US Citizen with Canadian PR, Working for US company (no presence in Canada)

[WineMaiden]

Hello,

How would the employee's taxes be setup if they work for a US company but live in Canada? Prior to Covid, crossing border to work in State of Washington. What are the scenarios? I know the US and Canada have an agreement so there isn't double taxation but not sure the guidelines of how to set this up.

Thank you~

 

[canuck78]

Hello,

How would the employee's taxes be setup if they work for a US company but live in Canada? Prior to Covid, crossing border to work in State of Washington. What are the scenarios? I know the US and Canada have an agreement so there isn't double taxation but not sure the guidelines of how to set this up.

Thank you~

Do they have a visa to work in the US and what type? What is your status in Canada. Will you be physically working in the US. Is your employer aware that you live in Canada.

 

[Jalex23]

Hello,

How would the employee's taxes be setup if they work for a US company but live in Canada? Prior to Covid, crossing border to work in State of Washington. What are the scenarios? I know the US and Canada have an agreement so there isn't double taxation but not sure the guidelines of how to set this up.

Thank you~

Where you live is irrelevant. Its a matter of where are you paid.... if you are paid in Canada you pay Canadian taxes, if you are paid in the USA then you pay USA taxes.

 

[armoured]

Hello,

How would the employee's taxes be setup if they work for a US company but live in Canada? Prior to Covid, crossing border to work in State of Washington. What are the scenarios? I know the US and Canada have an agreement so there isn't double taxation but not sure the guidelines of how to set this up.

Thank you~

If you are a PR and residing in Canada, you may he overthinking. You'll have to file in Canada as a resident on your worldwide income, you account for taxes withheld in USA, and you'll be filing in USA anyway.

If it's not clear you perhaps should just hire an accountant to help you file.

 

[chs]

I asked this exact question here; the long and short of it was that it was honestly too much of a headache for me to pursue (Skip to my post #10 on that thread to see what happened after I paid a lawyer for their opinion) - your risk and financial appetite may be different, but I found the inner workings of taxation to be too onerous for my liking. In essence, you will double-pay both countries throughout the year and then "claw back" the US taxes at the end of it. Painful, but doable.

As always, consult a tax lawyer if you are seriously considering this route - the last thing you need/want is to have anything that could put your eventual citizenship route at risk, if that's your desired end-state