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What Canadian Contractors Working within the US Have to Know (Up to date 2021)


The prospect to work as a contractor in the USA is an thrilling alternative for Canadian employees to expertise a international market, increase their ability set, and achieve worthwhile perception into US enterprise practices. Sadly, new alternatives for Canadians to work south of the border have been almost nonexistent during the last 18 months because the pandemic closed worldwide borders and severely restricted the power to work overseas.


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However with vaccines rolling out and borders slowly starting to reopen, Canadian contractors are once more contemplating working in the USA as a viable choice. In doing so, they need to develop an understanding of worker and employer duties within the US. Canadian and US rules regarding compensation may be fairly completely different, particularly as they concern contract employees.


As a Canadian citizen working in the USA for a US employer, understanding tips on how to navigate two completely different authorized programs may be complicated. To assist make sense of all of it, listed below are a few of the issues it’s best to know when searching for alternatives to work within the US.



There are some pretty important variations between the US and Canada in relation to labour legal guidelines, and specifically, non-compete agreements. Whereas non-compete agreements exist in Canada, and Canadian employers do have the fitting to ask you to signal one, they’ve nowhere close to the affect that they do within the US.

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In Canada, when you could also be requested to signal a non-compete settlement, they’re not often enforced, because the Canadian authorities has deemed them in violation of employees’ rights. This isn’t the case within the US, the place non-compete agreements are enforceable and extremely widespread. In case you are a Canadian contractor for a US firm and are requested to signal a non-compete settlement, it will be important that you just perceive the implications of the settlement.


In case you select to enter right into a non-compete settlement, amongst different issues, you’re barred from discussing commerce secrets and techniques and should not allowed to search out employment (inside the US) in an analogous area for the time period designated in your contract. 



If you’ll work within the US, you should be correctly labeled and correctly compensated by your US employer. Many employers intentionally misclassify their workers as contract employees, despite the fact that they’re working the identical hours and dealing underneath the identical circumstances as a full worker.


This advantages the employer as a result of, as a contract employee, they aren’t obliged to offer you any of the advantages that they might be legally required to increase to a daily worker, like paid holidays. In case you are an unbiased contractor, you’ve sure rights that you need to be allowed to train, together with the power to set your personal hours or to subcontract your work out to others.

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Employers who’ve taken you on to finish the job of a daily worker, however have labeled you as an unbiased contract employee, are in critical violation of Canadian labour legal guidelines that are enforceable by way of the Canada Income Company (CRA). In case you have been misclassified, you aren’t being correctly compensated, and should not receiving the total roster of advantages that you’re entitled to!



The USMCA settlement between the US, Canada, and Mexico implies that Canadians can work within the US underneath the Treaty NAFTA (TN) class or non-immigrant classification. In case you have Canadian citizenship, as a Canadian contractor for a US firm you aren’t required to use for a VISA to work overseas. Nonetheless, you will need to have the ability to present a letter out of your employer that particulars what you can be doing for them, the size of your keep, and your related {qualifications}.


TN nonimmigrants are allowed to remain within the US for a interval of as much as three years, at which level they would wish to request an extension from their employer or return to Canada to start the method once more. You will need to word, nonetheless, that if you’re doing contract work within the US underneath the TN class, you’re thought-about a Canadian citizen residing briefly outdoors of Canada, and are required to proceed to pay each provincial and federal taxes.

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Though Canada and the US will step by step calm down the strict rules on cross-border journey and work, the implications of COVID-19 will probably affect the power of Canadian contractors to work within the US for a while to come back. Relying on how and whenever you hope to start working within the US and your area of labor, offering proof that you’re totally vaccinated could also be required.

Though the pandemic has made working within the US as a Canadian more difficult than ever, it has additionally resulted in an explosion of distant work alternatives. Canadian contractors can work for American corporations whereas remaining at house. Working from Canada requires some additional concerns from employers, nonetheless. They now should be sure that contractors working in Canada are paid legally and correctly underneath Canadian tax and employment regulation. The simplest manner to do that is to interact an employer of report (EOR) for payroll and compliance in Canada. This selection is good for contractors seeking to steadiness the present challenges of worldwide work with the alternatives that include working for a US firm.



What US Companies Need to Know about Paying Employees in Canada