From: Mxxxxx    

> To: <gail@centa.com>
> Subject: Payment of wages to American Citizen working in Canada
>
>
> > Dear Gail,
> >
> > As per telephone conversation earlier today - here are the details and
> > questions that I have.  If you could offer some assistance, it would be
> > greatly appreciated.
> >
> > Our company, operating in BC is considering hiring an individual who is a
> > citizen of the US on a 1 year contract.  He would be residing in BC and
> > working out of our office in Bby.  Salary and benefits offered - approx
> > $75,000 CDN for the year.
> >
> > What are the requirements regarding a CDN SIN#?  Is the company required
> to
> > withhold the standard payroll deductions?
> >
> > Thank you for your help.
> >
> > Mxxxxxxx
> > (604)xxx-xxxx
> >
> >
David Ingram replies

Subject: Re: Payment of wages to American Citizen working in Canada

Your US citizen is taxable in canada on any income he earns in Canada.  You should put him on a standard payroll and deduct the same taxes you would deduct for anyone else.

 

He will be filing his Canadian T1 return and then have to file a US return as well because all US citizens have to file a return for as long as they remain US citizens.

 

If he is in Canada for a CALENDAR year, he can deduct up to $76,000 Canadian from his US return.  If he is here from May to April, than he cannot deduct or exempt the $76,000 in the same way.  In this case, he would likely claim a foreign tax credit.

 

---

david ingram - www.centa.com
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - Fax (604) 913-9123
cell (604) 657-8451 (10 AM to 10 PM 7 days)
US / CANADA Income Tax and Working Visa Matters