Salary account For Canadian Resident - For US based employer

[renee]

I am looking for US consulting jobs and I hold a HSBC CAD account here. I am exploring cost effective options for getting Salary(USD) from US employer

Need your expert advice and reply for below options and on the queries

Option-1:

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a. Create a wise cross border USD account and use it to receive salary

b. when required use wise transfer to get CAD into HSBC account from wise-usd account

Q-1.Which wise account required here? personal or business?

Q-2.Will there be charge for employer or me here for salary credit in wise?

Q-3.Having fund in wise account will create any tax obligation to IRS?

Option-2:

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a. create TD border less account(USD/USA) and get is credited with salary

b. create a TD USD account(USD/Canada) in Canada

c. Transfer USD from USD/USA to USD/Canada

d. Use wise transfer to get CAD into HSBC account from TD USD account(USD/Canada)

Q-4.Will there be charge for employer or me here for salary credit in account?

Q-5.Transfer from USD/USA to USD/Canada will be charged by TD?

Q-6.Will this create any tax obligation to IRS?W8BEN to be shared with TD?

Option-3:

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a. create a TD USD account in Canada - USD/Canada

b. Use wise transfer to get CAD into HSBC account from TD USD account(USD/Canada)

Q-7.can employer transfer salary(USD) directly to USD/Canada account?

Q-8.Will there be charge for employer or me here for salary credit in TD USD/Canada account?

Which option is better and consumer less charges/fees?

Any other better and cost effective option?

Thanks

Ram

 

[marnster]

@renee My partner works for a US company from Canada. Their company will only send their pay to a US bank account - our solution was:

• Employer sends pay to an account with TD Bank in US (can open one online)
• Transfer from TD Bank account to TD Canada Trust Cross-border bank account
• Transfer USD from the Cross-border account to TD Canada Trust Chequing account when exchange rate is favourable

Note that there’s a ~2% ish loss on the exchange rate with the TD accounts, but it’s better than other options. This, and fluctuating exchange rates can cause headaches at tax time.

 

[pochrist]

@marnster RBC offers a similar product as well.

 

[eal22]

@renee Following!!

 

[eal22]

Honestly I just always fly back with less than 10k limit to Canada on each visit but collect money in a US BOA and put it in TD

 

[greatestfaith]

@renee Someone I know does this. My friend is not an American citizen but lives in Canada.
From my understanding you would have to be a contractor, to be employed by a u.s entity if you are not a citizen. My friend has a business registered with the government federally/ provincially and takes his salary from 'the business'. They use TD account .

 

[johnjohn74]

@greatestfaith This is me right now, but it’s different than being a full-time employee for a US company, which it seems like could be complicated. Being a incorporated is the easiest way, but you receive 0 benefits (not that you would need any while making that USD).

 

[angelfire70]

@renee What did you end up doing? This is my situation now.