Work in US for Canadian company

[sdhiman 0]

Hello everyone

To give you a quick background, I have Landed Immigrant status in Canada and I work for a Canadian company with a branch in US apart from other countries. When I move to US, I'll be working from home. I always thought the easiest way will be to offically transfer to the branch in US.

My question is if there is any advantage in not doing that and remain oficially the employee of branch in Canada and work from US? Will it help with taxes or is that just asking for trouble?

I have never considered this option until now and just need some clarification if this is an option to consider or not.

Thanks

[trailmix 77]

I personally don't see any benefit, especially if your wage is not changing.

Because you will now be paying for your own healthcare, it probably is not factually any cheaper - tax wise, however, the lower income tax rate will help offset the additional things you pay in the U.S.

You would also be treated as a non-resident of Canada - so at minimum your tax rate would be 25%.

It's probably not a good idea.

Also if you are paid in Canadian dollars you are at the mercy of the fluctuating exchange rate.

Edited February 19, 2010 by trailmix

[BriCar 0]

Yes the tax advantage is definitly in the US, a lot more deductions available, like your home mortgage interest for one.

Retirement savings like IRA's, 457's and 401k"s etc. if you max them out can get you down to a effective income tax bracket of 15%.

[zyggy 9]

I would agree that a transfer to the US branch is the better way to go.

[sdhiman 0]

Thanks for the replies everyone, I appreciate it. I did think that transferring to US is the best option but thought no harm in asking.