Canadians frequently use the L-1 visa to transfer to a U.S. branch of their company. In many cases, the work is intermittent or part-time, such as traveling into the United States for meetings, project reviews, short-term assignments, or oversight duties. A common question follows:
- If I’m on an intermittent or part-time L-1 visa, can I switch to the U.S. payroll?
The answer:
- It depends on your specific work pattern, tax obligations, and the terms of your L-1 approval.
What Is an Intermittent or Part-Time L-1 Visa?
The L-1 visa allows multinational companies to transfer employees to their U.S. operations. For Canadians, the process is especially convenient because the application can be made directly at the border or at an airport pre-clearance location. An intermittent or part-time L-1 is designed for employees who do not work full-time in the U.S. Instead, they travel to the United States temporarily to perform essential managerial, executive, or specialized-knowledge duties while remaining primarily employed in Canada.
Can L-1 Visa Holders Move to the U.S. Payroll?
Yes, L-1 visa holders can be paid by a U.S. company. Many full-time L-1 employees are paid exclusively through
U.S. payroll. However, intermittent or part-time L-1 approvals are often based on the understanding that the employee will be employed primarily outside the U.S. and will enter the United States only for short, limited work activities.
Moving to U.S. payroll may raise concerns if it appears that:
- Your role has become U.S.-based,
- Your work is no longer intermittent, or
- You are effectively a full-time employee in the United States.
In such cases, your employer may need to file an amended or new L-1 petition to reflect your updated employment structure.
Key Considerations Before Switching to U.S. Payroll
1. Are You Now Working Full-Time in the U.S.?
If your U.S. presence has increased, such as spending the majority of your working time in the U.S., you may be expected to move to U.S. payroll. This change often requires an updated L-1 filing to maintain immigration compliance.
2. Tax Obligations: CRA vs. IRS
Switching to U.S. payroll may trigger:
- U.S. federal and state tax withholding,
- FICA (Social Security and Medicare) contributions, and
- Changes in Canadian tax residency and benefits.
Many employers keep intermittent L-1 workers on the Canadian payroll to avoid U.S. tax establishment issues.
3. Corporate Structure and Compliance
The L-1 category requires an ongoing qualifying corporate relationship. Changing payroll may signal a shift in your assignment, or operational control may require adjustments to your immigration documentation.
4. Does Your Position Still Fit the L-1 Category?
U.S. payroll is standard for full-time L-1A managers/executives and full-time L-1B specialized knowledge workers. It is less common, and sometimes problematic, for intermittent or part-time L-1 employees.
When Moving to U.S. Payroll Makes Sense
Switching to U.S. payroll is usually appropriate if:
- You are relocating full-time to the United States,
- Your U.S. company directs your daily work,
- Your duties are now primarily performed in the U.S., and
- Your employer is prepared to handle tax and benefits obligations.
In these situations, updating the L-1 ensures smooth border entries and clean renewal filings.
When You Should Not Move to U.S. Payroll
You may want to avoid moving to U.S. payroll if:
- You continue to work primarily from Canada,
- Your U.S. visits remain brief or project-specific,
- Your employer wants to avoid U.S. tax and corporate obligations, or
- Your L-1 approval was based on an intermittent assignment.
In these cases, maintaining Canadian payroll generally keeps your L-1 structure compliant.
What Canadians Should Do When Their Role Changes
If you are considering switching to a U.S. payroll, take the following steps:
- Review your L-1 approval. Ensure your employment pattern still matches what was approved.
- Assess your actual U.S. work schedule. Increased U.S. time may require an updated petition.
- Consult immigration and tax professionals. Payroll changes affect both.
- Update your L-1 filing if necessary. Keeping your petition accurate avoids problems at renewal or
during U.S. entry.
Bottom Line for Canadians on Intermittent L-1 Visas
Yes, you can potentially move to the U.S. payroll, but only if your work pattern and immigration classification support the change.
If your role has shifted toward full-time U.S. employment, a new or amended L-1 may be required. If your duties remain primarily in Canada with only short trips to the U.S., staying on the Canadian payroll is typically the more compliant option.
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JEREMY L. RICHARDS is the founding partner of Richards and Jurusik and has dedicated his career to U.S. immigration law, with a specialized focus on assisting Canadian and Mexican citizens under the United States-Mexico-Canada Agreement (USMCA) to work and live in the United States. (Full Bio)
