Working Remotely in USA for Canadian Company

[AP530 0]

Hi,

I am a Canadian citizen, currently living in Canada working for a Canadian company. My husband is an American citizen and we are planning on applying for my green card but before we do I want to get a bit more information about what my work situation might look like.

Ideally I'd be able to live and work in the US remotely for my current employer (even if only temporarily until I could find a permanent US job), paid in CAD through a Canadian bank, but I want to know if there are any roadblocks to that before I proceed, assuming my green card gets approved. Two questions:
- Would I be subject to double taxation (Canadian and US taxes)?
- Would my employer have to do anything differently? (I'm hoping the answer to this one is No)

I have yet to discuss this with my employer but want to be able to answer questions they may have.

If anyone has been through this or knows the process please let me know.

Thank you

[Mike E 11,739]

18 minutes ago, AP530 said:

Hi,

I am a Canadian citizen, currently living in Canada working for a Canadian company. My husband is an American citizen and we are planning on applying for my green card but before we do I want to get a bit more information about what my work situation might look like.
 
- Would I be subject to double taxation (Canadian and US taxes)?

You will received a tax credit from IRS for any taxes you pay to Canada.  

18 minutes ago, AP530 said:

- Would my employer have to do anything differently? (I'm hoping the answer to this one is No)

No. 

[AP530 0]

Thank you for the quick reply!

 

Sorry, I don't know how to directly reply to your message, but here goes...

 

Quote

You will received a tax credit from IRS for any taxes you pay to Canada.

 

Thanks for the info.

 

Quote

Would my employer have to do anything differently? (I'm hoping the answer to this one is No)

No. 

Could you expand on that a bit, if you don't mind.  Is there a special/different tax treaty setup between Canada and US as opposed to the UK and US?  I was reading the answer to this question about the company having to file with the IRS and figured I would get a similar response to my question above, but I know that US and CA are very closely tied in many aspects, closer than US and UK I suppose.  I know my company had a one point filed taxes with the IRS as we do a lot of business in the states, but I believe they might have closed the US subsidiary in the last year or so, so I don't think that's an avenue I could go down should I continue to work remote.  I just want to know that my employer wouldn't have to change anything on their end, i.e. still pay me the same way, fill out the Canadian tax forms the same as they currently do, etc. as I feel this will give me a better argument for them letting me stay on while we get on our feet in the states.

 

Thanks for any info! 

[Mike E 11,739]

7 minutes ago, AP530 said:

  I just want to know that my employer wouldn't have to change anything on their end, i.e. still pay me the same way, fill out the Canadian tax forms the same as they currently do, etc. as I feel this will give me a better argument for them letting me stay on while we get on our feet in the states.

You are a Canadian citizen being paid by a Canadian company. 
 

Now it is quite possible the Canadian government surrendered Canada’s sovereignty to the USA on this matter but I am not aware of it.
 

 If you want plan convince your employer to continue to pay you while you live in then USA and they are reticent, quoting a post from me won’t convince them.  Instead you will need to hire a U.S. CPA or a Canadian Chartered Accountant or other credentialed person to write you a letter that states that what you want your employer to do is legal under the laws of Canada and the USA.  

[AP530 0]

38 minutes ago, Mike E said:

If you want plan convince your employer to continue to pay you while you live in then USA and they are reticent, quoting a post from me won’t convince them.  Instead you will need to hire a U.S. CPA or a Canadian Chartered Accountant or other credentialed person to write you a letter that states that what you want your employer to do is legal under the laws of Canada and the USA.  

Totally agree, this was to be my starting place.  I've already been in contact with an accountant that specializes in US/CA taxes, I just wanted to look here before paying their fee to see if anyone had experience with this.  Thanks for the advice!

[grant2 15]

On 8/24/2022 at 2:16 PM, AP530 said:

- Would I be subject to double taxation (Canadian and US taxes)?
- Would my employer have to do anything differently? (I'm hoping the answer to this one is No)

I have yet to discuss this with my employer but want to be able to answer questions they may have.

If anyone has been through this or knows the process please let me know.

1. If you reside in the USA while working for a Canadian company then:  yes, you must file tax returns in both countries.  (Canada for your canadian income, USA for your world income).

2. Probably not, but that's for your employer to figure out.

 

The big thing you need to be aware of:  you can't work for a canadian company while living in the USA until you get your worth authorization.  i.e., EAD or Green Card.   If your plan is to live in Canada until you get your green card, all clear.  If you plan to live in USA while waiting for your green card, then you would need to stop working, period.

[Redro 4,611]

On 8/24/2022 at 5:16 PM, AP530 said:

Hi,

I am a Canadian citizen, currently living in Canada working for a Canadian company. My husband is an American citizen and we are planning on applying for my green card but before we do I want to get a bit more information about what my work situation might look like.

Ideally I'd be able to live and work in the US remotely for my current employer (even if only temporarily until I could find a permanent US job), paid in CAD through a Canadian bank, but I want to know if there are any roadblocks to that before I proceed, assuming my green card gets approved. Two questions:
- Would I be subject to double taxation (Canadian and US taxes)?
- Would my employer have to do anything differently? (I'm hoping the answer to this one is No)

I have yet to discuss this with my employer but want to be able to answer questions they may have.

If anyone has been through this or knows the process please let me know.

Thank you

Have you started the process yet?

Currently the green card process takes about 1.5 to two years. 

When you arrive in the US you will be work authorized and can start working immediately. 

Depending on what type of work you do, you could start looking for a job before you move to the US. 

You are probably about a year out from talking to your job about moving to the US and working remotely. 

 

You can read this post for a little more information about your situation/future situation:

 

 

 

[AP530 0]

On 10/29/2022 at 8:30 AM, ROK2USA said:

Have you started the process yet?

Currently the green card process takes about 1.5 to two years. 

When you arrive in the US you will be work authorized and can start working immediately. 

Depending on what type of work you do, you could start looking for a job before you move to the US. 

You are probably about a year out from talking to your job about moving to the US and working remotely. 

 

 

 

Thank you for the information.  We have not started the process and due to unexpected circumstances, have put any plans to do so on hold.  When we do begin the process in the future I will reference this information.  Thank you!