Working for US Companies - how do you get paid

ugly wrote: ↑ 1 - I have a US bank account at a US bank. I set it up in the before times when I would cross the border to go to work. I get paid through ACH, which is sort of like the US direct deposit (https://en.wikipedia.org/wiki/ACH_Network). My employer just pushes the payment to my account.

I think most people use a US account like the RBC US account. It's probably more convenient: https://www.rbcbank.com/cross-border/us ... s.html#new

2 - I'm paid as an employee. But it was never something I discussed when I was hired.

3 - I file taxes in both countries. I pay taxes in the US for my US employment income. Then when I file my Canadian taxes I use the US taxes paid as a tax credit so I'm not double taxed. It cancels most of the Canadian taxes out, but I still end up paying a couple hundred in Canadian taxes.

4 - I probably should have talked to someone about it, but I've been too lazy, so I never looked into it.

ElBorak wrote: ↑ just out of curiosity, does your US employer issue you a T4 slip?

ugly wrote: ↑ No. I get the US W-2 slip.

jefouyang wrote: ↑ Are you on a work visa? or green card holder?

ugly wrote: ↑ I just have TN status. In normal times, I would cross daily.

kelaaa wrote: ↑ I know you mentioned further down for that you are were a commuter (now with Covid you are a remote employee for the time being) and I presume know the tax rules. But for the other people reading, that's is not how it works with the CRA to normally pay all US taxes for just being employed by a US based company. Normally when one is physically present in Canada, one reports that income as Canadian sourced. One has to keep track of how many days were physically in the US and physically in Canada to attribute the percentage allocation to each country. This rule was waived by the CRA for the 2020 tax year, and they might again for the 2021 tax year, but the long-term policy is still this way.