Canadian citizen (living in Vancouver British Columbia

QUESTION:
Hello,
I have exhausted all of my efforts in trying to find a straightforward answer to my (now) dilemna.  
I am a Canadian citizen living in British Columbia.  I recently got offered a job by a US company (in the US) and they do not require me to re-locate.  I am able to work from home and stay in Canada.  I will be paid US dollars and will be considered a full-time employee of the company vs. a sub-contractor.
Through my numerous previous research efforts, I have obtained the following information:
-  I only need to get an ITIN (US Tax identification number via form W-7) in order for the US company to withhold my taxes. 
-  The US company also sent me forms W-4 and I-9 to complete.
This should have been fairly straightforward.  I fill out the forms, have US taxes withheld and claim them back next tax season with the IRS.
However, the IRS now will not give out ITINs without a tax return being filed.
There is now discussions of the US company requesting me to possibly obtain a TN work visa (but still reside in Canada) only for the purpose of being able to get a Social Security Number so that I can file US taxes.  If I do this, will I not be taxed dually?
Is there a much simpler solution to this problem?  I have suggested to my US employer that they pay me (no taxes withheld) till year end, issue me a W-2 next year and I will pay all taxes due to the IRS myself and then apply for my ITIN at the same time.  Is this a feasible solution?
Many thanks for all your time and assistance!
Susana
======================================
david ingram replies:
NO NO NO NO NO!
If you are working in Canada and living in Canada, there is absolutely NO US tax liability.  Your ONLY income tax liability is to Canada.
Your company has two choices.
1.    The easiest is to pay you as a self-employed contractor. They will pay you a contract amount equal to what would be your salary PLUS their half of the Social Security and Medicare and any amounts that they would usually pay to your pension or 401 plan (K, B, etc.),  and any other incentives that might exist.
They would not issue you any IRS documentation other than maybe give you a statement at the end of the year stating that they had paid you "x" number of dollars.
You would file your return next year as a self-employed person and pay both halves of CPP and your income tax.  You could buy (and they could pay you extra for it) your own group medical cheaply by joinng the local chamber of Commerce or the Vancouver Board of Trade.
OR
2.    They could get a Canadian Employer's number from the CRA.  You could look after your own payroll or we (or a 100 others) could do it for you.  You would make deductions for EI (Employment Insurance), CPP (Canada Pension Plan) and Income tax.  The company can join the local Chamber of Commerce or the Vancouver Board of Trade to buy you a Canadian Group benefits plan.
You, we, or the company would then file a Canadian T-4 slip for you by Feb 28th, 2005 for the 2004 tax year.
There is NO US tax liability for you if you are not physically present in the USA when performing your duties for the US company.
Answers to this and other similar  questions can be obtained free on Air every Sunday morning.
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Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If y
  
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