Living in Canada,

QUESTION:
If a potential US company wants to hire a Canadian citizen, who will be
working from home in Canada but travelling to US for meetings and paid in US
dollars, what does that employee need in terms of visas, green cards etc. if
anything?
=============================
david ingram replies:
If the US Company hires the Canadian to work in Canada and pays them as a
self employed person, there is a Canadian Business doing work remotely for
an American Business.
The Canadian can then travel to the US on a fact finding visit or to gather
information (attend meetings).  The Canadian can NOT go to the US and
program a computer or run a machine, etc however without a visa.
The company should not make any deductions from your remuneration for
anything in the US.
If you do go to the US to attend the meetings and do some fact finding, you
must have clear documentation that you are a Canadian business and should be
prepared to file a US tax return for the time you do spend in the US.  Under
Article XV of the US / Canada Income Tax convention, you would not owe any
US federal tax on up to $10,000 US of earnings for services performed in the
USA.
If you were going to California, you would owe State tax on even a $100.00
of earnings.
The following is the answer to another similar question a couple of days
ago:
QUESTION:
Hello,
I was hoping you could answer a few questions for me.  I am a Canadian
citizen. A will be starting an offsite contract with a company in the U.S.
Since this is a software support contract, I will be logging on to their
systems remotely from my home in Canada.  I believe this would be still
classified as performing the work in Canada.
Is this correct?
Do I need to pay U.S taxes?  If not,
which form do I need to give to the U.S company so that they do not withhold
U.S taxes?  I believe it may be form w8-ben.  Is this correct or do I need
to give them a different form?
I look forward to your response.
Thanks for your time.
James
======================
david ingram replies:
You have no tax liability to the US.  A W8-BEN would work if they are
concerned.  In reality, they do not or should not need any form from you
although they might be more comfortable with one on file.
You are simply self-employed in Canada and working in Canada.  Watch out
about any trips to the US though.  Do not get caught doing a "little"
programming in the US when you just happen to be down there.
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
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at
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CEN-TA Cross Border Services - Tax, Visas, Immigration
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