CANADA / USA payroll – US employer, canadian employee

Hi Nicolas,

I hope you are doing well. I wanted to ask for your advice about a USA/CANADA payroll.

Recently, I have been hearing from recruiters at US-Based companies with some career conversations.

I am wondering as a US-citizen/Canada Permanent resident if I was to start working full-time for a company in the US- where are taxes normally taken out?

Thanks for any help you can provide,

Mr K.

Hello Mr K.,

If you work for a US employer, in the US, then for sure there will be taxes withheld in the USA and you will receive a W2.

If the U.S. employer requires you to work in Canada, there may also be canadian tax withholding and a T4 issued, it depends.

What is important to remember, is that it really does not matter that much since at the end, you will not be double taxed due to the Canada-USA tax treaty that allows foreign tax credits.

If too much is withheld, you’ll get it back afterwards filing the tax returns.

There may be some social contribution issues that need to be addressed, sometimes it’s paid on both sides and not easy to recover.

I will be happy to discuss all this in a tax consultation. If you need more information, please let me know and I’ll send you the link to book the appointment.


Nicolas Godbout, M. Fisc., Pl. Fin.

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