Is it possible to live in Canada and work remotely for a US company under TN?

B

bottsteve

New Member
As the title states, I'm curious as to whether or not it is possible to work remotely for a US company under TN status as a Canadian (living in Canada, not US). There seems to be mixed responses as to whether or not this is feasible. There would be infrequent travel to the US for work-tangential team-building exercises and the occasional meeting, but not often at all if at all. I've been in the US under TN for the past six years and would like to return home, being paid into my US bank account if possible.

If this isn't feasible, I'd like to be able to provide my potential employer with reasonable alternatives that are hopefully as painless as TN. If it is feasible, my plan is to just have my US company pay into my US bank account under my SSN for the time being and wire money back to my Canadian bank account as needed. This seems very inefficient so if there are alternatives please let me know. Thank you!
 
You will not need TN if you live and work from Canada. TN is required only to work in the US. You might want to think of getting paid on 1099 - which will be more efficient. That way, you will contribute to CPP/Canadian taxes instead of paying US taxes and SS.
 
That sounds like an option to look into, I have some questions though:
1. Do I have to do something special in Canada to be eligible? Like do I have to incorporate myself as a legal entity?
2. While the TN isn't necessary or the most efficient, is it still possible, at least in the short term in the case that I might need to get something sorted out on the Canadian side, to obtain a TN and work through that?
 
You can work in on TN and still be paid as 1099. There is nothing special to do in canada. You can incorporate if you wish, but not needed.
 
@nelsona that's great. I think 1099 would be the most efficient route for sure but I have no experience contacting solo, also in my industry it's typically frowned upon and looks bad on a resume. For this reason I'd be more inclined to take the traditional TN/W2 route. While not as efficient, is it still possible to simply be hired on as an employee through W2 and love/work from Canada? I figure I would be paying federal taxes of course but not state, and I'd end up owing my Canadian taxes by the end of the year, but it's still a net gain.
 
No, you cannot be W2 employee while living and working in Canada. They must put you on a Cdn payroll. TN becomes unnecessary except for occasional visits to US, still paid through CDn payroll.
 
I worked on W2 while on TN Visa and then on H1B while in Canada(during covid times), nothing is stopping you from doing that till they are paying you in US bank. The only issue you will face is paying taxes. I paid very high taxes both in California and then in Ontario since you have to file local taxes even for your foreign / US income if you have over 182 days residency in Canada.
 
This is not accurate (COVID was a special situation, and CRA relaxed *some* but not all rules on this -- those temporary rules no longer apply.

If living and working in Canada -- your employer MUST set up a payroll that results in CPP and EI to be collected (either directly or through an agent), NOT US taxes. It has nothing to do with which bank your salary is put in.

This is an immigration forum. For more clarification on tax matters, please go to forums.serbinski.com.
 
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