Working for a US based company
#1
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Joined: Jan 2018
Posts: 63
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.
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.
#2
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.
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.
#3
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Joined: Dec 2005
Location: Colorado Springs
Posts: 1,214
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.
*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.
#4
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Thread Starter
Joined: Jan 2018
Posts: 63
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.
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.
#5
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Thread Starter
Joined: Jan 2018
Posts: 63
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.
*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.
#6
Re: Working for a US based company
#7
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.
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.
#8
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Thread Starter
Joined: Jan 2018
Posts: 63
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.
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.
#9
#10
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