For skilled professionals, the H-1B visa program offers an invaluable pathway to working in high-demand sectors in the US. However, with an increasingly challenging immigration process and a capped number of H-1Bs available, uncertainty is leading many to explore alternatives. One compelling option is pursuing a US job in Canada, where professionals can benefit from Canada’s favorable immigration policies and thriving job market.
To tap into this pool of skilled talent, Canada recently unveiled a new work permit targeting immigrants in the US holding H-1B work visas. The program swiftly reached its 10,000-applicant cap within just two days of its launch.
While relocating to Canada offers a wide range of opportunities, many people wonder whether they can still keep their current job in the US while working remotely. There are some obvious reasons for this, the salaries tend to be higher in the US, and with a favorable time zone, and close proximity to Canada, there’s no reason tech workers have to leave their job behind. Physical location is much less of a concern for employers than in the past.
The good news is that there are ways to work remotely in Canada for a US company — even if that company doesn’t currently have an office in Canada — by partnering with a Professional Employer Organization (PEO). Here’s how it all works.
Understanding Your Options
As a US citizen considering moving to Canada while keeping your US job, it’s essential to understand your options. You have several pathways to explore, including the USMCA/CUSMA visa, Express Entry system, and other immigration programs. Each option has its requirements, benefits, and limitations. It’s crucial to research and evaluate these options carefully to determine the best fit for your situation.
One option to consider is the USMCA/CUSMA visa, which facilitates the movement of professionals between the US, Canada, and Mexico. This visa is particularly beneficial for those who wish to work remotely from Canada while being employed by a US company. However, it’s essential to understand and comply with Canadian employment laws when working remotely from Canada under this visa.
Another option is the Express Entry system, which processes a majority of Canadian immigration applications, leading to permanent resident status. This program is designed for skilled workers, and eligibility is based on factors such as education, work experience, language proficiency, and adaptability.
What is a PEO and how can it help you port your US job to Canada?
Tech professionals truly can enjoy the best of both worlds, a vibrant career with US wages and the stability and quality of life that Canada consistently delivers. If your current or desired US employer doesn’t have an office based in Canada or isn’t familiar with the specifics of hiring remote workers in Canada, they have options.
A PEO acts as a co-employer, handling human resources, payroll, and other administrative tasks, enabling you to continue working for your US employer even while based in Canada. This offers a legal framework for your employer and means they can easily comply with Canadian labor laws. The PEO will essentially take over certain responsibilities, typically handling tax, insurance, benefits, and compliance. The employee and US employer can maintain their working relationship, meaning only the administrative aspects are routed through the PEO. The Canadian government grants the necessary work permits, and adhering to immigration regulations is crucial for US workers.
The US company gets to hire and retain key talent, avoid the difficult H-1B visa process altogether, and have easy access to that employee when needed. You can carry on working for your employer and retain a US salary while reaping the benefits of life in Canada. Here’s what you can expect.
Eligibility and Requirements for a Canadian Work Permit
To work in Canada, you’ll need to obtain a Canadian work permit. The eligibility and requirements for a work permit vary depending on your situation. Generally, you’ll need to meet the following requirements:
- Have a job offer from a Canadian employer
- Meet the educational and experience criteria for your profession
- Obtain a Labour Market Impact Assessment (LMIA) if required
- Submit a work permit application
It’s essential to note that some exceptions apply, such as the International Mobility Program (IMP) workers, intra-company transferees, NAFTA and CETA workers, and other exceptions as per the Immigration and Refugee Protection Regulations (IRPR).
What benefits and cost savings can you expect when you move to Canada?
Canada’s overall booming tech sector and quality of life are a major draw for skilled workers worldwide for several reasons. There’s also the cost savings, primarily due to the lower cost of healthcare, education, and potentially more favorable taxation, depending on your situation.
Unlike the US, where healthcare can be expensive even with insurance, Canada offers a publicly-funded healthcare system that covers the cost of most basic medical services. Canadians enjoy the same benefits that many Americans only obtain if they work for the most generous, prestigious businesses. Employees no longer have to worry about high premiums or out-of-pocket expenses for standard medical procedures.
The savings become particularly apparent if you are earning a US salary and can also enjoy the benefits of a lower cost of living in Canada.
Tax Implications and Benefits of Working Remotely from Canada
As a US citizen working remotely from Canada, you’ll need to consider the tax implications of your situation. You may be subject to taxation in both the US and Canada, depending on your residency status and the type of work you’re doing.
However, there are also benefits to working remotely from Canada. For example, you may be eligible for Canadian health insurance, which provides comprehensive coverage for medical expenses. Additionally, you may be able to take advantage of Canada’s lower cost of living and socialized healthcare system.
It’s essential to consult with a tax professional to understand your specific situation and ensure you’re meeting your tax obligations in both countries.
What about Canadian permanent residency and citizenship?
If you’re holding a work permit and are looking to make your move to Canada more permanent, there are several pathways for skilled workers to obtain permanent residency and ultimately, citizenship.
Obtaining a work permit or employment authorization card can take up to six months, so it is crucial to plan ahead to ensure you can work legally in Canada.
Canadian Experience Class
One of the fastest ways to PR is through the Canadian Experience Class under the Express Entry system. If you’ve worked in Canada for at least 12 months and meet other eligibility criteria like language skills, you could apply for permanent residency through this stream. It’s especially appealing because it is designed to provide a quicker transition from temporary worker status to permanent residency.
Fast pathway to Canadian citizenship
After obtaining your permanent residency in Canada, the path to citizenship becomes much clearer. With just three additional years of permanent residency, you can apply for Canadian citizenship, provided you meet other eligibility criteria such as language proficiency and time spent in Canada.
Practical Considerations for Cross-Border Workers
As a cross-border worker, you’ll need to consider several practical aspects of your situation. For example:
- Housing: You’ll need to find a place to live in Canada, which may involve renting or buying a property.
- Healthcare: You’ll need to understand your healthcare options in Canada, including access to public healthcare and private health insurance.
- Transportation: You’ll need to consider how you’ll commute between the US and Canada, including options such as driving, flying, or taking public transportation.
- Family: If you have a family, you’ll need to consider their needs and how they’ll be affected by your move to Canada.
It’s essential to research and plan carefully to ensure a smooth transition to your new life in Canada.
If you didn’t get the H-1B visa holder open work permit, try Global Talent Stream.
If you haven’t been able to secure one of the 10,000 open work permits but are still interested in moving to Canada, there’s another route you can consider: the Global Talent Stream (GTS). GTS is a fast-track visa program that allows skilled workers to get a Canadian work permit in as little as two weeks.
Once you have a GTS work permit, you can begin working in Canada and can subsequently apply for permanent residency under the Canadian Experience Class, just like you would with an open work permit. The PEO model works equally well with the GTS work permit, allowing you to maintain your employment ties in the US while residing in Canada. You can even move back to the US in the future, with new experience gained while working in Canada — opening up new immigration pathways to the US.
Path to Canada can help you get started in Canada and let you continue to work for an American employer
Whether you are about to relocate to Canada and want to retain your current tech job or you are looking to work for an American employer from Canada, Path to Canada can help. And if your US employer doesn’t have a Canadian office, no problem.
As a professional employer organization (PEO), Path to Canada can legally hire you on behalf of your US employer. We take care of the billing, HR, legal, and other paperwork, and you carry on working in Canada.
Reach out to us to learn more about how we can help you work remotely for a US tech company from Canada, or join our database of qualified candidates seeking to move to Canada.
The content and materials available via Path to Canada are for informational purposes only and do not constitute legal advice.