Over the past year and a half, Canadian workers across the country transitioned to a work-from-home environment. As U.S. / Canada travel restrictions ease, many Canadians are wondering if they can work remotely from their dream destination south of the border.
As life is gradually returning to “normal,” many Canadian employers and employees are wondering if work-from-home scenarios will continue in some form. Now Canadian workers are starting to wonder: Can I work remotely from paradise?
The answer may depend on your company and personal factors. So it’s not a clear “NO,” but it’s not an absolute “YES” either.
There are many factors that determine your ability to work from home in the U.S. as a Canadian citizen and Canadian employee. Before you pack your laptop and sunglasses, it’s wise to take these three steps first.
Get approval from your employer to work remotely
If you’re thinking of travelling to a U.S. destination to work remotely, it’s essential to let your employer know your intentions before you put any plans in motion. Without prior approval, you might risk breaching your employment contract or open yourself up to disciplinary actions. Your company may have strict requirements and restrictions when it comes to remote work. For example, your employer may require you to return to the office on short notice, or they may have security protocols limiting the physical location of employees.
On the other hand, they may be fine with the idea.
The important thing is to be 100 per cent transparent with your company as you make your plans, and ensure they’re on board throughout the process. Many employers are creating rules and new guidelines as situations evolve. It’s smart to check regularly to ensure a previously approved move is still permitted.
2. Understand the tax and immigration implications
“If I work in the U.S. as a Canadian for a Canadian employer, will I be subject to U.S. income tax?”
This is likely the biggest question in the minds of Canadian workers considering the move. The answer is: it depends. It depends on both the amount of time you plan to spend in the U.S. and the ties you retain in Canada. For instance:
- You sell your home in Canada and plan on spending the full year in the U.S. You may now be considered a U.S. resident and subject to U.S. income tax regardless of the company you work for.
- You travel back and forth between the countries, retain an address and / or close family ties in Canada. You might be considered a Canadian resident still and expected to pay Canadian income taxes only.
