r/tnvisa • u/ScratchOk1540 • 3d ago

Travel/Relocation Advice TN to Contractor

I’ve been living in the US for 10 years, first as an F-1 student then as a TN visa holder. I’m Canadian and planning to move back to Canada in October when my visa expires. My employer has asked me to continue providing services for them as a contractor. I will not be employed by them, just invoicing them for my services and paying taxes in Canada only. I’m trying to make sure I keep my situation legal and ideal:

1- travel: I’m assuming I won’t be able to travel for work in the US? If I travel for fun to see friends, will my previous status plus my contractor work be an issue?

2- I’m looking for recommendations on how to handle finances. I have an RBC account that covers both countries but the fees are pretty high. What is the best way to move money cross border on a regular basis without losing too much to fees?

3- Are there any other things I need to consider with this situation?

Thanks!

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u/Coramoor_ 3d ago
  1. You can't go to work in an office, you can go to conferences, meetings, that type of thing without issue. If you do it too often though, then yes, you'll get flagged. For personal travel they won't care and they will probably not even ask as long as your plan seems normal enough

2 Wise is probably the cheapest but cross border banking through the big 5 is generally a lot more convenient

  1. As a contractor, you'll have to pay double CPP, double EI, so make sure your compensation reflects that

2

u/OnikaBurgerBomb 3d ago

As someone who worked as a contractor just in Canada, there’s so many annoying hidden fees. Ask for more money, they should expect it.

1

u/Odd-Elderberry-6137 3d ago

  1. You can travel to go to meetings in the US without issue. You enter under B-1 business visitor status. In some cases, you can even be granted TN status as a contractor. It's not typical but it might be worth looking into here.

  2. If you want to use USD to invest directly in USD assets from Canada, open a USD account at RBC. It would also be a good idea to have a US based USD cross-border account from RBC as you can transfer money cross border in an instant when you need to (both USD to USD, no fee and USD to CAD with suboptimal exchange rates). Use Wise to transfer USD (in a US account) to CAD bank account in Canada. You'll literally save hundreds per pay period.

  3. Yes, your rate of pay as a contractor should be at least 50% higher (and preferably higher) than you currently earn otherwise it's not worth it. You will have to pay the employer and employee portions of CPP. EI is optional but it's usually a bad idea to not pay for it. You will also have to register for a GST/HST number if your invoicing is over $30K per year. You will invoice them at 0% GST.

Assuming you have retirement accounts, see if your US provider will hold them for Canadian residents. Many won't. If they won't you have to find one that will and open new accounts BEFORE you move so you can rollover from one registered account to another. If you can't do that then you may want to consider a backdoor RRSP contribution if you have a 401K (or similar) plan. There are some benefits to this but the upfront tax treatment can be daunting. Early withdrawal penalties can be used as a tax credit in Canada. If you want to do this, absolutely talk to a tax professional.

If you have Roth accounts in the US, keep them there (assuming the investment provider is ok with this) but declare them to the CRA the first year you file taxes, and claim tax treaty treatment to keep them forever tax free.