Remotely work for US employer from Canada

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wpower

New Member
Hi folks, under the current pandemic, more US employers are allowing new employees to remotely start working from Canada. I am wondering in this situation, do you need to get TN status in order to start the employment? Or do you only need to get TN status when you physically enter the US?

I found some posts here and elsewhere that seems to suggest TN is only needed if you work within the US, but not sure if I might misunderstood.

My new employer wants me to start working remotely as the office is not open anyways. If I don't have to be in TN status when starting work from Canada, is it still recommended I get it now rather than later? Any pros/cons? With either approach (apply now vs later), is there something that I need to be mindful of?

Thanks a lot!
 
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One thing I can think of is, if I don't get TN status, I won't get I-94, and won't get SSN, so can't get paid by the US employer. Is this correct?
 
Do you have a SSN from a pervious TN job? If so, that part is fine. You are only issued one SSN for your entire life.

Most employers use E-Verify and all US employers have you complete an I-9 verification on your first day on the job.
You need an I-94 number, passport number, full name, date of birth, etc to pass the E-Verify and complete I-9 verification.
So you, you need TN status to have the legal right to work in the US. But you are not in the US, so it is complicated.

You need to talk to the HR department. I was paid before I received my SSN, so it possible, but not sure how.
 
Thanks for the reply! This is my first TN so I don't have SSN yet. From your reply I guess I will proceed to apply for TN now.

But seems for folks who has a TN and it's going to expire, it's OK to continue to work for the current employer remotely from Canada even after TN expires? Just thinking the scenario that when somebody fails to renew TN due to immigration intent (renewed too many times, submited i-140) , seems there's a way to continue employment as long as employer agrees you to work remotely from Canada. Is this understanding correct?

Thanks again for the quick and informational response.
 
I understand employment verification, for the legal right to work in US, is only performed upon initial hiring. (within the first few days, usually the first day). So yes, I believe it possible to continue working remotely for your US employer in Canada after your TN expires.

US immigration law, IRS tax law, US employment law, SSN requirements, are all complex and the requirements may conflict with each other and cause a "gray" area in the law.

I recommend obtain TN status before quitting your current job because at some point in the future your employer will want to you move to the US. You cannot move to US without TN.

Does this future potential employer have a Canadian office with Canadian employees?
 
TN is only needed while physically in US. In order to be on payroll (W2) you need SSN and US address, and also valid US status to do E-Verify.

If you have never started work with the US company and do not intend to go to US in near future, you can't be on payroll so that leaves the independent contractor option only, this is also a hassle and need to be discussed with the company
 
You don't need a US address to be on payroll (eg a nurse living in Windsor can certainly be on W-2 payroll of a Detroit hospital), but unless you are physically working in US at least *some* time for your employer, you are creating a problem for payroll in that you would need a Cdn payroll for taxes.
 
I was told by the SSN authority that SSN is not needed to start working, and you can get it after you start. However, as many people indicated, the company needs to verify your I-94 on the first day. So probably still need to go through the border to get I-94.

I am just curious, when we apply the TN at the POE and then return to Canada immediately, do we get issued a I-94? If so, we can work remotely in Canada without the need to go through the border. That would be great to make US employment income while enjoying low expenses in Canada.

In that case, we can also consider getting SSN in the US side of the border some time later when the office is open.
 
When you apply for TN at POE and return to Canada, yes, you obtain I-94. You paper I-94 is essentially your proof of TN status.
You can also obtain your electronic I-94 online
https://i94.cbp.dhs.gov/I94/#/recent-search

As nelsona mentioned, if you are working for a US company in Canada, I believe your company would be required to deduct Canadian Taxes, to comply with Canadian laws. For a short time, a few weeks, you should be okay. But if you are talking months, I think it could get tricky.
 
SSN is not required on first day of work, if you never had it before it takes weeks to apply and receive. The issue is that your wage reporting is tied to SSN so you may not get paid until your SSN info arrives and then your employer backfills it.

As for immediate return to work in Canada, I don't think it's wise/easy to go that route. On day 1 of work you'll need to do E-Verify and if you're not physically in US at the time your I94 or US status is sort of null (the website will show no current I94 if you're outside US), so what would HR see in terms of work eligibility? Also on day 1, assuming you're on US payroll, your company will still withhold US federal and state tax (they likely will not know/care about Canadian tax withholding)

Immigration aside, there's a lot of tax and employment implications/consequences on both US/Canada sides.
 
jixca said:
SSN is not required on first day of work, if you never had it before it takes weeks to apply and receive. The issue is that your wage reporting is tied to SSN so you may not get paid until your SSN info arrives and then your employer backfills it.

As for immediate return to work in Canada, I don't think it's wise/easy to go that route. On day 1 of work you'll need to do E-Verify and if you're not physically in US at the time your I94 or US status is sort of null (the website will show no current I94 if you're outside US), so what would HR see in terms of work eligibility? Also on day 1, assuming you're on US payroll, your company will still withhold US federal and state tax (they likely will not know/care about Canadian tax withholding)

Immigration aside, there's a lot of tax and employment implications/consequences on both US/Canada sides.
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Thanks for the valuable input. I totally agree. The I94 is not just a piece of paper, but a record in the system, so we should be physically in the US at least on the first day when I94 is E-verified. Maybe consider taking advantage of the work from home mode later for a couple of weeks before companies reopen.
 
The TN I-94 is a multiple entry. So there is no issue with e-verify. Besides, if one is not in the US, one can hardly be thought to be working illegally. e-verify does not use the notoriously inaccurate i94 site.
 
Jumping in on this thread as I have a similar situation / question. I am a Canadian Citizen currently working in the US on a TN (architecture). My wife was recently accepted to a masters program at UBC, so we are looking to move back to Vancouver this fall. I'm wanting to continue working for my current employer but remotely from Canada. When I move back, does that cancel my TN as I'm no longer living in the US or can I keep my TN until it expires while working remotely from my US employer? I've also read that Canadians who work for US employers and are still considered an employee need to submit a W-8BEN form in order to avoid double taxes. I can't be that easy, can it?

And if I can keep my TN, will I be able to cross the border occasionally for meetings? And lastly, will I be able to renew my TN once it is up given that I am still working remotely from Canada for a US employer?
 
Your TN will remain valid until expiry or job ends, and it's probably best to keep (and renew) if you frequenty visit US for work. While B1 allows meetings and conference you can't work and be getting paid by employer during that time in the US.

For long term residency in canada while working still for US company, do additional research and speak to your HR on options. It can be rather complicated unless your firm is large enough to have prior experiences or has Canadian office. It's not so much about immigration laws but rather on the IRS tax and US/Canada employment laws.

https://jiahkimlaw.com/business/ultimate-guide-hiring-foreign-independent-contractor/
https://www.thebalance.com/us-withholding-for-canadian-independent-contractors-3193495
https://canadianpayrollservices.com/legalities-hiring-remote-canadian-workers-us-companies/
 
Hello,

just wondering , how much cash change we need to bring to the board to pay for the TN and I94?

Since All ssa offices are closed now, where can we get the SSN?

Thanks
 
SKRE said:
Hello,

just wondering , how much cash change we need to bring to the board to pay for the TN and I94?

Since All ssa offices are closed now, where can we get the SSN?

Thanks
Click to expand...
My research is US$60 in cash.

I called on SSN office, and the representative told me to call them first to book an appointment first. But I think the office would be reopen soon.
 
jixca said:
Your TN will remain valid until expiry or job ends, and it's probably best to keep (and renew) if you frequenty visit US for work. While B1 allows meetings and conference you can't work and be getting paid by employer during that time in the US.

For long term residency in canada while working still for US company, do additional research and speak to your HR on options. It can be rather complicated unless your firm is large enough to have prior experiences or has Canadian office. It's not so much about immigration laws but rather on the IRS tax and US/Canada employment laws.
Click to expand...

I'm only on a TN visa right now and wasn't planning on getting a B1. I guess my more specific question is can I cross the border on a bi-weekly basis to attend meetings with clients and go into the office to meet with staff on a TN while living in Canada?

As for taxes, we are a small design studio and I am in the process of trying to determine how that will all work. I had read that I could submit a W-8BEN which would avoid me getting taxed twice, as I'm still considered an employee with the firm and not a contractor.
 
People cross back and forth daily for work on TN, as long as your situation remains valid for TN admission there shouldn't be an issue when going to US. Keeping TN gives your greater freedom in US for the company compared to B1.

Long term remote work outside US is not relevant to this forum and should probably be in a separate category, tax or employment law wise. If you want to stay in Canada while work for US company there's only 2 options, either become self-employed independent contractor and do your own tax deduction (for CRA) or get your company to set up payroll office in Canada (or go thru 3rd party payroll office that takes a cut)

https://www.reddit.com/r/PersonalFinanceCanada/comments/h79xhf
 
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