L2S working remotely for Canadian employer

[shaunca 0]

Hello everyone,

My spouse and I are both Canadian citizens, and we are on L1A and L2S visa in USA, just recently moved. Spouse is on L1A and I am on L2S visa.

Thing is, I currently work for a Canadian company here in Canada. I have my incorporation in Canada and I do consulting work, so my Canadian employer pays in Canada.

And being paid in Canadian funds into a Canadian bank account?

Am I allowed to work for Canadian company from USA, and getting paid in Canadian Dollars in Canadian bank?
Do I just need to fill in tax in both USA and Canada?

Thanks in advance for any help or guidance anyone has to offer.

[Mike E 11,723]

My read of https://www.uscis.gov/i-9-central/form-i-9-resources/handbook-for-employers-m-274/60-evidence-of-status-for-certain-categories/69-other-temporary-workers/692-l-nonimmigrant-status is that an L2S is authorized to work

[shaunca 0]

Thank you Mike E for your response

Yes I did get confirmation from CBP as well that I am eligible to work on L2S status. 

 

However, can I work for my Canadian employer and also get my pay deposited in my Canadian Account in Canadian dollars, as opposed to receiving pay in USA?

[Mike E 11,723]

5 hours ago, shaunca said:

 

 

However, can I work for my Canadian employer

yes: the U.S. does not care  

5 hours ago, shaunca said:

and also get my pay deposited in my Canadian Account in Canadian dollars, as opposed to receiving pay in USA?

yes: the U.S. does not care. However pay attention to FBAR

[shaunca 0]

19 minutes ago, Mike E said:

yes: the U.S. does not care  

yes: the U.S. does not care. However pay attention to FBAR

That is great to hear

 

So as long as I pay my taxes in USA and Canada, it should be okay if I get paid in Canada in Canadian dollars by my Canadian employer, right.

 

This is so helpful Mike E, thank you very much, really appreciate it. 

 

[Mike E 11,723]

1 hour ago, shaunca said:

So as long as I pay my taxes in USA and Canada, 

The U.S. gives you tax credit for foreign taxes. Thus you will not be double taxed. 

[shaunca 0]

That is great to hear.

I tried so much to find out about this situation "whether i would be able to work for my current canadian company employer, and get paid same way as I am getting paid in canada, in canadian bank in CAD currency" but was not able to find any info online or on USCIS site, so this is great info you provided.

 

Would it make any difference, if i am not full time employee of my canadian employer. I have incorporation in canada, and i provide consultancy services to canadian employer and get paid directly into my incorporate account? 

[Mike E 11,723]

20 minutes ago, shaunca said:

 

Would it make any difference, if i am not full time employee of my canadian employer. I have incorporation in canada, and i provide consultancy services to canadian employer and get paid directly into my incorporate account? 

I think you will need to hire  CPA.
 

The concern I have is that you are using a Canadian corporation you own to reduce your personal tax liability to CRA (which is fine) but will the IRS see this as a evasion of U.S. corporate income tax? It might because 100 percent of the operations of this Canadian corporation are in the U.S.  It appears the net corporate tax rate in Canada on a small busibess is 9 percent. In the U.S. it is 21 percent.

 

It looks unnecessarily complicated to me, and I suspect the bills from the CPA will out size whatever tax benefits you expect to gain.

Edited March 20, 2023 by Mike E

[shaunca 0]

Agreed.

 

I think if it was simple full time employee situation then it was okay but with incorporation involved, i think i will need to hire cross border specialized CPA

 

As long as it is legal for me to work from here and getting paid in my incorporation in canada in canadian funds/canadian bank, that is what i care about firstly. I do not want to break any law hence wanted to confirm if working for my canadian employer and getting paid in canadian bank/canadian dollars is fine.

 

secondly, i will have to figure out on the taxing situation with CPA