What type of visa does a Canadian company need for it's employees when
the Canadian company is under contract to a USA based company and some
of the work is done in Canada (system development) and some is done in
the USA (system installation and customer training)?
I'm assuming that the Canadian employee's would need to track their time
'worked' in the USA and file a USA Federal return. If they work in
several different states, I furthermore assume that means filing
multiple State returns as well.
Please advise the best way to setup such a consulting / professional
services operation in Canada.
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david ingram replies:
There are two different answers.
1. If the company is a genuine Canadian Company with Canadian owners and the
employees are employees producing the product in Canada then NO paper visa
is required for "any" employee to got to the US to supply, install or update
a computer program or a stationary engine or any other piece of equipment or
system that is not part of the building construction industry.
For as long as the ORIGINAL WARRANTY period, any Canadian employee can go to
the US to look after the program, the machine or system while under the
original warranty. No extensions of the original warranty apply.
Any employee going south to work on the project should carry a copy of the
original contract, sales agreement and warranty with them. They will be
admitted to the USA under a B-1 Business Visitor status. Goto www.centa.com
and read the "Entering the USA" section - in box on right hand side.
2. If the Canadian Company is a wholly owned subsidiary of an American
company, the employees going the US should likely have an L1, H1, H2 or TN
visa.
I will admit that 19 times out of 20, or even 99 out of 100, a Canadian
Employee of a wholly owned subsidiary would also get into the USA under B
status and it might even be legal. However, if looked at closely, the
Homeland Security agent would likely look at it as a violation of the intent
and not allow the Canadian into the USA.
I would be interested in the opinion of any others at this point. Always
ready to admit that I can learn something.
Send other opinions to me at
taxman at centa.com
david
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