Remote for a US Employer
Paid on a US payroll while living and working from Canada, full time.
The situation
Where this gets complicated
Remote tech and corporate employees kept on US payroll after relocating to Canada face payroll withholding that does not match their actual tax residency, plus equity compensation that vests across two tax systems.
W-2 income from a US employer while physically living and working in Canada
RSUs or stock options that vested before or after your move
US federal and state withholding that does not reflect Canadian residency
An employer unsure how to handle your payroll setup
Forms that typically apply
- 1040NR
- Filed to reconcile US withholding against your actual US-source income.
- T1
- Your Canadian return reporting worldwide income, including your US salary.
- W-8BEN
- Filed with your employer to establish your non-resident alien status for withholding purposes.
Questions
Common questions
Can my employer just tax me as if I lived in the US?
They can withhold that way, but it usually overpays US tax and creates a bigger reconciliation on your return. We help you and your employer align withholding with your actual situation.
What happens to my RSUs after I move?
Vesting is sourced partly to where you worked when the grant was earned. This often means splitting the income between US and Canadian tax treatment.