TN can work on 1099 ??

[SatyaGC]

TN can work on 1099 ??

 

[gunt]

yes

 

[Byteless]

Generally if its a 2nd TN. Can a border official ask you that will you work on 1099?

if this question asked, is it OK to say YES? as it will be part time?

 

[TheRealCanadian]

if this question asked, is it OK to say YES? as it will be part time?

Of course it's OK to say yes, for a full- or part-time job.

 

[nelsona]

... and even for 1st time TN

 

[sabih]

I read a post on dice forum by someone that TN visa holders are not allowed to obtain 1099 since it is strictly for W2. Could anyone eleborate if there is any reality behind it? Here is the said post:



Being a Canadian Citizen is your first challenge:

Self-employed professionals, including 1099 and incorporated independent contractors, are precluded from obtaining TN-1 status, and the INS has advised its field offices that the E-2 "treaty investor" classification may be the appropriate alternative for these types of Canadian professionals, http://www.grasmick.com/invest.htm

The average IC will not qualify for the E-2 Visa.

The TN is designed to create W2 employment, which ensures the IRS has taxes on income paid to (non-resident) foreigners deducted at source. My accountant did the same thing and originally encouraged me to work 1099 or corp-to-corp instead of W2. But in this case, the lawyer trumped the accountant.

The next thing you need to ensure is you obtain a CPT56 from Revenue Canada. You need to send it registered mail, with proof of delivery. This allows the US employer not to deduct Social Security and Medicare from your payroll, since you're not covered anyways and have coverage from Canada.

http://seeker.dice.com/olc/thread.jspa?threadID=657

 

[nelsona]

That thread is quite simply wrong, as evidenced by the dozens have people that have posted here working on 1099.
As long as each client is an individual sponsor, you are fine.

 

[TheRealCanadian]

I read a post on dice forum by someone that TN visa holders are not allowed to obtain 1099 since it is strictly for W2. Could anyone eleborate if there is any reality behind it?

The post you reference is wrong on several counts.

First, the TN prohibition on self-employment relates to who writes the letter for the TN. A self-employed individual seeking TC status under the old Canada-US Free Trade agreement could write his or her own TC letter, since he or she was the employer. This loophole has now been closed. What it means is that a self-employed person can still seek TN status, but the end client needs to write the TN letter or file the I-129.

Second, there is NO prohibition on being paid via 1099 on a TN. The poster is confusing this with the H-1, which does require a W-2 employee relationship.

 

[sabih]

Thanks for the clarification.

 

[nelsona]

The post you reference is wrong on several counts.

First, the TN prohibition on self-employment relates to who writes the letter for the TN. A self-employed individual seeking TC status under the old Canada-US Free Trade agreement could write his or her own TC letter, since he or she was the employer. This loophole has now been closed. What it means is that a self-employed person can still seek TN status, but the end client needs to write the TN letter or file the I-129.

Second, there is NO prohibition on being paid via 1099 on a TN. The poster is confusing this with the H-1, which does require a W-2 employee relationship.

Indeed, self-sponsorship is prohibited, not self-employment