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Originally Posted by calgarygeologist
I figure this might be a good place to seek out some initial advice on working remotely for a US company. I don't know a lot about these situations outside of some very basic understanding of double taxation. I have a call setup with my former Manager who is now the CFO for a company in Washington state. There is an opportunity to bring me on in the near future and it would be a full time role but I would work remotely from Calgary with the occasional trip out to the head office.
What should I know about taxes, currency conversion of my salary, how benefits might work and other aspects of this type of scenario? I'll hopefully know more details on Friday.
As a side note, my former Manager did end up moving to Washington to actually work out of the HQ.
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They can hire you through an EOR (Employer of Record), like Deel, where you would be getting paid a salary in Canadian dollars, have taxes remitted at source, and would be eligible for benefits. You would technically be employed through the EOR.
Alternatively, if the company is open to it, they can simply hire you as a W8 contractor, via a consulting agreement, and they can pay you a gross monthly salary in USD, to your Canadian bank account. You would just open a USD account. They would be hiring you with the understanding of it being a full time role, but technically it would be structured like a contractor/consulting agreeement.
There are pro’s and con’s to both. If the company hires you through an EOR, they would most likely offer you less as a salary, because they are still responsible for benefits and payroll taxes. Conversely, you would be eligible for whatever benefits plans they have enrolled into through the EOR and can offer you.
Or if they hire you as a contractor, you can likely negotiate a higher salary because they are not on the hook for any payroll burden (which can be anywhere from 15%-30%). However, you wouldn’t be eligible for benefits, and would need to seek private coverage if desired. Also, you have slightly less protection if they choose to terminate you, since you’re technically just a contractor.
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