American working in Canada & Taxes

[Sherril]

U.S. citizen, living in U.S., working as Independent Contractor in Canada (with work permit) has been told he will not be rec'g a T-4 form from Canadian Co. No taxes have been withheld. All of his work has been with the same Canadian co and his wages have been directly deposited into his Canadian Bank checking acc. This he shall use as his total CA 2013 income.
1-Does client have to file Canada Income taxes (what forms)?
2-Is there a link with Canadian information on this matter?

[Koss]

Canada

I can almost guarantee that he will need to file a Canadian tax return. Based on your facts, he is a nonresident of Canada. Is the guy commuting, from Detroit, or from New York? Or is he somehow working remotely?

He will need to file a Canadian tax return, but that doesn't mean he will actually have to pay tax. That's a different question. You'll want to start your research by looking at IRS Publication 597, Information on the United States - Canada Income Tax Treaty.

Does he even have a Canadian Social Insurance Number?

Hope you get well paid on this one.

BMK