American working in Canada and the US while living in

I am a US citizen working in Canada.  My postition is responsible for
Manufacturing in both Canada and the US.  I moved to Canada mid 04, and had
my pay changed to our Canadian office.  Am I responsible for paying Canadian
Gov Pention, Employment insurance, etc?
I will be moving back to the US mid 05.  Would I be better off being paid
out of our US office, and have US taxes withheld, or do I need to continue
to be paid out of our Canadian office?
david ingram replies:
Your employer can write to the Canada Pension board and ask to have you
exempted from Canada Pension Plan contributions and keep your US Social
Security up if your employment in Canada is expected to be for less than 5
years AND you were transferred to Canada as you seem to have been.  If you
had just taken a job in Canada, this option is not available.
That means that your Canadian employer will still deduct Canadian Income Tax
and Canadian Employment Insurance.
It would be worse accounting if you were being paid out of the US office.
The big question is: "Are you being guaranteed tax equalization for your one
year transfer?"  Most employees in your position would get tax equalization
which means that the company would make up for any extra tax you had to pay
to Canada.
I would be happy to look after your US / State / Canada tax returns this
year by fax, snail mail, email or courier.
A typical fee would be in the $700 to $1,400 range with $1,000 Canadian more
likely than $700.
Your position is further complicated by the fact that you are still working
in the USA as I read your email. That means that we need the number of days
worked in both countries to pro-rate the income between the two countries.
You will still pay tax to the US first for the days you worked in the US and
then report it again in Canada and claim a foreign tax credit for the tax
paid the US and any state you worked in.
  Answers to this and other similar  questions can be obtained free on Air
every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Dundee Wealth
Management and I, David Ingram  will be hosting an INFOMERCIAL but LIVE talk
show called "ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the internet
at <>
Local calls are taken at (604) 280-0600 and Long Distance calls are taken at
1( 866) 778-0600
I do not know how far the LD line reaches.
This from "ask an income tax and immigration expert" from
<>  or <>  or <> . David Ingram deals on a
daily basis with expatriate tax returns with:
multi jurisdictional cross and trans border expatriate problems  for the
United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait,
Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France,
Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia,
Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran,
India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba,
Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK,
GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas,
San Antonio and Houston Texas
Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration
Tips, Income Tax and ImmigrationWizard Income Tax and Immigration Guru
Income Tax and Immigration Consultant Income Tax  and Immigration Specialist
Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist
expert preparer consultant expatriate anti money laundering money seasoning
FINTRAC E677 E667 4789 4790 TDF-90 Reporting $10,000 cross border
Alaska,  Alabama,  Arkansas,  Arizona,
California,  Colorado, Connecticut,
Delaware, District of Columbia,  Florida,
Garland, Georgia,  Hawaii,  Idaho,  Illinois,
Indiana,  Iowa,  Kansas,  Kentucky,
Louisiana,  Maine,  Maryland,
Massachusetts, Michigan, Minnesota,
Mississippi,  Missouri,  Montana,  Nebraska,
Nevada, New Hampshire,  New Jersey,
New Mexico, New York, North Carolina,
North Dakota,  Ohio,  Oklahoma,  Oregon.
Pennsylvania,  Rhode Island,  Rockwall,
South Carolina, South Dakota, Tennessee,
Texas,  Utah, Vermont,  Virginia,
West Virginia, Wisconsin, Wyoming,
British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, Quebec City,
New Brunswick, Prince Edward Island,
Nova Scotia, Newfoundland, Yukon and
Northwest and Nunavit Territories,
Mount Vernon, Eumenclaw, Coos Bay
and Dallas Houston Rockwall Garland
Texas  Taxman and Tax Guru  and wizzard
wizard - consultant - expert - advisor -advisors consultants - gurus - Paris
Prague Moscow Berlin
Lima Rio de Janeiro, Santaigo
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321 Fax (604) 980-0325
Email to taxman at <mailto:taxman at> <>
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 and the author and any
and all non-contractual duties are expressly denied. All readers should
obtain formal advice from a competent and appropriately qualified legal
practitioner or tax specialist in connection with personal or business
affairs such as at <> . If you forward
this message, this disclaimer must be included."
Be ALERT,  the world needs more "lerts"
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (
Version: 6.0.799 / Virus Database: 543 - Release Date: 11/19/04
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (
Version: 6.0.799 / Virus Database: 543 - Release Date: 11/19/04


Trackback URL for this entry:

No trackback comments for this entry.