It’s no secret that some of North America’s top talent have been swapping places across the border for years. Access to temporary work visas thanks to the 1994 enactment of the North American Free Trade Agreement (NAFTA) has created an easy way for the Canadian local workforce to experience life in America.
The United States is the most popular destination for Canadians living abroad. Statistics from 2019 show that the US is home to more than 60% of all emigrants from Canada. Whether driven by a unique professional opportunity or simply a lifestyle change, it’s undeniable that the US offers an enticing array of working opportunities for the Canadian market. Especially in sectors such as business, finance, and many creative fields.
However, Canadians considering the move should first consider the legalities of moving to the United States for work and how they can abide by local laws. Most importantly, Canadian workers must obtain the proper visa and employment insurance to work and reside in the US legally.
If this resonates with you, keep reading to learn more about the types of working visas Canadian citizens may be eligible to apply for, the application process, and a few things to consider when working in the US.
Can Canadians Work in the United States?
The short answer is yes. Canadian citizens are allowed to work in the United States. Before working in the United States, you must obtain the appropriate work visa from the United States Citizenship and Immigration Services (USCIS).
In some cases, Canadians may only be allowed to obtain a work visa after receiving a job offer from a US employer. Luckily, Canadian workers have a few advantages thanks to the variety of US work visas available to Canadian nationals.
Taxes and Form W-8BEN
If you are a non-US citizen or foreign business that is contracting with an American company, you will be required to fill out form W-8BEN.
W-8BEN is a tax form used in some cases by the US Internal Revenue Service. The IRS uses Form W-8BEN to track the income generated by independent contractors while contracting with American companies. It allows foreign individuals and entities certain tax benefits that may limit their tax liabilities to the United States government.
Types of US Work Visas Available to Canadians
There are several visa options open to Canadian citizens who wish to work in the United States. The specific visa you'll need depends on your qualifications, the industry sector, the type or job, and the duration of your stay.
Below are a few of the most common types of visas that skilled Canadians can apply for.
- TN Visa
- H-1B Visa
- L-1 Visa
- O-1 Visa
- E-1 Visa
TN Visa (Nonimmigrant NAFTA Professional)
The nonimmigrant NAFTA Professional (TN) visa is available to Canadian and Mexican citizens under the North American Free Trade Agreement (NAFTA). It's designed for professionals in certain occupations, including engineers, scientists, and computer programmers.
These visas are usually granted for up to three years but can be renewed.
Applying for a TN visa as a Canadian is typically the fastest way to acquire a US work visa thanks to its minimal eligibility requirements by the guidelines set by NAFTA. TN-1 visas are issued to Canadian nationals, while TN-2 visas are issued to Mexican nationals. Under the NAFTA agreement, TN nonimmigrant status is given to citizens from these countries, which allows them to work in the United States under predetermined conditions as NAFTA professionals.
What Does NAFTA Stand For?
So, what is NAFTA anyway? And what does NAFTA stand for? NAFTA stands for The North American Free Trade Agreement. The agreement was enacted on January 1, 1994, and seeks to liberalize trade between the United States, Mexico, and Canada.
The agreement abolished tariffs and trade barriers to foster special economic relationships between the US, Canada, and Mexico, which are all part of the free trade zone. The agreement does not, however, allow for trade secrets of each country to be openly shared with those who are unauthorized.
TN Visa Eligibility Requirements
Canadians may be eligible to apply for a TN visa and work in the United States as NAFTA professionals if the following conditions are met:
- You are a Canadian citizen
- Your profession is on the NAFTA list of approved professions
- Your position in the US can only be filled by a NAFTA professional
- You must be employed in a prearranged full-time or part-time job by a US employer; self-employment will not be permitted
- You must meet all the necessary qualifications and have the necessary education or work experience for the position
Application Requirements for Canadian Citizens
Visas are not required for Canadian citizens entering as a NAFTA Professional. However, a visa can be issued to qualified Canadian TN visa applicants upon request.
Canadian skilled workers who wish to apply for TN nonimmigrant status can learn more on the US Customs and Border Protection (CBP) and U.S Citizenship and Immigration Services (USCIS) websites. Additional information about receiving TN status without applying for a visa is available on the US Embassy Ottawa website.
For Canadian workers who wish to apply for the TN visa upon arrival in the US without first consulting citizenship and immigration services, you must show the following required documents to the US Customs and Border Protection officer.
- Proof of Canadian citizenship
- A valid Canadian passport
- A letter from your employer stating the position, purpose of employment, your professional capability as a candidate, educational qualifications, and length of stay
- All other necessary documentation of credentials and receipts of payment for applicable fees
H-1B Visa (Nonimmigrant Work Visa)
The H-1B visa is a non-immigrant work visa that allows skilled Canadian workers to be employed by US companies to work in the United States for a predetermined period of time. The H-1B visa is one of the most popular US work visas. It is available to Canadians who hold a Bachelor’s degree and seek work in a specialty occupation.
This includes IT, engineering, architecture, finance, and other sectors.
H-1B visas are usually issued for up to three years and can be extended for three years.
There is a limit of 65,000 H-1B visas that can be issued in a year for applicants with at least a Bachelor’s degree and an additional cap of 20,000 for applicants with an advanced degree.
H-1B Visa Eligibility Requirements
Canadian citizens who wish to obtain a H-1B visa must:
- Show proof of a valid job offer from a US employer who will sponsor the visa on your behalf
- Work in a specialty occupation and enter the US to work in the same field
- Show proof of a Bachelor’s degree or advanced degree
Application Requirements for Canadian Citizens
Because of the popularity of the H-1B visa, successful applicants are chosen through a lottery system.
Though applying for the H-1B visa might seem easy enough, this is the most limiting factor in obtaining this visa. However, if you are lucky enough to be chosen, the rest of the visa application is relatively easy and straightforward.
L-1 Visa (Intracompany Transferee)
Canadian employees employed by a Canadian company with a US entity could qualify for an L-1 visa. This visa allows employees to be temporarily transferred to work in the United States at a branch or affiliate of their current employment company.
This visa is available to employees who fall under one of the following subcategories:
- L-1A: For managers and executives
- L-1B: For employees with specialized knowledge
Qualified employees entering the US to establish a new office will be allowed a maximum initial stay of one year. All other qualified employees will be allowed a maximum initial stay of three years. Requests for an extension of stay may be granted in periods of up to an additional two years until the employee has reached the maximum limit of seven years
A foreign company looking to establish an office or hire employees in the US may also do so through this visa classification.
However, suppose a company is simply looking to hire skilled workers who currently reside in the US. In that case, it might be worthwhile to consider partnering with a professional employer organization such as a registered employer of record service (EOR US).
L-1 Visa Eligibility Requirements
There are strict conditions for Canadians considering applying for a L-1 visa. To qualify the applicant must:
- Have worked for their company outside of the US for at least one year within the last three years before applying for the L-1 visa
- Have assumed a managerial, executive, or specialized knowledge position and is entering the US to assume the same role
- Be willing to return to Canada once the maximum allowed duration of their stay has been reached
In addition, the company sponsoring the employee’s L-1 visa must also meet certain criteria, including:
- Qualifying as either as a parent company, subsidiary, branch or affiliate of the US company
- Be currently engaged in business as an employer in the US and at least one other country for the duration of the employee’s transfer
Application Requirements for Canadian Citizens
There are two main ways that Canadians can apply for an L-1 visa:
- Regular petition
- Blanket petition
With both ways, it is the company that must first file the application and sends the L-1 approval to the employee. Once that step has been completed, the employee can submit it and the other necessary documents to the US embassy in Canada.
O-1 Visa (Extraordinary Ability or Achievement)
If you possess exceptional skills or achievements in your profession, you may qualify for an O-1 visa. There are two categories of O-1 visas:
- O-1A visas for Canadians who can demonstrate their extraordinary abilities in the arts, sciences, education, business, or athletics
- O-1B visas for Canadians who have shown remarkable achievement in the motion picture industry and have garnered national or international recognition for their achievements
O-1 visas are typically issued for up to three years and can be extended.
O-1 Visa Eligibility Requirements
To qualify for an O-1 visa, you must provide proof that you have extraordinary ability in the industries mentioned above and have received national or international acclaim.
You must also continue to work in that same area of achievement once entering the US. Examples of international acclaim include highly regarded awards including the Pulitzer Prize, an Olympic medal, and a Grammy, Oscar, or Emmy.
Application Requirements for Canadian Citizens
The O-1 visa application process is quite straightforward. Your US employer must make the initial application and supporting documentation to prove that the applicant meets all outlined requirements.
If the application is approved, the remainder of the visa application process should be completed. This includes filing all required forms, paying the visa fee, gathering the necessary documents, and scheduling an interview at the US embassy or consular office in Canada.
E-1 Visa (Treaty Trader) and E-2 Visa (Treaty Investor)
E-1 visas are available to Canadians who engage in substantial trade or investment activities with the United States. Such activities include trade of goods and services, international banking, transportation and tourism.
There are two classifications of E visas:
- E-1 visas are for those involved in international trade
- E-2 visas are for investors
A maximum initial stay of two years is allowed. However, requests for an extension of stay may be granted in periods of up to two years each. There is no limit to the number of extensions that may be granted.
E-1 Visa Eligibility Requirements
To qualify for an E-1 visa you must meet the following requirements.
- Be a citizen of a country with which the US maintains an agreement of commerce or with which the US maintains a qualifying international agreement
- Carry on substantial trade
- Carry on trade between the United States and Canada
Application Requirements for Canadian Citizens
Canadian citizens interested in applying for an E-1 visa from Canada should refer to the U.S. Department of State website for further information about the application process.
It is important to note that visa requirements and eligibility criteria can change yearly. It's essential to consult the US Embassy or Consulate and the US Citizenship and Immigration Services (USCIS) for the most up-to-date information and guidance on which visa suits your situation.
If you are a company looking to hire skilled local workers, partnering with a trusted employer of record (EOR) in the United States (EOR US) or in Canada (EOR Canada) might be in your best interest to avoid any legal complications or employee misclassifications.
Looking to Hire Local Skilled Workers in the US or Canada?
In the past few years, many industries have seen a massive uptick in remote work. Now more than ever, companies are offering more remote work solutions, and skilled workers are interested in working for companies outside of their country.
Hiring employees in a foreign country can be a huge asset to you and your company. If you’re considering bringing a remote, global employee or contractor onto your team, here are a few perks and things to consider.
Access to a Larger Pool of Skilled Workers
Hiring globally allows employers to hire skilled talent that brings with them a fresh perspective of global markets. Your company can benefit from the diverse skill set offered by foreign employees in various industries. Provinces such as Ontario and British Columbia are especially known for their large population of young skilled tech workers who are eager to further their careers.
Unique Competitive Edge
In today's global world, companies are no longer restricted by locality and geography when hiring qualified candidates to address certain company needs. By partnering with a locally registered employer of record, you can ensure that you’re bringing a unique competitive edge to your team while staying compliant with local labor laws and regulations in your country of hire.
Cost-Effective Hiring
Engaging an employer of record services (EOR) to hire, pay, and manage your international hires is a cost-effective way to hire, as the EOR partner is already set up as a legal entity in countries such as the US and Canada.
They will help ensure that their client company is in alignment with local labor laws and workplace safety requirements and act as the legal employer for your staff in their country. An EOR will also offer global payroll solutions for company employees and take care of tax deductions and government contributions.
Differences in Taxes and Social Security
Though the US and Canada might be similar, companies should know that there are many differences between US and Canadian laws when it comes to taxation and social security contributions. Such differences can include personal tax credits, severance pay, Canadian payroll practices, the Canada pension plan and more. Partnering with a trusted employer of record (EOR) can help ensure you are familiar with the intricacies of both legal systems and help keep you compliant.
Embrace Remote Work and Maintain Local Standards with Borderless
Ultimately, an EOR Canada partner, such as Employer of Record (EOR) Borderless, is the easiest option. They can help you streamline the entire hiring experience while protecting against legal mishaps so you can focus on growing and expanding your business.
Book a demo today to see how Borderless can help you with all your international hiring and payroll needs.
