working remotely from Canada while on H1B

[harirajmohan]

A slightly different question- Is it more expensive for companies to switch an employee to the Canadian payroll from a US payroll? My company told me *they* have to pay higher taxes for me and increases the employee cost. My company has offices in both countries.

I have a H1B and have a Canadian PR.

Why do you want to trouble your employer to change your payroll. All you need is money which you can transfer from USD whenever you need monthly.
Changing payroll to Canada has potential reduction in salary but not sure if it would happen for you but most of us have scale down salary(while comparing the USD salary). So just leave the payroll as it is and keep filing taxes in both countries(nothing much you need to do).

 

[owleroz]

Why do you want to trouble your employer to change your payroll. All you need is money which you can transfer from USD whenever you need monthly.
Changing payroll to Canada has potential reduction in salary but not sure if it would happen for you but most of us have scale down salary(while comparing the USD salary). So just leave the payroll as it is and keep filing taxes in both countries(nothing much you need to do).

I will find out if my employer is just willing to update my address to the Canadian address and keep me on US payroll on H1B. When you mention "pay taxes in both countries" - would this still be needed if my home address is changed to Canada (Tax residency guidelines state 183 days residency for tax purposes )? I can't open a consultancy firm as suggested in other threads since my employer may not be open to that option. Thank you!

 

[harirajmohan]

I will find out if my employer is just willing to update my address to the Canadian address and keep me on US payroll on H1B. When you mention "pay taxes in both countries" - would this still be needed if my home address is changed to Canada (Tax residency guidelines state 183 days residency for tax purposes )? I can't open a consultancy firm as suggested in other threads since my employer may not be open to that option. Thank you!

1. First tell on what you are trying to achieve. UNless you post on your confusion/clarification/requirement/thoughts, we cant really answer. So tell why you want canadian address in payslip or wanted canadian payroll?
2. Taxes as an individual: I thought you would be resident of Canada which means its more than 183 days. Check cra website to know more about the obligation as i dont know about partial residency.
Taxes are not based on the address and its based on residency hence check more like above at CRA.
Taxes as a company: I dont know much about it. You can open but you cant maintain H1 (and should be fulltime resident of Canada) as per my knowlege as you wont be paid in W2(if there is no W2 then there is no H1).

 

[owleroz]

1. First tell on what you are trying to achieve. UNless you post on your confusion/clarification/requirement/thoughts, we cant really answer. So tell why you want canadian address in payslip or wanted canadian payroll?
2. Taxes as an individual: I thought you would be resident of Canada which means its more than 183 days. Check cra website to know more about the obligation as i dont know about partial residency.
Taxes are not based on the address and its based on residency hence check more like above at CRA.
Taxes as a company: I dont know much about it. You can open but you cant maintain H1 (and should be fulltime resident of Canada) as per my knowlege as you wont be paid in W2(if there is no W2 then there is no H1).

1. As an H1B residing and working from Canada, do you provide your Canadian address to your US employer? I am trying to understand the steps to follow since this determines taxes on W-2.
2. Thank you for the clarification

 

[swan0206]

Why do you want to trouble your employer to change your payroll. All you need is money which you can transfer from USD whenever you need monthly.
Changing payroll to Canada has potential reduction in salary but not sure if it would happen for you but most of us have scale down salary(while comparing the USD salary). So just leave the payroll as it is and keep filing taxes in both countries(nothing much you need to do).

https://www.canadavisa.com/canada-immigration-discussion-board/threads/work-from-home-from-canada-h1b-till-august-2022-and-canada-pr-copr-valid-till-sept-2020.689478/page-2#post-8912159

Hi Hari, giving link of our previous discussion. i am little confused now seeing the communication here.

so we can still stay in Canada without changing the payroll address and continue paying taxes in both Canada and US? Then what is the address thats going to be on our W2 or paystubs? As there were discussions in the forum where it said we cannot give a US address on payroll unless we are staying in US. How does this work?

 

[harirajmohan]

As an H1B residing and working from Canada, do you provide your Canadian address to your US employer? I am trying to understand the steps to follow since this determines taxes on W-2.

Address in payroll doesnt determine taxes.
if you earn in USD and reside in Canada then you need to pay taxes in US and then in Canada.
If you earn in CAD and reside in Canada then you need to pay taxes in Canada.

 

[harirajmohan]

1. so we can still stay in Canada without changing the payroll address and continue paying taxes in both Canada and US?
2. Then what is the address thats going to be on our W2 or paystubs?
3. As there were discussions in the forum where it said we cannot give a US address on payroll unless we are staying in US. How does this work?

1. Yes.
2. Whatever you have currently or whatever you gave last time to your employer. It doesnt matter as they will anyway deduct necessary taxes in US hence you will have to file returns in US and then have to do it in Canada(since you are Canadian resident).
3. Some HR team doesnt accept or their payroll software doesnt accept canadian address. I have canadian address for years in my payslip and W2. And we can give US address too. Point is that it doesnt matter for tax purpose.

 

[swan0206]

1. Yes.
2. Whatever you have currently or whatever you gave last time to your employer. It doesnt matter as they will anyway deduct necessary taxes in US hence you will have to file returns in US and then have to do it in Canada(since you are Canadian resident).
3. Some HR team doesnt accept or their payroll software doesnt accept canadian address. I have canadian address for years in my payslip and W2. And we can give US address too. Point is that it doesnt matter for tax purpose.

I got it now. So, i will be a resident of Canada, working for a US company. I can still have US address for my payroll(paying taxes in US and Canada). My future applications either in Canada or US doesnt effect. I feel relieved now.

When you payroll software, was it ADP. my company uses ADP.is it same for you too?(if you dont mind telling).

Seeing all those discussion, its incorrect/illegal to give US address when you actually stay in Canada , i was worried.

 

[DEEPCUR]

I got it now. So, i will be a resident of Canada, working for a US company. I can still have US address for my payroll(paying taxes in US and Canada). My future applications either in Canada or US doesnt effect. I feel relieved now.

When you payroll software, was it ADP. my company uses ADP.is it same for you too?(if you dont mind telling).

Seeing all those discussion, its incorrect/illegal to give US address when you actually stay in Canada , i was worried.

You just give the address wherever you will be staying when you come to US for work.. it could be friend's address or shared accommodation or anything that's close to your workplace, if you know what I mean. Don't attempt to give Canadian address even if your system lets you do that as your workplace is not close to border. If you do that, address will show up in your payslips and when future H1 extensions are applied, USCIS will issue RFE it as the address is not within a commutable distance from the work location. H1 rules require the residence address to be within 50 miles from their work location. It is not applicable when you live in Canada, but applicable whenever you enter US to work.

Don't sweat much on taxes.. taxes go by the place of employment and your employer will deduct it only based on your office location regardless of whatever address you provide. you can take care of cross border filing during year end.

 

[swan0206]

You just give the address wherever you will be staying when you come to US for work.. it could be friend's address or shared accommodation or anything that's close to your workplace, if you know what I mean. Don't attempt to give Canadian address even if your system lets you do that as your workplace is not close to border. If you do that, address will show up in your payslips and when future H1 extensions are applied, USCIS will issue RFE it as the address is not within a commutable distance from the work location. H1 rules require the residence address to be within 50 miles from their work location. It is not applicable when you live in Canada, but applicable whenever you enter US to work.

Don't sweat much on taxes.. taxes go by the place of employment and your employer will deduct it only based on your office location regardless of whatever address you provide. you can take care of cross border filing during year end.

Cool. Thanks a bunch Deep. I will give my friend's address which is closer to my workplace and i will let my employer know that i will be working from Canada so that i am good to go.

 

[Guokryou]

I have the similar situation, but the company only allows me to work in Canada for a calendar 60 days.
I’m a Canadian PR, I really want to work remotely in Canada. Is it possible that I work in Canada without notifying my employer?

 

[DEEPCUR]

I have the similar situation, but the company only allows me to work in Canada for a calendar 60 days.
I’m a Canadian PR, I really want to work remotely in Canada. Is it possible that I work in Canada without notifying my employer?

Not a good idea when they have a specific policy on how much time you could work from outside US. Best thing is you could request for filing an amendment to Detroit or Buffalo and work from there.

 

[harirajmohan]

I have the similar situation, but the company only allows me to work in Canada for a calendar 60 days.
I’m a Canadian PR, I really want to work remotely in Canada. Is it possible that I work in Canada without notifying my employer?

Is your company too far from the border?
its easier to get the residency accumulated with US job if you shift your job to border city. Its still not guaranteed that you would be approved to commute daily as some teams/managers still dont agree. So before you take up new job, you should tell that you would be commuting from Canada to make sure you are not surprised with same problem even with new job.

 

[zwang303]

Not a good idea when they have a specific policy on how much time you could work from outside US. Best thing is you could request for filing an amendment to Detroit or Buffalo and work from there.

Sounds like for Canadian PR who wants to work in US but companies have such policies, the maybe only option is to work in the US and live in Canada after work, correct?

 

[Takita]

My H-1B renewal has been approved but the visa stamping process make take a few months. Is it possible to work remotely from Canada on an approved I-129 but an expired visa stamp? I know that the visa stamp is required only for entry purposes but I am wondering if anyone can share experiences with their company HR on this matter. Thanks!

would you mind sharing what did you end up doing?

p.s. I'm exactly in same situation now.