Yahoo Finance Canada may soon have an influx of tech workers from U.S.
In the face of immigration concerns and unstable border crossings to the U.S. for international workers, a Canadian company has found a niche in the market.
True North bills itself as a “turnkey backup plan for H-1B holders working for an American company.”
Launched just last week in anticipation of changes that may affect temporary workers, it’s designed to appeal to the Silicon Valley tech industry, whose foreign workers often have these non-immigrant, specialty visas.
The services allow employees to “immediately” get the paperwork to continue their work for American companies while living in Vancouver, avoiding disruptions.
Why Vancouver?
“Vancouver emerged as the logical destination because our goal was to keep the teams that were impacted together in one location whenever possible,” explained Michael Tippett, co-Founder at True North. He says the city is “a top choice because we have the right immigration policy, a burgeoning tech scene and we are due north of San Francisco and on the same time zone. Typically the people moving from the Bay Area are used to the kinds of real estate prices that Vancouver has.”
How Does it Work?
Whether employees are part of a startup or a large established company, “you can keep your current job with your current employer but have the option to work via a wholly owned Canadian subsidiary.” Even if U.S. regulations change, you should be protected as a Canadian worker.
“We can immediately accommodate people who wish to leave the country indefinitely now or who are unable or unwilling to re-enter the U.S.,” says True North.
Requirements?
Employees will need a valid H-1B, a non-immigrant visa that allows workers to enter the U.S. temporarily to work in specialty fields that require theoretical or technical expertise in specialized fields such as in IT, finance, engineering, mathematics, science, and medicine.
The employer will have to incorporate a subsidiary in Vancouver.
What does it cost?
This level of convenience comes at a price. The company’s package is $6000 per person, which includes airfare for one person to Vancouver, two nights accommodation, a day with immigration professionals, and setting you up as an employee of your company’s wholly owned Canadian subsidiary. The price can be adjusted for groups. Tippett explained that typically the employer pays the fee, and in some instances there are extra costs, “which are spelled out before the process begins.”
Is this a new service?
While True North’s package deal is brand new — its cofounders “began discussing the project only 4 weeks ago,” says Tippett, there are many non-Americans working for American companies.
There are generally two ways to work for an American company while living in Canada.
An individual can work as a contractor, billing the company for their work. Getting paid in U.S. dollars is appealing when the Canadian dollar is low in comparison, but you’d be subject to fluctuations in your pay. These workers would also be responsible for paying their own taxes and wouldn’t be eligible for the usual benefits Canadian employees enjoy, such as parental leave, employment insurance and the Canadian Pension Plan.
The second option is for the U.S. company to set up a Canadian subsidiary that their Canadian employees would work for, which helps ensure that the company is in compliance with Canadian employment laws. Vacation pay, holidays and taxes would be based on local regulations. Typically they will outsource payroll and benefits to a third parties within Canada, and these employees are not considered foreign workers, since they’re technically working for a Canadian company.
Using dedicated services within Canada can help U.S.-based companies ensure that they’re not running afoul of laws in their own country, nor creating a problem with the CRA, who are said to be cracking down on companies that try to circumvent the laws. Companies can face fines, payment of back taxes and even criminal charges for failing to follow local laws.
