Questions about working (as a contractor) in Canada

[Esel Mann]

Any US residents here every work contract gigs in Canada for a US firm? If so I have some questions for which you may know the answers!

Details: Possible 6 month - 1 year electronics contract job opportunity. The contracting firm (who I'd be hired from) is here in the states with their client in Ontario, Canada.

My questions:

1 - Is it easy for a foreigner to open a bank account in Canada for purposes of pulling cash writing checks for local expenses? Perhaps I should find a Canadian bank operating here in the states and open up an account prior to heading up there?


2 - Is there any problem with my car being registered in the states?


3 - Are there any payroll deducted taxes I should take into consideration? The contracting firm is telling me I'd be W-2 and paid here in the states hence only US taxes deducted.

[Mark Henry]

Google should give you all the info you need.
I found this on one site:

For US citizens working in Canada, an agreement exists between the two countries. If you are working for an american company, and you are in Canada for fewer than 183 days in the calendar year, you need not have taxes withheld to Canada and you do not need to file a tax return to Canada. If, However, you exceed this limit the tax applies to ALL the income you earned in Canada that year. So, if you don't have taxes withheld and end up staying 190 days, than you are behind.

You are still required to pay taxes on ALL your income (worldwide) to the US. The US will allow you a credit for taxes paid to Canada. If all your income for the year is from Canada (or any other foreign country), and you make less than $US80,000, then you may be exempt from US taxes on that income for that year. But if you earn any income from inside the US for that year, you are not exempt and must file a return and claim a credit for the taxes paid to Canada.

[A horse with no name]

Hi...I am a Canadian in Vancouver. AS usual tax interpretations are all ways complicated.

There is a tax treaty between Canada and the US- I know that if you commute back and forth over the border that you only pay tax in country of residence.

The US has an extremely complex tax system so you would be best to phone a US IRS personal.

Canada also has toll free numbers - Try a search on -> Canada Revenue Agency NR5

Re your car...That you may find difficult. Both country's are paranoid on this subject-

I know that if you are 'permanently moving here that it not an issue but the vehicles must have the proper compliance VIN for Canada- e.g daytime running lights, seat belts. If you have a newer US car most are of compliance.

I know that you can drive any car in from the US on a vacation so I would think that with a temp work permit it would be covered.

Hope this info help's you a 'bit' .

[stealthn]

That's all crap, going the other way, if you are going to work for a US or CDN company in the US unless they jump through multiple hoops you can't even get over the US border.

Common knowledge is to say you are going to a conference.

[GWN7]

As to cheques, in Canada we don't use cheques like in the USA (The banking laws are different and merchants mostly don't accept ones from outside their trading area). I have watched people write a cheque for $2.79 in a Target store or to buy booze with. If your only her for a short time use your Visa or Master card and let them deal with the exchange issues and pay your CC online. Draw cash advances from your CC for pocket money.

We use bank cards up here more than cheques. Unfortunately the bank card systems don't work for purchases between our countries but you can use ATM's in either country for cash withdrawalls.

[JJ 911SC]

Visit your local Royal Bank of Canada at 420 South Orange Avenue #150 Orlando, FL 32801, United States (407) 428-3400.

They are the largest bank up here.

[imcarthur]

Originally Posted by stealthn

Common knowledge is to say you are going to a conference.

That only works for a while. Then you start getting: "You attend a lot of conferences & trade shows . . ." and the hassle begins. BTDT.

As above, X border bank cards are only good for withdrawing cash at ATMs. Just use a cc for purchases & a bank card for cash. This works pretty well everywhere in the world now. Never use a foreign check (or cheque as we call them) to pay or the hefty charges will surprise you. Opening an account with the local US branch of one of our Big 3 banks (Royal Bank, TD Canada Trust, CIBC) may help.

Info: Working Temporarily in Canada

For auto questions contact the provincial transportation ministry.

Ian