Author Topic: Moving to Vancouver for work  (Read 431 times)

flowerchit

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Moving to Vancouver for work
« on: October 20, 2017, 05:37:52 AM »
I値l be moving up to Vancouver with my family from the US. My wife痴 a dual-citizen and I知 a US citizen. We have 2 kids, who値l both be working in Vancouver. I have a 401k plan in the US, an IRA in the US, and some other cash and investment accounts. I知 wondering if there痴 any tax planning that can be done before we move up. I heard that maybe converting my IRA to a Roth is a good idea. I知 also curious about whether I should be incorporating when I move up to Canada. I work for an IT firm but I have the opportunity to do some work on the side. I can do consultation work outside of my regular firm employment and I wonder if I should incorporate to do this work. I値l also be working for my employer up in Canada, they値l be issuing me a W2 Form. Is this correct? I致e heard that I needed to be paid on a T4 Form.

Can we setup a consultation so we can discuss this please?

Seemlyhel233

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Re: Moving to Vancouver for work
« Reply #1 on: October 20, 2017, 07:34:29 PM »
The W2 tax form and T4 fall under the same ruling. The form is meant to tell your wages earned from the company you worked for if you received over $500.

Phil Hogan, CPA, CA, CPA (Colorado)

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Re: Moving to Vancouver for work
« Reply #2 on: October 21, 2017, 02:53:47 PM »
Hi

You certainly have some items that require planning. I'll give you some "food for thought" and then perhaps you can call my reception at 250-381-2400 to setup a time to discuss your situation in more detail:

- Depending on your income, converting some or all of your IRA or 401k money to a ROTH IRA may be a good option before you enter Canada. You will however need to ensure proper ROTH IRA elections are made for Canadian purposes once you enter.

- Being an employee of a US company while working in Canada can be challenging. First the US company would be required to pay you on a T4 form and not a typical US W2 form. Often US companies are not willing to setup a Canadian payroll account. Second, they will often continue remitting US social security taxes instead of Canadian CPP or EI.

- It may be easier to simply be a contractor for your US company. You would invoice them for work and they would pay you and issue you a 1099. This income, assuming it's being earned in Canada will be tax free in the US. You will also need to register for GST if you cross the $30,000 threshold.

Please give me a call and we can chat further.

Cheers

Phil
Phil Hogan, CPA, CA, CPA (Colorado)
250-381-2400
Hutcheson.ca
phil@hutcheson.ca
* The information contained in these posts should not be construed as professional advice and is for informational purposes only.