Options for working for a US company in Canada

[krishere1982]

Hello all,

I have been offered a job by a US company. The hiring manager didn't have any problem with me working from Canada. But the company evaluated my request to work from Canada and has declined it mentioning that they can't let me work from Canada for US clients. The company is willing to do a H-1B transfer for me.

I am wanting to see if this route is feasible :
> Company does H-1B transfer.
> I open a TD bank account in US and have the company direct deposit paychecks to that account.***although I am not sure how the taxes will be calculated as I won't be living in US***
> I move to Canada and work from there.
> I think I can withdraw the money from the TD bank account in Canada.
> I will file Canadian (foreign income) and US tax returns.

Would the process that I mentioned above be legal? Does anyone has any experience doing something like this? Please share your opinions and/or experiences.

Thanks.

 

[canuck78]

Hello all,

I have been offered a job by a US company. The hiring manager didn't have any problem with me working from Canada. But the company evaluated my request to work from Canada and has declined it mentioning that they can't let me work from Canada for US clients. The company is willing to do a H-1B transfer for me.

I am wanting to see if this route is feasible :
> Company does H-1B transfer.
> I open a TD bank account in US and have the company direct deposit paychecks to that account.***although I am not sure how the taxes will be calculated as I won't be living in US***
> I move to Canada and work from there.
> I think I can withdraw the money from the TD bank account in Canada.
> I will file Canadian (foreign income) and US tax returns.

Would the process that I mentioned above be legal? Does anyone has any experience doing something like this? Please share your opinions and/or experiences.

Thanks.

H1B usually requires you to give your US residential address.

 

[rj16]

You need to be present in US to maintain H1b status. I doubt your company will be okay with you staying out of country for extended periods of time, while on H1b.

 

[krishere1982]

H1B usually requires you to give your US residential address.

You need to be present in US to maintain H1b status. I doubt your company will be okay with you staying out of country for extended periods of time, while on H1b.

Thanks. Yes, I think trying to be on H-1B without an US address won't work out.

I was looking into PEO/GEOs and in one article, they mention " It is best to have a third party run payroll for you in the country that you are actually working, and have the US employer funnel your salary to them. A GEO service can handle that for you in most countries by using a local employer of record to run payroll and withhold local taxes. The GEO becomes your ‘employer’ for administrative and legal purposes, while your true US employer continues to manage your remote work. "

Maybe I should talk to the US company to if they are willing to work with PEO/GEOs?

 

[lampbreaker]

There is mostly no problem from immigration perspective with what you are trying to do.

1. Your employer and the client may not be ok with it. You will need to convince them or move to Canada without their knowledge (risky and unethical)
2. Technically your employer has to withhold Canadian taxes and the employer portion of payroll taxes (Canadian equivalent of social security, medicare etc.) must go to Canada. When your employer creates the pay statement in US, they are paying US social security and medicare. There will be complications.
3. You will not be able to travel to the US on H1B visa if you travel for short trips. H1B is for working in US, not for short trips.

 

[krishere1982]

There is mostly no problem from immigration perspective with what you are trying to do.

1. Your employer and the client may not be ok with it. You will need to convince them or move to Canada without their knowledge (risky and unethical)
2. Technically your employer has to withhold Canadian taxes and the employer portion of payroll taxes (Canadian equivalent of social security, medicare etc.) must go to Canada. When your employer creates the pay statement in US, they are paying US social security and medicare. There will be complications.
3. You will not be able to travel to the US on H1B visa if you travel for short trips. H1B is for working in US, not for short trips.

Thanks for the inputs. I was not even considering anything on the lines of what you mentioned in 1. But 2 and 3 make sense. Does anyone have experience working with PEO/GEOs?