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Working for a US based company

Working for a US based company

Old Nov 23rd 2022, 9:40 pm
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Default Working for a US based company

Hi All,
I am in talks with a US company for a remote job. I will be based in Canada and working remotely. However the company wants to deduct all US tax etc as they would for their US based employees. I will be an employee of the company.
1. How do I go about taxes without becoming a US resident.
2. I will be based in Canada
3. Is it possible to get Social Security number without being in US.
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Old Nov 23rd 2022, 10:04 pm
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Default Re: Working for a US based company

In short, I don’t believe it’s possible. You can’t get an SSN (https://www.ssa.gov/ssnumber/ss5doc.htm) and you can’t elect to pay tax in a country you’re not tax resident in (if you could, Monaco or Dubai for me please!). You are tax resident in Canada I assume? So that’s where you’ll have to pay tax.

But if the company want to do this, I’d suggest they pay for some proper tax advice. I suspect they’ll be told ‘no’ and what they want isn’t possible, but they should be researching this really rather than you.

Good luck.
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Old Nov 24th 2022, 3:27 am
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Default Re: Working for a US based company

I don't think this is right. You should be taxed solely in Canada as that's where you're working. Maybe self-employed?, so you would be responsible for your taxes and other contributions. There should be no need for an American SSN.*
*You might need to get an ITIN (a 'SSN' like number that's purely for tax purposes), specifically if the employer needs to give you a W-2 at the end of the year to help you calculate your Canadian taxes.

Last edited by neill; Nov 24th 2022 at 3:36 am.
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Old Nov 24th 2022, 6:25 am
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Default Re: Working for a US based company

Originally Posted by christmasoompa
In short, I don’t believe it’s possible. You can’t get an SSN (https://www.ssa.gov/ssnumber/ss5doc.htm) and you can’t elect to pay tax in a country you’re not tax resident in (if you could, Monaco or Dubai for me please!). You are tax resident in Canada I assume? So that’s where you’ll have to pay tax.

But if the company want to do this, I’d suggest they pay for some proper tax advice. I suspect they’ll be told ‘no’ and what they want isn’t possible, but they should be researching this really rather than you.

Good luck.
Yes I am a tax resident of Canada and very much intends to pay taxes in Canada. The company doesn’t want to get involved with any tax issues and just want to deduct the US taxes as normal.
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Old Nov 24th 2022, 6:33 am
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Default Re: Working for a US based company

Originally Posted by neill
I don't think this is right. You should be taxed solely in Canada as that's where you're working. Maybe self-employed?, so you would be responsible for your taxes and other contributions. There should be no need for an American SSN.*
*You might need to get an ITIN (a 'SSN' like number that's purely for tax purposes), specifically if the employer needs to give you a W-2 at the end of the year to help you calculate your Canadian taxes.
Thank you. I will look into that.
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Old Nov 24th 2022, 2:17 pm
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Default Re: Working for a US based company

Originally Posted by Instantpot
Yes I am a tax resident of Canada and very much intends to pay taxes in Canada. The company doesn’t want to get involved with any tax issues and just want to deduct the US taxes as normal.
So if they don't want to get involved in tax issues (which they shouldn't anyway if you're not on the US payroll) then as per your previous thread, you'll need to be self employed and invoice them as such, then you sort your own taxes - Tax question
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Old Nov 24th 2022, 2:29 pm
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Default Re: Working for a US based company

They do not have to take out US taxes on your earnings. As mentioned, you are a resident of Canada, working from Canada. You will owe taxes to the CRA.

Your employer does not need to deduct US federal, state, city, county, taxes nor withholdings for social security as you are not eligible for SS as a non-resident, nor will you require US healthcare, and I don't believe you are eligible for a 401K savings plan.

Look up how to work for them as a contractor and what you need to do with CRA re your withholdings.
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Old Nov 25th 2022, 11:21 am
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Default Re: Working for a US based company

Originally Posted by Rete
They do not have to take out US taxes on your earnings. As mentioned, you are a resident of Canada, working from Canada. You will owe taxes to the CRA.

Your employer does not need to deduct US federal, state, city, county, taxes nor withholdings for social security as you are not eligible for SS as a non-resident, nor will you require US healthcare, and I don't believe you are eligible for a 401K savings plan.

Look up how to work for them as a contractor and what you need to do with CRA re your withholdings.
Thank you.
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Old Apr 21st 2023, 10:29 am
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Default Re: Working for a US based company

Originally Posted by Instantpot
Thank you.

How did you get on with this? I think I may be in the same position as yourself later in the year, based in Canada as a Contractor but working for a US based company.

Thanks
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Old Apr 21st 2023, 1:46 pm
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Default Re: Working for a US based company

Originally Posted by ribblerider
How did you get on with this? I think I may be in the same position as yourself later in the year, based in Canada as a Contractor but working for a US based company.

Thanks
I didn’t proceed with position again.
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Old Apr 21st 2023, 6:45 pm
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Thumbs up Re: Working for a US based company

Originally Posted by Instantpot
I didn’t proceed with position again.

No problems, thanks for the reply. 😁
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