Setting up corporation for contract work in US

[Nick1233]

Thank you Nick for your prompt response,
I agree that being an employee would make situation a lot more complex, and difficult to handle.
I have read in the forums about Professional Employer Organizations that can handle the employee situation, do you have by any chance any comment on this?
articles like : https://hcbtax.com/2019/08/29/canadian-resident-working-for-a-u-s-company/
or this : https://canadianpayrollservices.com/legalities-hiring-remote-canadian-workers-us-companies/

Sorry no idea. May be try contacting them and ask for advise? but at the end of the day, your potential employer needs to be fine with that.
For instance, who is on the hook to pay for their services? Would that affect your pay etc?

FWIF, given cross country relationalship, it is really strange why they are insisting on full time. Typically, full time is preferred to reduce the additional cost associated with contracting. What ever route you take, make sure to get the right or above market pay. One of the great advantages of being a PR

 

[adlerjohn557]

Sorry no idea. May be try contacting them and ask for advise? but at the end of the day, your potential employer needs to be fine with that.
For instance, who is on the hook to pay for their services? Would that affect your pay etc?

FWIF, given cross country relationalship, it is really strange why they are insisting on full time. Typically, full time is preferred to reduce the additional cost associated with contracting. What ever route you take, make sure to get the right or above market pay. One of the great advantages of being a PR

Thanks for your advice

 

[swan0206]

CRA doesn't care as long as follow all laws and don't try to under cut on taxes like trying income-split, fake business expenses etc.

Irrespective of full time or contractor, some one has to run your payroll and deduct CPP, taxes etc at source before you get paid. In case of contracting, the company that you establish would do so. You would be the employee of your own company and your company has to follow all Canadian laws wrt inc and employing folks.

In case of full time option, your employer need to figure that out. This could be a challenge as they don't seem to have a branch in Canada. If they insist, let them figure it out. My guess, it would be a no go as Canadian laws would come in play and your employer's legal division will have to figure all that out even before offering you a job. Not to mention benefits would differ between US and Canada and would mean additional overhead for your employer.

Hi Nick, i am in same boat as john. I will be the only employee from my company to work from Canada probably in a month from now. I am not understanding your explanation of fulltime here in Mr.Johns context. My employer is the one who runs the payroll for me, but my client is different, so i am obviously a contractor right. I can deal with them accordingly? am i understanding this correct?

My employer doesnt provide me health insurance or any benifits(like leaves or paid time offs) nothing of that sort.

 

[Nick1233]

Hi Nick, i am in same boat as john. I will be the only employee from my company to work from Canada probably in a month from now. I am not understanding your explanation of fulltime here in Mr.Johns context. My employer is the one who runs the payroll for me, but my client is different, so i am obviously a contractor right. I can deal with them accordingly? am i understanding this correct?

My employer doesnt provide me health insurance or any benifits(like leaves or paid time offs) nothing of that sort.

If your employer runs payroll and deducts payroll tax and transfers that to CRA, you shouldn't have to do anything.

 

[swan0206]

If your employer runs payroll and deducts payroll tax and transfers that to CRA, you shouldn't have to do anything.

Thanks Nick

 

[Copingwithlife]

Hi Nick, i am in same boat as john. I will be the only employee from my company to work from Canada probably in a month from now. I am not understanding your explanation of fulltime here in Mr.Johns context. My employer is the one who runs the payroll for me, but my client is different, so i am obviously a contractor right. I can deal with them accordingly? am i understanding this correct?

My employer doesnt provide me health insurance or any benifits(like leaves or paid time offs) nothing of that sort.

Then you want to double check that your employer has a Business Number registered with the CRA. Nine digits ending in RP0001. That would be the only way they could remit the payroll remittances to the CRA for you as an employer

 

[swan0206]

Then you want to double check that your employer has a Business Number registered with the CRA. Nine digits ending in RP0001. That would be the only way they could remit the payroll remittances to the CRA for you as an employer

Sure Nick, i can check that with my employer. Thanks for that info

 

[su0du0tict]

While doing a Corp to Corp Agreement with USA to Canada ( Receiving party is in Canada) doing remote IT job, do we need to also obtain an EIN number in the USA. Or just submitting the W-8BEN-E to the US employer is fine so that he has that for reference and does not need to deduct taxes at source in USA.