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Working for US company remotely from Canada

manche585

Member
Mar 24, 2015
15
0
I am a Canadian PR and have an H1B visa in the US. I am currently working in the US for an American company. I am planning to move to Canada, but want to continue working for the company, but remotely. The company is willing to make this work.

Does anyone have any experience with this? Can they continue to pay me in the US or do they have to set something up in Canada?
 

torontosm

Champion Member
Apr 3, 2013
1,676
261
manche585 said:
I am a Canadian PR and have an H1B visa in the US. I am currently working in the US for an American company. I am planning to move to Canada, but want to continue working for the company, but remotely. The company is willing to make this work.

Does anyone have any experience with this? Can they continue to pay me in the US or do they have to set something up in Canada?
Does the company have any offices or operations in Canada? If not, you can work as a consultant for them and they would not have to deal with the CPP, EI and other deductions. If you incorporate a business in Canada to accept the assignment, it would work out even better for you as you would be taxed at a lower rate and be able to claim more deductions.
 
Feb 22, 2016
1
0
You really need more information to answer these questions. Usually the company does what they are going to do, and then you need to find out the best way to reduce the taxes.

As mentioned, while they would not have to deal with the CPP/EI, your contributions will double as a consultant, so that's not a good thing since you will be paying both portions. Yes, you will be able to claim deductions, but not everyone has a lot of deductions, so it depends on your income, personal situation, and expenses directly related to the business to see if you will come out ahead.

Contractors have most of the same deductions available to corporations, so the question is whether it will be worth the incorporation fees, and fees in excess of $1000 per year to maintain it, in addition to your personal return. In the end your corporation has to pay you as either an employee, through dividends, or a consultant? It really only helps if you are planning on keeping lots of your pay in the corporation, or have a very large income. The benefit also varies according to province.

Only US citizens and green card holders are required to pay tax on income earned outside the USA. So, it is likely that you can resolve yourself of US tax and filing requirements once your move to Canada. That might be a large benefit, depending on your intentions later in life.
 

milo2015

Star Member
Dec 24, 2014
198
6
Calgary, Alberta,Canada
i was looking CRA website and if i am not wrong for some provinces to qualify for lower tax rates only incorporated is not enough but having 2 x employees under that inc and some other requirements.

is there a place /blog which deals with taxation of Contractors working from Canada remotely for USA companies.
Many tax specialist does not seems to know many things and one should learn in order to have very technical discussion with accountant instead of playing dumb.