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 can end up with payroll withholding that does not match where they live and work, 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
- May be needed, depending on your status and whether any income is US-source, for example work you performed while in the US.
- T1
- Your Canadian return reporting worldwide income, including your US salary.
- W-8BEN
- Documents foreign status for certain payments. It is not a general fix for employee payroll withholding; the right form depends on your status, where you do the work, and the type of payment.
Related guides
Questions
Common questions
Can my employer just tax me as if I lived in the US?
Withholding depends on your status, where you physically do the work, and how your employer runs payroll. If US tax is overwithheld, how it can be corrected depends on the payment and your facts. We help you and your employer review the setup.
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.