Hi,
My family will be relocating from the US to Canada in Spring as Permanent Residents (woo hoooo!). Her employer wants to keep her on, but on a part-time basis. So realistically $25-$40k per year. What is the best way to do this? I've received conflicting advice.
An employer of record service or PEO seems to be too expensive for a single PT employee at this compensation level.
An independent contractor option seems like it might make more sense, but I understand there could be a lot of added costs to her/us, as well as added complexity for filing taxes, charging sales tax (?) and the like. Not to mention it is technically not a contractor relationship as she'd still have her work computer, work for a single employer, who would have a say over what she does, etc.
Someone else tole me they could just keep paying her US bank account as if she was still an employee here, and there wouldn't really be any problems. This seems too good to be true, but it was someone that has experience consulting on cross-border payroll issues. It seems like the only way this would work is if my wife didn't claim the income with the CRA, which we don't want to do anything illegal like anyway.
What is the least friction path forward (for both me and my wife and her employer) as well as the option that will keep the most money in our pockets?
Thanks for any advice