Canadian working for a US company in Canada Free Questions with Dan Walkow, Ozzie Jurock, Dan Walkow and david ingram Income Ta

XXXXX wrote:

Below is the result of your feedback form.  It was submitted by
XXXXX [email protected]) on Friday, July 31, 2009 at 15:18:20

My_question_is: Both

question: I am living and working in Canada for a US company. I will be a sales rep trying to sell their goods to retail companies in Canada. What employment contract should be used? I am going to be on commission.

What do I need to know about taxes on any money I receive?

Should this US company deal with a Canadian lawyer?

If so, who is experienced in such situations?

I live in BC. Thank you.

david ingram replies:

The question has too many parameters to answer fully in this venue.  However I recognize you as being the person who got through on the phone.

As I said, I charge for the kind of things your were asking and you and possibly your employer need to talk to someone to decide how they are going to deal with you. If necessary, we could easily do a conference call with the person who is hiring your services.

Briefly though you have two main possibilities:

1.   The US company opens up a payroll account in Canada and hires you as an employee.  They will deduct CPP, EI and Income tax from your wages.  If you are getting a salary with a commission, this is likely the best way for you and your company.  If laid off, etc., you can claim Employment Insurance.


2.   You become your own company which can be incorporated although i suggest 99 times out of a 100, that you remain a proprietorship.  This is what you should do if you are being compensated mostly or entirely by commission and will work out of your own premises at your own hours with your own car and computer and other tools.  The advantage is that if you are a proprietorship and have a mortgage, you can use the proprietorship to make your mortgage interest deductible.

For more information on making a mortgage deductible, see the November 2001 newsletter in the top left hand corner at


I try and answer two FREE questions a day.
Free questions are only answered at [email protected]

I have exceeded my 2 a day limit for free questions in writing today.
This question can be answered one of two ways:
1.    A personal consultation by phone or in person.  This would cost $450.00  Canadian plus GST of $22.50 if  You are in Canada or $450 Canadian if you are outside of Canada. 
2. If you just have a quick question and want a free 5 minute hit, you can phone my webcast every Wednesday night from 6 PM to 9 PM Vancouver (Los Angeles) time by tuning in to
The toll free North America Phone number is 1-866-980-0499
The Local Lower Mainland phone number is (604) 980-0321
If you are phoning from out of North America, you should use
(604) 980-0499 and tell them you are phoning on your own dime and we will try and put you in first.

Wednesday August 5th, 2009 features

6 to 7 PM  - Fred Snyder, host of "ITS YOUR MONEY" from 9 to 10:30 AM every Sunday on CISL (650 on your AM dial) and from 5 to 6 PM on CKNW (980 on your AM dial).  This next Sunday (the first Sunday in the month, I will be Fred's Guest and we will be talking a lot about how to make your Canadian Mortgage Interest Tax Deductible on your CANADIAN return.  You can also ask about (and get one free by calling) a written Financial Plan for the future or what to do with your pension.  You can phone in with a question for Fred or a question for me on CISL, CKNW or the Web program at

7 to 8 PM will be the inimitable, one and only, Ozzie Jurock, Canada's foremost Real Estate Guru and author of Forget About Location, Location, Location. -  Ask about where the deals are and of course, we will take your calls on Real Estate, US and Canadian Income Tax, etc.

8 to 9 PM will be Dan Walkow  Dan has made himself one of the very FEW US Canadian Financial People legally qualified and LICENSED to deal with your financial affairs on either side of the border.  If you are a Canadian living in the US or Canada, or an American living in Canada, Dan is the only person for you to deal with if you have investments, IRA, RRSP, 401(K), RRIF or any other financial account on the other side of the border or intend or think you will accounts on both sides.  AND, if you are intending to move from the US to Canada or Canada to the US, you have to know that it is a time consuming process to develop a new credit history.  When you deal with Dan, he can look after cross border Visa and Mastercard Accounts and make it a seamless transition. 

Through the whole program, I will be pleased to take calls on your Canadian, American or International Tax and immigration matters.  Call us at  1-866-980-0499

david ingram


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