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Working remotely from Canada in US company as Canadian PR

APPNOV2014NY

VIP Member
Nov 21, 2014
3,005
1,099
Hi All,

I read through this thread because i want to have a similar setup with my employer but I'm very confused. Can you please post your opinion on my case?
I work for a small consulting firm (based in TX) and mostly work from home (in Northeast, so they have setup my payroll for northeast) but sometimes travel for a week or 2 per month to different client locations. We are planning to move to Toronto in March and i want to continue working with them but my firm does not want to create any company/presence in Canada. They are saying i have 2 options:
1. I can be an independent contractor in Toronto and they pay me directly. I would need to take care of Canadian taxes, etc. and they are not clear on the requirements in Canada to work like a 1099 contractor (USA) so I would need to do some homework to see if this is possible on my side.
2. I work in a Professional Employer Organization in Canada and the company would contract with Akili

In both these options i don't get to continue my H1b and then travel to US would require a business visa which would be problematic since i can't really work on it.
Without setting up Canadian payroll can my company pay me at all if i live in Canada?

Thanks!
#1 I have similar arrangement with a US employer. I live in Canada and have filed W8BEN with them. They will deposit money in my US account without deducting any taxes and I will take care off my Canadian tax obligation.
 
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DEEPCUR

Champion Member
Apr 12, 2016
2,428
642
When you say..
USCIS has access to my entry and exit records. What is your reasoning behind that approval?

Yes they had records on Entry/Exit, But not on your Paystubs. A close friend & colleague... Our company told him not to work remotely & take Unpaid leave as he got 221G in his visa extension and had to stay more than a month ( Although Existing visa was still valid).
That must something to do with company policy, definitely not related to immigration.

By this reasoning everyone should go on unpaid leaves for every vacation because their payroll keeps running when they are in India. If you are going to say that vacation is different from working, I would ask how different it would be? People may be taking comp offs and may not necessarily applying leaves on the system, so there is no documentation all the time to prove that something is a vacation.

Also, is extremely common scenario these days that someone takes three weeks of leave and one week of working from India.. 9/10 I know do that. how does it matter if working is for one week or few months or few years?
 
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boatyyo

Star Member
Jan 11, 2017
75
15
#1 I have similar arrangement with a US employer. I live in Canada and have filed W8BEN with them. They will deposit money in my US account without deducting any taxes and I will take care off my Canadian tax obligation.
Thanks! Do you travel to US for work then? If you do, what visa do you use? Is your H1b and green card process still going on?
 

APPNOV2014NY

VIP Member
Nov 21, 2014
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Would you need to register your own company in Canada to get paid this way? Will your old company still have you in payroll or you would continue to work as contractor to them?
Did thorough research. No. I am not required to register company in Canada to get paid like this. It's a new company which I joined after moving to Canada and I am independent contractor for them.
 

DEEPCUR

Champion Member
Apr 12, 2016
2,428
642
Did thorough research. No. I am not required to register company in Canada to get paid like this. It's a new company which I joined after moving to Canada and I am independent contractor for them.
Cool... is it okay to keep the checking account without residing in US? Do banks allow to update Canadian address for the account?
 

boatyyo

Star Member
Jan 11, 2017
75
15
Did thorough research. No. I am not required to register company in Canada to get paid like this. It's a new company which I joined after moving to Canada and I am independent contractor for them.
So do they take a % cut of the total pay from your company in US? what are the requirements for them to show you as an employee?
 

APPNOV2014NY

VIP Member
Nov 21, 2014
3,005
1,099
Cool... is it okay to keep the checking account without residing in US? Do banks allow to update Canadian address for the account?
Yes. Absolutely. I had BOFA checking account active when I was in Canada on work permit and had no status in USA. BOFA even sent my debit/credit cards to my Canadian address. I have updated all the banks where I have US accounts ( checking, savings and credit cards) with my Canadian address.
 

APPNOV2014NY

VIP Member
Nov 21, 2014
3,005
1,099
So do they take a % cut of the total pay from your company in US? what are the requirements for them to show you as an employee?
I am not an employee. Just a contractor working in Canada for them and getting paid in USD.

No % cut. I quoted a $X/hr amount to company and they are paying me that amount. No additional layer in between.
 

DEEPCUR

Champion Member
Apr 12, 2016
2,428
642
I am not an employee. Just a contractor working in Canada for them and getting paid in USD.

No % cut. I quoted a $X/hr amount to company and they are paying me that amount. No additional layer in between.
Just curious.. did you apply for this job while you were in US or after moving to Canada? Was it advertised as a remote position in US and you convinced the company that you could do the work from Canada and get paid as contractor?
 

APPNOV2014NY

VIP Member
Nov 21, 2014
3,005
1,099
Just curious.. did you apply for this job while you were in US or after moving to Canada? Was it advertised as a remote position in US and you convinced the company that you could do the work from Canada and get paid as contractor?
My former employer closed one of the IT centers, laid off all the employees working in that center and outsourced work to my current employer. My current employer approached me and asked me if I would be interested in re-badging and visa transfer to them. I politely refused, told them that I am moving to Canada and I will be more than happy to work for them remotely as Independent Contractor at $X/hr for Y months. Current employer agreed.
 

thedippaar

Full Member
Oct 22, 2012
31
4
Folks - As PR when you reside in Canada and work (remotely/commute/telecommute) in US on H1B, how do you file taxes in US when you are below the 183 days? 1040 or 1040NR, which one should be used? When it comes to PR renewal or Citizenship, I think notice of assessment is required. And when you didn't meet 183 days in USA, will there be any affect on H1B renewals in future?
 
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harirajmohan

VIP Member
Mar 3, 2015
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Category........
Visa Office......
Sydney, NS
Job Offer........
Pre-Assessed..
App. Filed.......
29-May-2015
Doc's Request.
30-Dec-2015 ReminderEmail(PCCs, NewPassport via cse 31-Dec-2015)
Nomination.....
SK 22-Apr-2015
AOR Received.
11-Aug-2015
Med's Request
23-Dec-2015
Med's Done....
20-Jan-2016
Passport Req..
26-May-2016 (BGC In Progress 25-May-2016)
VISA ISSUED...
PP Reached Ottawa:27-May-2016, Received:10-Jun-2016
LANDED..........
PR: 09-Jul-2016, PR Card: 17-Aug-2016
Folks - As PR when you reside in Canada and work (remotely/commute/telecommute) in US on H1B, how do you file taxes in US when you are below the 183 days? 1040 or 1040NR, which one should be used? When it comes to PR renewal or Citizenship, I think notice of assessment is required. And when you didn't meet 183 days in USA, will there be any affect on H1B renewals in future?
PR renewal: Its just number of days present as i know that some are nonresident while maintaining the residency days.
Citizenship: To avoid issues, filing as resident helps in getting through without possible doubts/hassle/delay.
Also I dont think that one will be qualified to apply for citizenship without staying for more than 6 months for 1-2 years hence for those years one has to file as resident.
H1 renewal: Its nothing to do with how we file taxes alone but any fraud will anyway affect any type of visa, if found. But filing resident or nonresident doesnt matter as long as its legal/correct.

Just file based on your situation. Should have no issues either with NR or not.
https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test

My colleague files as NR for a decade+. No issues in visa renewal.
 

Mr.speaker

Member
Sep 22, 2018
15
1
Hello guys,

I’m a permanent resident in Canada and I didn’t visit US before.
I got job offer from US company to work remotely from Canada with canadian customer.
The company doesn't have any office or branch in Canada.
I will be direct employee,no contract.
The HR process will start next week, the hire manager told me every thing is OK, but I don't know the HR will accept the PR or not, because all the employ from Canada already have citizenship.
Please advice if I can work with US company with my PR as direct employ
Thanks