Hi,
I work as IT System Analyst. Basically I can perform a lot of work
remotly (thanks to the internet) but there are still time I need to go
physically on site and work there.
With that in mind, I am considering the following:
Be employed in the US by a US based company on a regular but part-time
basis (25-75% variable) on a TN visa (I understand that part-time in
not an issue, I'll have to take care to show I cover the bachelor's
degree in the correct field). I would receive a salary. I would work
as an employee for this company only when physically on the US land.
I would open my company in Canada and would have a contract with the
same US based company to provide services remotly (kind of
outsourcing, I would remotly install & manage systems), and would
charge under this contract for all the remote work I do when I am
outside the US land. I would mostly reverse all that contract money
into salary.
This should be a temporary setup, 1 to 2 years.
I am not trying to escape taxes, I know from following your excellent
posts that I will have to declare my US salary in the US (federal and
state) and as I keep house and family in Canada I will have to declare
here too and get credit for what's already paid in the US. I would
also declare in Canada for the salary I would make from my own
company.
The point I am trying to acheive is to still make money in Canada so I
still contribute / can benefit from healthcare and pension plan and so
on. If I am 100% paid as a US employed parson, I'll loose all of that.
Would this approach work? Any problem being both employed and
contractor of the same company? From a tax point of view? From an
immigration point of view?
Thank you very much for your assistance,
----------------------------------------------------------------------
david ingram replies:
I am not going to answer this question completely because I just do not have
time and it is the kind of question that should be a paid consultation.
However, there is nothing stopping your being paid as a contract consultant
without going on a US payroll.
AND, neither do you lose anything by going on the US payroll. Any state or
federal income tax, Medicare and Social Security taxes paid will be a credit
against your Canadian taxes on line 431. However, I would advise against
having a Canadian corporation. It will NOT save you 10 cents in tax, will
NOT protect you from any public liability if you have no other employees and
will only cost you more in legal and accounting and a lot in confusion.
That's free.
==========================
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