@rememberstarfox , for a foreign entity with no US presence , there may be no EIN and therefore they will have a difficulty withholding and transmitting your federal , State and FICA taxes. Generally such foreign entities, when employing an US person remotely, tend to pay directly and issue an income statement. Such case is equivalent to Self -employment in that the "employee" is responsible for making estimated payments for federal, State and FICA ---- all you have o do is make sure that the "employer " pays you his share of the FICA tax ( 15.3 % shared equally between employee and employer in case of W-2 employees). I suspect similar arrangement also makes the foreign entity's local tax reporting easier. That is my take on this
I agree with @rjs , that you need to clarify this situation with the Canadian entity.
