Working on W2 with US Employer, living in Canada

[rj16]

I’m currently in the US on H1b and planning to land in Canada in near future. I want to continue working for US employer (I’m 100% remote) but ideally don’t want to go through H1b Amendment for change of work location etc.

Can I work on my employers’ (or another employers’) W2 without maintaining H1b status?

Another option would be to work as a contractor (LLC registered in Canada) with a Corp to Corp like arrangement. I don’t know if the employer would go for that due to different country and tax burden. Has anyone done this?

 

[lampbreaker]

Since you won't be physically present in the US, you don't need any H1B amendment (or even H1B petition for that matter).

From tax point of view, your employer will withhold US taxes. You will be responsible for Canadian taxes. It will be better if they can employ you as independent contractor and not withhold any taxes. Then, you can simply file a Canadian return and pay taxes to Canada directly. Seek advice from a tax consultant.

 

[rj16]

Since you won't be physically present in the US, you don't need any H1B amendment (or even H1B petition for that matter).

From tax point of view, your employer will withhold US taxes. You will be responsible for Canadian taxes. It will be better if they can employ you as independent contractor and not withhold any taxes. Then, you can simply file a Canadian return and pay taxes to Canada directly. Seek advice from a tax consultant.

Thanks. So it seems like all the discussion I see about maintaining H1b in Canada is only valid if you need to travel to the US, however frequently. If I don't travel to US, I don't need H1b.

As an independent contractor, do I need to pay US taxes? I think your answer says that is the case, but just want to make sure.

I'm looking to get advice from a tax consultant. Is there a reputable site/source that can answer questions for both countries? I would also need to figure out how to manage finances in the US as well.

 

[lampbreaker]

I think if you are living in Canada and working in Canada (for a US company) as an independent contractor, then you don't need to pay US taxes.

 

[rj16]

Thanks for confirmation. I just read my message again and it wasn't very clear - I am looking for a referral for a reputed tax consultant who deals with both US and Canada tax issues. Let me know if you know someone you trust.

 

[migo80]

Thanks for confirmation. I just read my message again and it wasn't very clear - I am looking for a referral for a reputed tax consultant who deals with both US and Canada tax issues. Let me know if you know someone you trust.

Hello ,

I am curious to know what you have eventually figured out. I am probably going to be in the same boat as you in a few months. Any tips/guidance would be really helpful. Thanks!

 

[swan0206]

Thanks for confirmation. I just read my message again and it wasn't very clear - I am looking for a referral for a reputed tax consultant who deals with both US and Canada tax issues. Let me know if you know someone you trust.

hi, did you find any good tax consultants??

 

[shayusuf247]

Since you won't be physically present in the US, you don't need any H1B amendment (or even H1B petition for that matter).

From tax point of view, your employer will withhold US taxes. You will be responsible for Canadian taxes. It will be better if they can employ you as independent contractor and not withhold any taxes. Then, you can simply file a Canadian return and pay taxes to Canada directly. Seek advice from a tax consultant.

Agree, this is most workable solution

 

[nitinj025]

Did you find a solution for this?