If I am employed by a US company but perform work both in Canada and the US, should I just receive a W-2?

Allan Madan, CA
 Dec 13, 2012
Photo credit: Foter.com / CC0
Photo credit: Foter.com / CC0

Assume that you are a Canadian resident and you perform work for a US based company in Canada and the US. The following will occur:

  • The US employer must allocate your total employment income between Canada and the US, based on the number of days worked in each country. This means that you will be issued both a W-2 and a T4 slip at the end of the year.
  • You will be required to report the employment income shown on the W-2 and T4 slip on your Canadian tax return.
  • You will also receive a Foreign Tax Credit in Canada for taxes paid in the US (Federal and State).



The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.

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