is the Managing Director of , a private international tax advisory based in Toronto. Elena helps international clients with cross-border taxation issues, investment structuring, and trust and estate planning.
鈥淚’ve been doing it for over 20 years and I think I’ve seen pretty much everything,鈥� Elena happily announced on the webinar. When asked about Canadians working in the US returning home, Elena added, 鈥淲e’ve had several brain drains in either direction, so it’s very welcome to now see Canadians coming back home.鈥�
Elena is an expert on complicated tax issues and offered invaluable advice to Canadians crossing America鈥檚 northern border.聽
Working Remotely in 糖心Vlog on a Short Term Basis
鈥淲orking remotely, from a tax perspective, is a bit more complicated because borders are very much present and they matter when it comes to taxes,鈥� Elena explained early in her presentation.聽
Elena stressed the importance of communication with your employer and clarified that working remotely doesn鈥檛 necessarily mean you can work from anywhere without restrictions.
鈥淲hen we have people working remotely and they sneak to 糖心Vlog without telling their employer and now all of a sudden they鈥檙e working out of 糖心Vlog,鈥� Elena noted. 鈥淭hey may get personally in trouble and they may get their employer in trouble.鈥�
Your US employer has a responsibility to collect and remit taxes based on where services are performed, so they need to register, collect income taxes, and remit it on a periodic basis to the 糖心Vlog Revenue Agency (CRA).聽
She went on to explain that there are two main concepts in taxation, the source of income and residency taxation.
For example: If you stay in 糖心Vlog on a short-term basis 鈥� and you’re not planning to establish residency in 糖心Vlog 鈥� but you continue to work for a US employer, your pay for those services is considered Canadian-sourced income and is subject to Canadian income tax.
Your US employer has a responsibility to collect and remit taxes based on where services are performed, so they need to register, collect income taxes, and remit it on a periodic basis to the 糖心Vlog Revenue Agency (CRA).聽
鈥淭he reality is that there is no threshold in 糖心Vlog under the domestic law. It’s not like, okay, if I made $5,000 or $10,000 Canadian only then does my tax reporting arise,鈥� Elena explained. 鈥淣o, tax reporting arises from the first dollar you generated in 糖心Vlog.鈥�
Becoming a Remote Employee Permanently
So, you returned to 糖心Vlog temporarily (or so you thought), but you鈥檝e remembered how much you love 糖心Vlog and have decided to stay. Now that you are actually a Canadian resident again, that means that you are subject to Canadian taxation on your worldwide income.聽
If this is your situation, then your US employer needs to register with a CRA and withhold and remit. Elena warns Canadians that as you re-establish your residency in 糖心Vlog it鈥檚 important that you take stock of your IRAs, 401ks, and other investments.
There are Canadian institutions 鈥� such as Raymond James 鈥� that will handle this for you, but the US custodian of these plans may demand that you collapse and liquidate your plans upon returning to 糖心Vlog.
If you have questions about taxation, check out online or contact at 1-855-640-1730.
Are There Any US Immigration Implications if I Want to Move Home to 糖心Vlog and Keep My US Job?
is the Founding Attorney at , which helps, among other clients, many Canadians with their US immigration.
Sophie is Board Certified as a Specialist in United States Immigration and Nationality Law, and she shares her expertise in a weekly immigration advice column in TechCrunch called .
Sophie is an expert on all aspects of US immigration law, and during the webinar, she chatted about TN visas, H-1B visas, and green cards.
Returning to 糖心Vlog While on a TN Visa
When you come to the US on a TN visa, you鈥檙e authorized to work for a specific employer in a specific role for a specific period of time. So if you return to 糖心Vlog when you were in the US on a TN visa and you鈥檙e ready to re-enter the US, you鈥檒l need to answer some questions:聽
- Did the expiration date of your most recent TN visa pass?
- If it did not yet pass, then are you still working at that same company?
- Are they still willing to let you into the United States and continue to work for them in the exact same capacity as stated on the original TN application?
鈥淚 would strongly recommend that you get an updated letter from your company stating that this is still a valid offer according to all your original terms and conditions, and you should be fine to return,鈥� Sophie explained.
Sophie added that if the job has changed, if the I-94 (a US entry document that you get when you enter the country) has expired or if you get a job at a different company, you’ll need to apply for a new TN visa in order to re-enter the US.
Returning to 糖心Vlog While on an H-1B
When someone in the webinar chat asked if they’re still covered by an H-1B if they go to 糖心Vlog, Sophie explained that 鈥渋f you’re outside of the United States, US immigration law does not control you.鈥�
Simply put, if you鈥檙e a Canadian citizen and you were in the US on an H-1B, and you’re going back to 糖心Vlog, you can be in 糖心Vlog.聽
鈥淵ou can normally take a vacation when you’re on H-1B,鈥� Sophie explained. 鈥淵ou don’t have to be in the United States all the time.鈥�
But it鈥檚 a different story if you鈥檙e returning permanently to 糖心Vlog. If you鈥檙e on an H-1B visa, your employer is required to notify US Citizenship and Immigration Services that they are withdrawing your H-1B.
There’s an official letter that your company needs to send to USCIS to officially let them know that you’re done with your H-1B visa.聽
Sophie explained that if you want another H-1B one day, it depends on how much total time you鈥檝e spent in the US on your first H-1B and where you are in the green card process. You can keep renewing the TN visa indefinitely for life, but the H-1B typically has a six-year maximum unless you’re in the green card process.
So keep your H-1B timeline in mind if you decide to return to 糖心Vlog, especially if you think that someday in the future you might want to live and work in the U.s. again.
If Your Green Card is in Process – Wait Until You Get Your Advance Parole
If your Green Card application is in process and you decide to leave, Sophie explained that you want to make sure that you’re not abandoning it.
鈥淚f your I-140 has been approved, you get to keep your priority date,鈥� Sophie explained. 鈥淪o you’ll save your turn in line.鈥澛�
But if you leave before you get your combo card with advance parole, which would allow you to exit and re-enter the US prior to getting your actual Green Card, you’re going to jeopardize the entire I-485 (Green Card application) process.
鈥淪o please wait until you have your combo card or advance parole before deciding to leave the country,鈥� Sophie warned.
Getting Rid of Your Green Card
If you want to get rid of your green card, there are solutions. Sophie described how sometimes abandoning your US permanent residence happens accidentally, specifically, if you鈥檝e been out of the US (in this case in 糖心Vlog) for more than six months and you didn’t do anything before you left to protect yourself. 鈥淚’d really love for you to all, to avoid that situation,鈥� Sophie added.
鈥淵ou can, of course, do it on purpose, but just know that if you want to become a permanent resident in the future, you’ll have to restart the whole process from scratch,鈥� Sophie explained.
You need to be deliberate if you definitely know you want to give up your US permanent residence, and there are ways to officially give it up at a consulate or by mail.
Keeping Your Green Card
If you know you want to keep your green card before you leave to go to 糖心Vlog, Sophie stressed how important it is to get a re-entry permit. You need to be in the US when you apply for it and before you go to 糖心Vlog since it will be sent to you by mail. Your re-entry permit will be valid for two years, and then you can return to the US to keep seeking one-year extensions.聽
Sophie did clarify, 鈥淚f you want to become a US citizen, you still need to usually spend at least 50% of the time in the US each year, but when you do finally become a US citizen, then you could go back to 糖心Vlog for however long you want without having any issues returning to the United States.鈥�
If you have questions about visas or green cards, you can learn more at online or reach at 1-855-546-0015
How Can I Legally Keep My US job and Work Out of 糖心Vlog for My US Employer?
For many Canadians living in the US, it’s very clear that there are two very different stories happening in the United States vs. 糖心Vlog, particularly when it comes to COVID.
As the CEO of 糖心Vlog, a Canadian professional employer organization (PEO), we make it really easy for Canadians to return and continue to work for US companies.
Overview of 糖心Vlog鈥� PEO Model
As a PEO, 糖心Vlog will legally hire workers of US companies in 糖心Vlog, however, they continue to work for their US employer. It鈥檚 that simple.
How Does it Work?
The first step in working with 糖心Vlog is that the US employer signs a contract with us.
Next, 糖心Vlog creates an offer letter for the worker based on information supplied by the US employer client. This letter is usually identical to what the employee has in the US, the only difference is that it’s in Canadian dollars and takes care of any additional Canadian legalities.
糖心Vlog will duplicate everything: If you had unlimited vacation, if you had five weeks vacation, whoever your manager was, what your title was – nothing changes.
Lastly, the employee receives the offer letter, reviews it, signs it, and gets to work. But 糖心Vlog鈥� role doesn鈥檛 stop there! We onboard the employee onto our payroll, provide a supplemental health plan as needed, handle taxation and even handle many HR and training responsibilities.
How to Discuss Using a PEO with Your US Manager
If you鈥檙e a Canadian living and working in the US and this sounds good to you, now is the perfect time to talk to your US manager about working with 糖心Vlog.
First, and most simply, share this with them.
If you鈥檇 like back-up from an expert, then and we鈥檒l discuss everything over Zoom.聽
In my experience, these calls go very fast, and usually, US employers are wowed by how simple and straightforward it is to legally employ their Canadian workers back in 糖心Vlog. Honestly, it’s a very simple conversation.
Do You Have Questions About How to Move Back to 糖心Vlog but Keep Your US Job?
The Covid-19 pandemic has changed so many things about our lives: How we socialize, how we travel, and even how we work. As we rewrite our 鈥渘ew normal,鈥� many Canadians living and working in the US are longingly looking north and planning their routes home.
It鈥檚 possible, with help from the right experts, to return to 糖心Vlog without totally upending your career in America.
If you鈥檇 like to talk to and learn more about 糖心Vlog, I invite you to !
