A PR holder whose original India-based employer offered to keep them on as a contractor while working from Canada asked what to watch out for, including whether contracting risks their PR status and what documentation the employer needs to provide.
What the group advised:- You need to pay Canadian taxes on the hours and salary you actually work, tied to your SIN. One practical way members handle this is bringing in an intermediary Canadian consultant/payroll service so your hours and pay are properly recorded and taxed in Canada, rather than being paid informally from abroad.
- Working as an independent contractor is generally allowed, but check your province's specific rules. Independent contractor status has its own regulatory and tax obligations that vary by province, so confirm the requirements where you live before starting.
Practical takeaway:- Don't just accept payment directly from a foreign employer without routing your work and pay through a proper Canadian tax/payroll mechanism tied to your SIN — this protects your ability to meet PR residency and tax-reporting obligations.
- Look into using a Canadian intermediary consultant or umbrella/payroll service if your original employer isn't set up to pay you as a Canadian resident.
- Review your specific province's rules on independent contracting before finalizing the arrangement.