets murkier... can you explain how you were working in the US in 2014? And for how long? Did you complete tax forms for that work?

As for your current situation - Please indicate whether you are employed or self-employed, the scenarios are different and I am not going to continue to explain both.

I used to live and work in US in 2014. I did not complete tax forms for one company and worked only for 4 months. But since nov 2016 I've been working for another company remotely from my home country and obviously, I don't need to complete tax form because I'm outside of US and not a citizen. But probably I need one of these W-8BEN or 1042-s.

 

[netxor]

The story gets murkier... can you explain how you were working in the US in 2014? And for how long? Did you complete tax forms for that work?

As for your current situation - Please indicate whether you are employed or self-employed, the scenarios are different and I am not going to continue to explain both.

Thanks for the link, I know I shouldn't work and not pay taxes, but anyway I am about to apply only by my current job where I work remotely and still can't understand which form I need to provide or fill up for my company

 

[jes_ON]

Thanks for the link, I know I shouldn't work and not pay taxes, but anyway I am about to apply only by my current job where I work remotely and still can't understand which form I need to provide or fill up for my company

"Your company" should have asked you to complete these forms. Beyond that, since you still haven't said if you are employed or self-employed, I don't know either. If you're really not sure, have a chat with your employer/client...

 

[netxor]

"Your company" should have asked you to complete these forms. Beyond that, since you still haven't said if you are employed or self-employed, I don't know either. If you're really not sure, have a chat with your employer/client...

My company did not ask me to complete these forms since Nov 2016.

According to IRS https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-defined

People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. However, whether these people are independent contractors or employees depends on the facts in each case. The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax.

If you are an independent contractor, you are self-employed. To find out what your tax obligations are, visit the Self-Employed Tax Center.

You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done). This applies even if you are given freedom of action. What matters is that the employer has the legal right to control the details of how the services are performed.

If an employer-employee relationship exists (regardless of what the relationship is called), you are not an independent contractor and your earnings are generally not subject to Self-Employment Tax.

I'm not an independent contractor (self-employed) because my payor (and other co-workers of our company) actually controls what should be done and how it has to be done, therefore, I think I am a regular employee who works remotely.

Moreover, I believe that I have to send form W8-Ben to let IRS know that I'm not the U.S. citizen who is located outside of the U.S. and then get 1042-s but still not sure.

 

[harris_monkey]

Hi,

Can anyone tell what happens in a scenario where you're in Canada, working for a Canadian company, but working remotely?

I'm currently working for a company based in Toronto, but it's all remote work because of COVID (and it might stay like that) and I'm thinking of changing cities for a few months as I don't need to be in the office.

If that considered to be OK and will it count towards my Canadian experience?

Thanks