Home Blog

Blog

How Canadian Payroll Providers Can Benefit Your Business

Posted by Anna Mastrandrea

|

Apr 26, 2017 9:00:00 AM

How-Canadian-Payroll-Providers-Can-Benefit-Your-Business.jpgBusinesses can benefit with additional help and expertise in a variety of areas.The most common tends to be payroll, asproviders make it easy to look after your employees and manage your company’s payroll as it expands. 

Download our free guide on what US companies need to know about paying  employees in Canada.

With exceptional experience and the best practices, payroll providers know how to ease business duties. If you’re looking to save time, need some extra assurance, and want to grow your business, Canadian payroll providers are here to help.

Time and Cost Savings

It’s no secret that payroll is a time-consuming process. Hours and pay needs to be calculated, taxes deducted, overtime and stat pay added as necessary, and pay stubs issued and deposited. These duties add up, and staff are restricted when their energy is spent here instead of directed to other parts of the business, such as improving strategy, branding, and creative content. 

Payroll, a never-ending task with regular renewal, needs every piece of information be submitted correctly each pay period, and then repeated again for the next pay period. When you outsource this responsibility to Canadian payroll providers, you’ll free up time for staff who previously handled this, and can delegate their responsibilities to the money-making ventures of your operation. 

These peripheral aspects of your business are just as critical as your other tasks. When you can find ways to deal with it effectively, you’ll get more done in-house while benefiting your business at the same time.And when you replace the cost of paying in-house clerks with a flat fee each month, you’ll trim in-house salary and benefits expenses. 

Canadian payroll providers know how payroll works to adequately coverall pay cycles and bookkeeping duties, and are pros at handling the trickier parts, leaving you worry-free and ready to get back to business.

Reliable and Accurate Service

Attention to detail has never been more important than in the payroll department. Canadian payroll providers do more than get the job done, they get it right. They’ll account for all of the necessary paperwork, calculations, and timely submission. 

Should you have any questions or thoughts, they’re convenient to reach and ready to answer. They may even have suggestions and strategies to improve your current payroll methods for more effective service. You supply the hours, salary amounts, deductions, notices for holiday pay and schedules, and anything else needed for accurate payroll, and they’ll handle the rest. 

To keep your business and stay in business, their work needs to be accurate and top-notch, so rest assured this is taken care of, error free, and in line with current payroll and tax laws to ensureyour company remains compliant. With the latest technology and up-to-date tax tables, they’re guaranteed to have everything necessary to provide reliable payroll data. You’ll get the trust and expertise that comes with knowing what they’re doing is right,with the regulationsin place to be sure your payroll and taxes are in accordance with current standards.

Business Growth and Expansion

When this department is covered regarding necessary and effective measures, you can really focus on growing and improving your business. A big obstacle many businesses have is administrative, and Canadian payroll providers can help grow your business because they’re informed about registration, the laws involved, and the infrastructure necessary for establishment.

Whether you’re considering a new market or simply want to grow your current office, payroll providers are there to help, providing the right tools to expand with you and make the process as seamless as possible. With cutting-edge innovation, they never let their software go out of date, and stay on top of the latest trends in payroll to improve your business’ production for pain-fee growth and expansion.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing

How Your Small Business Can Benefit from a Canadian Payroll Service

Posted by Corinne Camara

|

Apr 24, 2017 9:00:00 AM

How-Your-Small-Business-Can-Benefit-from-a-Canadian-Payroll-Service.jpgIf you run a small business, you know how hard it is to get everything accomplished in a day. Many small business owners find this challenge easier to overcome by outsourcing certain departments to increase efficiency—with the payroll department being the most common. 

Learn how your small business can benefit from a Canadian payroll service.

Save Time and Money

No matter what size, all businesses have a common goal: increase profit and keep the bottom line strong. Payroll is a tedious, non-revenue–generating department, and enlisting a Canadian payroll service leaves your business more time to focus on its core business obligations. 

Download our free guide on what US companies need to know about paying  employees in Canada.

Research different providers to find the one that best fits your firm’s needs, and compare it against your current costs to ensure you’re getting the best deal. The plan should be costeffective for you. Time saved is money saved, and when this responsibility is removed from in-house employees, your staffwill be able to focus on principle duties, such as marketing and strategy, to grow your business. 

The time it takes to calculate wages along with the correct tax deductions, handle payroll administration, and generatemanagement reports is now handled by this service. 

In addition, the costly technology that requires regular upgrades is no longer a fee your business has to worry about, as the provider will always ensure it has state-of-the-art software for your payroll to be calculated correctly and efficiently. 

From pay stubs and T4s, to records of employment, RSPs, and benefits, all of these tasks are now taken care of by a knowledgeable provider, saving you the time and money of handling it inhouse.

Compliance Covered

Many small businesses don’t have the time or staff to handle the numerous legislative regulations dictating payroll and human resource matters. Learning and understanding the federal, provincial, and local employment and tax laws is complex and timeconsuming. With a payroll provider, compliance is covered. 

Outsourcing this duty provides you with a team of experts ready and always informed with current payroll standards and revisions. This frees you of any pressure and worry regarding incorrect tax filing, tax brackets, or employee misclassification. Errors are costly and can lead to fines, audits, and penalties. Hiring a Canadian payroll service rids your business of this headache. 

Human resources—benefits, pension,leave management, etc.—falls under this payroll umbrella, andso these tasks are also mandated by legislation.Look intoservicesthat cover these additional services to further reduce the stress of making errors in this department. 

Calculating payroll, deducting taxes, including vacation and statutory holiday pay, and even keeping a regular pay schedule are just a few of the many payroll tasks regulated by legislation thatoutlines how each function needs to be handled. With a third-party provider, you can be sure it is.

Accurate and Reliable Service

With a Canadian payroll service, you can be sure of accurate work and a readilyavailable group. These experts will always be in the loop on payroll trends and human resources. If an employee goes on vacation or calls in sick, no time is lost because this team will always be available to make sure payroll is managed and administered. Someone will always be available to talk about your business’ payroll.

The occasional mistake is human, but continuous errors are just bad business and leave you with irritated employees. Outsourcing this service ensures accurate and reliable payroll every time. Regardless of your personal or business situation, payroll doesn’t stop, and your staff expects a paystub every pay period. Focus on your main obligations knowing this one is handled correctly and taken care of. Canadian payroll services provide a service that is accurate and trustworthy—follows the law.

What US Companies Need to Know about Paying Employees in Canada

Topics: Payroll Processing

What American Companies Need to Know about Employing a Canadian

Posted by Karen McMullen

|

Apr 21, 2017 9:00:00 AM

What-American-Companies-Need-to-Know-about-Employing-a-Canadian-1.jpgHiring new employees is an exciting and busy process, butit can get complicated quickly, especially when the new employee lives in a territory outside your own. American companies hiring Canadian employees remotelyneed to be aware of the significant differences that occur when employing non-U.S. residents. 

Employing a Canadian in an American company requires compliance with certain regulations. Here’s what U.S. employers need to know. 

Download our free guide on what US companies need to know about paying  employees in Canada.

Labour Legislation Is a Provincial Matter

Unlike the U.S., employment legislation in Canada is largely a provincial matter.The federal government rules on a minority of employment issues, meaning each province has its own regulations to follow.Employing a Canadian in Ontario, for example, will have different labour rulesthana Canadian employee working and living in British Columbia. 

Where said employee works will determine the pay schedule, the applicable minimum wage rate, holiday and vacation pay, acceptable employee contract terms, and more. Provinces individually outline these minor details for legally employing Canadians, so American companies must do their due diligence beforehand to ensure they’re following the correct provincial standards.While the regulations may appear similar across the provinces, many haveminor variances. 

Agencies and tribunals that deal with work issues, whether discriminatory practices, human rights violations or other issues, also vary. Each province has its own administrative tribunal to handle these situations, and while they all do the same job in principle, each tribunal conducts business in its own way. 

Unions,as well,are governed differently in Canada. Unlike the National Labour Board in the U.S., which governs the entire country’s unionized force, Canada’s unions are run by their own trade and vary between provincial and federal positions. 

If Canadians are employed from several provinces, American employers will need to be sure each individual employee’s management is in line with that province’s human resources, employee benefits, and contractual standards.

“At Will” Termination Isn’t an Option

Should you employ a Canadian, it’s crucial to remember they cannot be terminated “at will.” Unlike U.S. employers who have this option, Canadian employers must have a legitimate reason for termination, and as such, employees are entitled to reasonable notice or pay in lieu of it. 

As legal justification is difficult to prove when firing an employee, severance packages are a popular alternative. American companies need to be absolutely aware of this to avoid lawsuits or possible discrimination charges should they need to terminate their Canadian employees. Unless they’re contractually obligated, American employers can terminate without giving sufficient reasoning, notice, or pay.

Canadian courts place a very high onus on the employer to meet human rights standards to prevent wrongful termination. American companies need to fully grasp what side courts will choose when deciding to terminate. If you’re considering hiring a Canadian employee, fully understand how termination and dismissal works.

Calculating Payroll and Taxes

It’s crucial to correctly calculate employee payroll and deduct the right taxes, in order to submit accurate remittance reports later. Canadian tax remittance reports are submitted to the federal agency namedthe Canada Revenue Agency (CRA).The CRA outlines when these reports are due based on timing and type of company, and late submissions cause problems. Canadian employees have three major tax deductions American employers need to account for: the Canada Pension Plan, Employment Insurance, and income tax. All three are deducted each pay period.

In addition, correct employee classification outlines how said employee is paid, and mistakes here can result in audits, fines, and penalties from the CRA.

American companies should also pay attention to the fluctuating exchange rate to determine the best way to pay their Canadian employees and understand all the financial obligations, including what’s mentioned above, involved when employing a Canadian.

Some U.S. employers find it helpful to outsource these tasks to a Canadian employment of record, to ensure they’re handled correctly.

12 Things an American Company Looking to Hire a Worker in Canada Needs to Know

Topics: human resources

What You Need to Know about Payroll Service Companies in Canada

Posted by Shannon Dowdall

|

Apr 19, 2017 9:00:00 AM

What-You-Need-to-Know-about-Payroll-Service-Companies-in-Canada-1.jpgPayroll service companies in Canada are an increasingly popular option for small and medium-sized businesses alike. They provide a variety of services in a timely and reliable manner, making them a great third party to work with. 

Each one has its own unique service offerings, and any business owner thinking aboutworking with oneshould know and understand the services these companies provide.

Download our free guide on what US companies need to know about paying  employees in Canada.

Payroll Service Companies 101

Payroll service companies in Canada are third-party organizations hired by small to medium-sized businesses to manage said businesses’ payroll departments. Many of these businesses find it a good alternativeto overseeing the department inhouse. Freeing up time and resources to focus on core obligations and business principles, payroll service companies relieve business owners of any pressure in correctly managing the department. 

Once a company has been accepted by the business, both parties will agree to specific details that allow the payroll companyto accurately calculate payroll, including holiday and vacation policies, pay schedule, tax information, and any other applicable policies.Afterthis is finalized and a contract is signed, it’s off to the races. 

These companies see that taxes are filed on time, payroll is calculated correctly with the right tax deductions–along with timely administering (whether by cheque or direct deposit), and financial management reports are provided. Payroll service companies in Canada offer a partnership of communication and customer service.

Handling Legal Compliance

Payroll service companies in Canada are up to speed with today’s labour and payroll legislations, and stay on top of new laws and revisions. These experts in payroll and employment law work hard to ensure your firm remains compliant with current regulations. After all, this is why you’ve hired the experts. 

You can rest assured federal and provincial requirements are met and you continue to remain within the law for paying and employing your staff. When to file taxes, how to deduct them, along with inclusion of holiday and vacation pay from wages, and employee classification are key aspects in compliance these Canadian payroll companies have expert knowledge in. 

Compliance is crucial to the payroll department, and these companies know the ins and outs of tax and labour law. This never-ending process is always handled by specialistswith the right knowledge and resources.

Research First

All payroll service companies in Canada provide the same job in principle: They calculate your business’ payroll. However, each companyhas its own additional services to offer, along with different fees and business models. Some stick to the core task of calculating and administering payroll, offering no additional benefits, while others also cover tasks inthe human resources department.

Depending on your company’s needs, you’ll have to decide what you want this company to provide you. In addition, because all firms have different fee rates or pay models, you’ll want to be sure you’re aware of all fees involvedand not blindsided by anyafter you began working with the firm. Some may offer a flat rate, while others include a monthly rate. Compare their costs against your current costsin house to ensure the best deal for your business.

You want to work with a firm you can have clear communication with and one that provides support and updateson the latest payroll trends to make sure your business has the most efficient process. They need to be true experts in their field: from calculating payroll to administering it, deducting and filing taxes, understanding the current employment and tax law, and dealing with any other issues that could crop up. Payroll service companies in Canada are a great alternative to in-house administration, but do your research first to ensure the best fit.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing

5 Mistakes to Avoid When Hiring Canadian Independent Contractors

Posted by Stacey Duggan

|

Apr 17, 2017 9:00:00 AM

5-Mistakes-to-Avoid-When-Hiring-Canadian-Independent-Contractors.jpgSometimes, employers just don’t need full-time employees but require workers for specialized projectsin shortertime period. For those looking to hire these types of worker, it’s important to make sure you understand how contractors differ from employees

Avoid these five mistakes if you’re considering hiring Canadian independent contractors.

1. Classification

Misclassification is big problem for businesses. Wrong employee labels result in serious consequences. By misclassifying, you’ve been miscalculating wages, benefits, and taxes incorrectly from the start. Canadian independent contractors are not employees, and this crucial distinction is defined by their nature within the company. 

Download our free guide on what US companies need to know about paying  employees in Canada.

Courts use a four-point test to classify an independent contractor:control, equipment and tool ownership, subcontracting ability, and profit chance/risk loss.Contractors have more independence from the employer than full-time employees. They generally own and provide the majority of the equipment and tools for the project, and theyhave the ability to subcontract some work if necessary. In addition, if they have a chance of profiting and run the risk of incurring lost profits, they’re contractors.

2. Poorly Drafted Contracts

An employee contract should be drafted in line with the provincial Employment Standards Act, and the same rules apply for contractors. If a contract is signed between the business and the independent contractor, it’s necessary to clearly indicate within that said person is an independent contractor. Clearly defining this worker within the contract helps it hold up and remain enforceable in court. This will also later help fend off categorizationissues by the Canada Revenue Agency. 

A well-written contract classifies the intention of the relationship. While courts will still consider circumstance and individual facts of the case, well-worded contracts between businesses and independent contractors better highlight theirindividualsituations.

3. Miscalculated Taxes

Taxes for Canadian independent contractors are calculated differently than employees, precisely because of their different classification. In fact, employers do not handle the tax responsibilities for contractors at all. Again, the importance of labelling workers correctly at the beginning is key for avoiding future penalties and ensuring the right amounts are calculated in final remittance reports. 

When it comes to contractors, withholding amounts, reporting requirements,and CPP and EI contributions are not deducted as with regular employees. 

Knowing the difference is crucial forensure compliance with tax regulations.

4. Wrongful Distribution of Wages and Benefits

Pay and benefits also have to be precisely calculated. Just like tax deductions, these are also totalled differently. Canadian independent contractors aren’t provided benefits. 

A contractor isn’t employed by the employer in the same sense that an employee is, so a contracto’s pay is calculated differently—they are typically paid a higher wage but they do not have deductions for benefits, pension, or anything else. An employee integrates commercial activities to the payer while independent contractors integrate the payer’s activities to their own commercial activities.

5. Miscommunicated Intention

If you’re unclear about contractors’ roles from the beginning, the intention of their business may never clear up during the project. Confusing employee status can cause problems in the working relationship.Remember that unlike with the employee, the employer has less control over independent contractors. Contractors set their own schedules, which both parties agree to. 

Contracting shouldn’t be a full-time job disguised an independent contract work–this is an incorrect intention. Employers should familiarize themselves with the legislation and policies on employees and Canadian independent contractors to ensure they clearly understand the differences between them and can clearly communicate the intent of both workers. The four-point test mentioned earlier is key to distinguishing the type of worker hired. 

Clearly understandwhy contractor services are considered independently contracted. Be clear about who you’re working with and the job needed to ensure both parties know a contractor is hired and not an employee. Miscommunication just leads to confusion.

12 Things an American Company Looking to Hire a Worker in Canada Needs to Know

Topics: Compliance

Everything You Need to Know About Payroll Services in Canada

Posted by Ray Gonder

|

Apr 14, 2017 9:00:00 AM

Everything-You-Need-to-Know-About-Payroll-Services-in-Canada.jpgPayroll services in Canada are becoming exceedingly popular with businesses. With payroll being a company’s biggest financial and compliance obligation, it can get complicated pretty fast, leaving business owners overwhelmed about how to deal with it. 

Keep reading to learn everything there is to know about Canadian payroll services.

What They Are and What They Do

The purpose of Canadian payroll services is to handle a company’s payroll department. They calculate wages, benefits, expenses, stat pay, and tax deductions, and they’ll even handle the human resources department if it’s what the company needs. 

Download our free guide on what US companies need to know about paying  employees in Canada.

The idea is to save time for business owners and relieve them of the pressure of handling the department correctly inhouse. For small and medium-sized businesses already struggling to get their work done on time with limited staff and resources, payroll services in Canada are there to take over and reduce stress. 

They also handle compliance matters; they have experts on staff who understand both provincial and federal policies to ensure your business is in line with meeting them, avoiding fines, audits, penalties, and other problems that could come up with the Canada Revenue Agency.There’s a large number of regulations to follow, all of which are intricately detailed and complex. 

Payroll services in Canada work to ease business operations by handling this department externally.They help mitigate businesses’risk with affordable, specialized expertise. They’ll handle human resources administration for companies that don’t have the time or experienced staff, and they’llensure companies are in line with current employment policies, health and safety, and other related matters.

Have Your Terms in Order

Decide for sure if payroll is something you need outsourced or if it can be adequately handled inhouse. From there, knowing what you need the payroll service to provide makes it much easier to find one. Start by making a list of services you want covered,so when it’s time to start researching, you can be sure to find the service that meets them all. From handling expenses and classifying workers to managing HR, if this is what you need, the payroll service has it covered. 

Be fully aware of the fees involved upfront, andknow whether you’re dealing with a flat rate or subscription feeto avoid being blindsided by hidden fees later. All costs incurred should be clear from the start. 

You’ll also have to have your payroll information in order to allow the provider to do the work accurately. Some information you will be required to hand over includes who needs expenses covered, who receives benefits, who receives salary vs hourly wages, and what your policies are surrounding holiday and vacation pay.

The Outsourcing Advantage

It can be costly to employ payroll staff, making outsourcinga popular alternative.Even if you’re knowledgeable, it takes time to total hours and read up on new legislation while understanding the current policies. Small companies and growing businesses need to keep up with demand and workloads, which can be hard to do with a small staff and maxed resources. 

Growth means more time dedicated to payroll and managing new employees. Most businesses can benefit from the help of a payroll provider. Employees previously placed in this department can be strategically switched to other positions where their help is desperately needed. This strategic placing helps your business when your workers can improve their skills and assist in other departments. 

A trained team of experts knowledgeable in all pay, employment, and labour laws can get everything done and ensure you’re complying with the correct standards. Payroll services in Canada will handle those peripheral tasks to save your firm time and money, allowing you to focus on the core business duties. 

Relieve the stress and pressure of getting payroll and its policies right inhouse by outsourcing to reliable specialists who are readily available.

 What Are You Leaving to Chance by Handling Payroll on Your Own

Topics: Payroll Processing

How to Find Dependable Payroll Services

Posted by Anna Mastrandrea

|

Apr 12, 2017 9:00:00 AM

How-to-Find-Dependable-Payroll-Services.jpgMany small and medium-sized businesses embrace payroll services, saving themselves time and freeing up resources to focus on core business obligations. It can be a challenge to find the right provider though. While a Google search will bring up a number of options, you want to be sure you pick the right fit. 

Dependable payroll services are easier to find than you think.Before settling on a provider, know exactly what you expect of them to make sure you find the best service for your business.

Download our free guide on what US companies need to know about paying  employees in Canada.

Determine Your Business’ Needs

Knowing your business’ needs ahead of time will help you find a reliable payroll service.It’s hard to find the right provider for your company if you’re unsure about what exactly you need done. The right payroll service should be able to handle any issues you throw at it, with competency in all payroll topics, such as protocol, human resources, taxes, labour regulations, and other legal concerns. The more the provider knows, the less you have to worry. 

The right payroll service creates a partnershipwith your business, one with excellent customer service and communication. The service should be a complete expert in all payroll fields and the related human resources department. If you need HR covered as well, you’ll want to establish this so when you look for firms, you choose the right one. 

Mapping out your needs ahead of time will give you a clear visual of exactly which functions you need this firm to manage. Know how much you’re willing to spend and the work that’ll be provided for the fee. Consider how you plan to grow your business over the next while—whether it’s an increase or decrease in staff, so you can find the right servicefor the scale of your company.

Is This Cost Effective?

Dependable payroll services should be cost effective for your business. There’s no sense in using this service if it’s going to cost you more than it would to handle the department yourself—that defeats the purpose. Research the various payroll services out there to determine which one has the best pricing for its services.That price point should cover all the duties you need: payroll protocol, some HR responsibilities if necessary, related paperwork, and even legal advisory services. 

If you fall prey to accounting errors, you’ll face penalties and fines from the government.On a tight budget, these are fees you can’t afford to have. Your margins are already small. Handling payroll using dependable payroll services will help your bottom line by ensuringemployees aren’t over or underpaid and that they receive the right tax deductions. 

Confirm whether the service charges a monthly fee versus a flat rate, and be upfront about the costs involved to avoid any confusion later. 

Payroll services help cut costs in other areas of the business as well because a provider will offer accuracy and compliance toavoid miscalculations and fines. Payroll service fees should be lower than the cost of paying an in-house clerk, which will save you on the costs of a salary, benefits, software, related equipment,training, and maintenance.

Compliance Experts

The legal field surrounding payroll is quite complex, and dependable payroll services relieve you from the stress of understanding intricate employment and tax regulations. With these services,you’re working with experts to relieve you of any headache, knowing your payroll department is accurately managed.Compliance issues, related paperwork, and tax regulations are covered by a team of experts who know the ins and outs of this department and keep up with changing policies. 

Their skills and specialization allow you to stopworrying about costly payroll and tax mistakes that can damage your business’ reputation. They know how to accurately calculate wages, deduct the right taxes, and apply expenses and benefits,leaving your firm in the clear. Dependable payroll services know and understand these laws so your business doesn’t have to worry about it.

7 Signs It's Time to Outsource Payroll

Topics: Payroll Processing

5 Key Differences Between Canadian & US Employment Law

Posted by Anna Mastrandrea

|

Apr 10, 2017 9:00:00 AM

5-Key-Differences-Between-Canadian-&-US-Employment-Law.jpgWhile Canada and the U.S. are similar in many ways, their individual employment legislation could not be more different. Here’s five key differences between the two countries’ employment law.

1. Agreements

Non-competition and non-solicitation agreements are quite different between the two nations. While Canada offers leniency, these types of agreements are more narrowly written in the U.S. 

Download our free guide on what US companies need to know about paying  employees in Canada.

Restrictive covenants are much harder to enforce in Canada because Canadian courts work to balance the interests of an individual’s ability to earn a living with the employer’s proprietary rights. Neither one trumps the other. Canadian courts will enforce reasonable non-compete and non-solicit clauses so long as time, geography, and the nature of protecting the business doesn’t unduly limit the employee’s ability to secure employment. The States places a higher emphasis on the protection of trade secrets, versus the balance seen in Canadian employment law. 

Canadian courts don’t “blue pencil” restrictive covenants. If a clause in the agreement is too broad, the covenant is completely stricken. U.S. courts, on the other hand,will modify the clause in question, particularly if it’s “blue pencil”. Be sure to check with the appropriate state and provincial legislation for individual specifications.

2. Minimum Employment Standards

Federal and provincial statutes outline the minimum employment standards in Canada. Federal, state, and local law outline them in the U.S. 

Canada’s legislation sets a minimum requirement to redress the imbalance of bargaining power between employers and employees. Along with each province’s administrative tribunals, they work alongside the legislation to address employee issues. Employers who don’t comply find with the tribunals themselves facing legal sanctions. 

The U.S. by contrast defines minimum standards through “exempt” and “non-exempt” categories, notably where salaried employees are typically exempt from overtime pay. This distinction doesn’t exist in Canada. Unless the position is truly executive or managerial, everyone is entitled to receive overtime in Canada. Whether the position falls into this category is based by analyzing the job’s duties.

3. Labour Relations and Unions

Canada is very pro-union, with a higher union rate compared to the U.S. The labour relations legislation in Canada reflects this union-friendly bias, noted particularly in sale or acquisition of business.

In Canada, when sale or transfer of business occurs, the union carries over the collective agreement and bargaining rights to the new employer. Contrast this with the U.S., where the acquiring employer doesn’t always receive the predecessor’s collective agreement or duty to bargain.

Canada’s Charter of Rights and Freedoms includes the right to join the union to bargain collectively and in good faith. The U.S. Bill of Rights, “freedom of association”, is much more limited in comparison.

4. Employment Litigation

Jury trials are rarer in Canada, and the threat of a class action lawsuit is not as large. Costs recovery in litigation and counsel is much higher compared to the U.S., so many are hesitant about bringing a case before the courts.

Much of the damage award is considered predictable in Canadian courts and quickly solvable. This is unlike the States, where most cases seem to involve human rights, resulting in large damage awards and costly settlements. In relation to this, lawyers’ fees are generally recoverable from the losing party and punitive damage awards pale in Canada when compared to the U.S.

5. Termination

Canadian employers are required to give reasonable notice or pay in lieu of it, as stated in common law or the employment contract. U.S. employment law allows termination “at will,”where a notice of termination is only required if it’s company policy or stated within the contract.

“At will” is subject to terms of the written agreement, discrimination, and certain other exemptions. Generally, U.S. employers can just let employees go, unlike their Canadian counterparts, where the approach is very different.This is where employee contracts are important to review. They’ll outline the minimum requirements and indicate what the employee is entitled to.

What US Companies Need to Know about Paying Employees in Canada

Topics: Compliance

How a Payroll Company is Different from an EOR Service

Posted by Ray Gonder

|

Apr 7, 2017 9:00:00 AM

How-a-Payroll-Company-is-Different-from-an-EOR-Service.jpgThere’s plenty of options for companies looking to outsource some of their back-end functions and administrative tasks. But no two companies are the same, and before you hire the first hit on Google, it’s important to research ahead of time to ensure you hire the right company–one that fulfills your business’specific needs. 

Knowing how a payroll company is different from an EOR service will help your business make the best partnering decision.

 

Download our free guide on what US companies need to know about paying  employees in Canada.

Job Description

A payroll company focuses on payroll tasks specifically. It’s a much narrower construction. Their solutionis to give businesses the tools necessary to calculate accurate payroll. Payroll companies process the payroll information given to them, but it’s up to the business itself to ensure they’re complying with legal regulations and tax standards. Payroll companies remove the burden of administering payroll and running reports by providing the right technology–something many small and medium-sized businesses can’t afford to do in-house. 

In contrast, an employer of record, or EOR service, takes the extra step. On top of handling the organization’s payroll, they also ensure the business is meeting the current tax and employment standards. They’ll also look into business registration and expansion for companies moving into a new territory. EORs will fill out the paperwork and save time by taking care of the non-revenue generating tasks. 

An EOR offers a co-employment deal. These organizations assist with hiring, retaining, and paying employees. They work with the business to manage its peripheral tasks: human resources, expansion, legal compliance, and payroll. With market knowledge and expertise in payroll compliance, they’ll ensure your business is following all necessary regulations to a T.

Reliability and Legal Responsibilities

A payroll company’s main duty is providing the software and tools for calculating payroll correctly, versus ensuring the company is in line and compliant with the correct tax law. An EOR service provides a team of experts who know the provincial and federal tax laws to properly handle remittance reports and wage calculation. 

An EOR also offers services in human resources and are up-to-date with the current employment standards to help businesses with employee negotiations and general support issues. While a payroll company stops and starts with the tools needed, an EOR takes those tools and assumesthe responsibility of meeting each rule. 

Payroll companies handle the basic functions associated–paperwork, administering and printing cheques, running remittance reports. While they still cover time-consuming processes, EOR services will ensure these tasks meet the necessary legal obligations.

Perks and Benefits

A payroll company offers the benefit of saving businesses time and headache from calculating payroll. An EOR service can offer employee benefits and packages in addition to this.

These extra services are generally not a part of the payroll provider’s task. EORs though, offer additional compensation, such as administering RSPs, employee healthcare benefits, dealing with workers’ compensation, and related perks. Payroll providers achieve easy set-up and quick solutions–providing benefits require more time and work. As such, it’s not a service payroll companies provide. An EOR is tailored to meet the specific needs of the business, which caninclude adding extras services on top of providing the best payroll solution.

The easiest way of differentiating a payroll company from an EOR service is that payroll providers focus more on easing payroll duties specifically. Their tasks are related purely to payroll without any extras. An EOR service provides the extras: On top of handling payroll, they ensure the business complies with the correct legislation, they can manage the HR department, and they act as a co-employer to handle administrative business issues with ease.

7 Signs It's Time to Outsource Payroll

Topics: Employer of Record

How Do I Terminate an Employee Who Isn’t Working Out?

Posted by Stacey Duggan

|

Apr 5, 2017 9:00:00 AM

How-Do-I-Terminate-an-Employee-Who-Isnt-Working-Out.jpgIt happens. You hire someone who appears to be the right fit with the right qualifications. Shortly after they start though, it’s a disaster. Incorrectly firing personnel is bad business, so how can you fire staff without getting into legal hot water? You have to cover all your bases to ensure you correctly terminate an employee, and protect your business.

Timing

Employers have to be incredibly careful when deciding to terminate an employee. Ideally, the sooner you can terminate an employee, the better. The standard 90-day probation period generally lets employers off the hook for firing, however, confirmwith the correct legislation in case a period of notice, or pay in lieu of,still applies. Firing an employeewithin this period can also leave employers vulnerable to backlash comments that this intervalis a training and skill-testing period, but generally, employees fired at this time have no right to appeal.

Firing a staff member after probation requires a reasonable notice period.Various factors will determine how long reasonable notice is: age, years of service, their character, and availability of similar jobs. Employees are still entitled to receive compensation and benefits for a sustainable period, as if still employed by the employer.

Download our free guide on what US companies need to know about paying  employees in Canada.

Comply with the Employment Standards Act

Review all the various laws to ensure you can terminate said employee and have met the provincial legislation standards to avoid possible lawsuits and legal penalties. Each province has its own labour law or employment standards act to follow, which specifies whether the employee has to be paid out or not. They also outline the minimum standards of pay and benefits employees are entitled to receive upon leaving. 

When you terminate an employee, their severance package must meet these minimum requirements. Ensure you’ve followed the provincial legislation, your employer handbook, and the employment contract prior to firing. If necessary, obtain legal advice to confirm you’ve covered your bases.

The Employment Contract and Termination Letter

Complying with the correct terms of the employment contract is key to verifying termination. Employment contracts need to be reviewed to make sure you’re not breaching any terms, and the contract will spell outspecific provisions regarding termination. Examining this document first ensures you have legal grounds to fire this employee.You may also need to confirm the employee was given proper warnings and a chance to improve, and that regular performance reviews were conducted along with meetings and chances to explain, if necessary.

Keep in mind that termination clauses in contracts may vary depending on who drafted it. Courts have the power to set aside documents that don’t meet the provincial requirements, so it’s important your employment contracts meet minimum standards in initial drafts to avoid future legal disputes. Improperly drafted contracts that fail to meet ESA standards can be thrown out.

After reviewing the contract, draft the termination letter. The termination letter must be ready when you call the meeting with the employee, and after you’ve inspected the employment contract. It should specify the end date, and clearly communicate that this is termination, to avoid confusion of it beinga disciplinary or time out period. Details about the amount of notice, payment in absence of, and severance package will be noted here.If your letter offers benefits above the requirements outlined in the ESA, have the employee sign a release in exchange for receiving the statutory amounts. This ensures full coverage and future liability for your business. This option is completely discretionary to employers.

Once you’re legally and ethically clear to fire, deliver a termination notice and hold an exit interview to explain to the outgoing employee the reasons they are being let go. It’s not easy firing staff, but at the end of the day, it’s just business.

7 Signs It's Time to Outsource Payroll

Topics: human resources

Subscribe to Email Updates

Recent Posts

Posts by Topic

see all