Working for a US-based company in Canada as an American citizen

Expatriates Asked by smallpants on December 26, 2020

My SO and I are contemplating moving to Toronto soon (within the next year or two) and I was curious as to what the process/restrictions/tax liability would be for us.

I am currently a software engineer at a NYC based company and my SO would be a student, possibly at the University of Toronto if all works out. I’d like to continue working for this current company remotely from Toronto while she is in school, perhaps becoming permanent residents later.

Things I’ve explored so far:

  1. Began completion of the skilled worker application but not completed because we both need to take the English language test.
  2. It sounds like (from others’ experience) I may need to become a contractor similar to one of my coworkers who is Serbian.
  3. My salary in USD is more than enough to continue to support us both while she is in school.

Questions I still have:

  1. What are the tax implications of remaining an employee of a US company in Canada?
  2. What are the visa requirements for me as skilled worker?

P.S. I have explored similar questions but they frequently contain circumstances which differ greatly from mine e.g. different citizenship status, already a contractor etc.

One Answer

"What are the tax implications of remaining an employee of a US company in Canada?

If you become a tax resident of Canada then, as far as I am aware , you can not be employed by a US company. In very broad strokes, employee as a concept only works domestically in general everywhere. You'd need to become a contractor or you company would need a Canadian subsidiary or you could use a Global Employment Organization (GEO). Most of us in similar situations just become contractors.

Answered by chx on December 26, 2020

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