Canada Resdient on US payroll w\ NV Mailbox

[ed_accountant]

Hi,

I have Corporate client asking me if this is correct:

The corporation doing business primarily in California and other states hired Canadian resident who is using a Nevada PO box as his US address for payroll purposes however performs all the work in Canada from home. The Canadian employee reports the US income to Canada and files a US return and get taxes twice and Canada credit for the US taxes.

Can the Canadian have the NV residency for US filing or should he be subject to California withholding? Any other issues?

Doesnt this happen all the time with the retired folks that live in their RVs and travel accross the US having their mail forwarded to NV?

Thanks