Do you employ people in Canada but have your head offices located in another country? Maybe you’ve hired some temporary or contract workers to complete projects for you. Whatever the situation, you may be wondering about Canadian employer of record services for your business.
What Is an Employer of Record?
When you hire workers in another country, you may not want to be responsible for them—you want the work to be completed, but you don’t want to have to deal with hiring, termination, payroll, taxes, or any HR compliance. You don’t want to worry about a new country’s tax code or employment standards.
Of course, someone has to be responsible for issuing payment, withholding taxes, and so on. Someone must be listed as the employer. An employer of record provides this service to you. They’re listed with the Canada Revenue Agency as the workers’ employer, hence the name “employer of record.”
What’s the Difference between an EOR and a Staffing Firm?
Some people believe employers of record are the same as staffing firms. While they may be similar or offer similar services, there are some key differences between these organizations.
A staffing firm will hire and place employees with your business. They may include employer of record services as part of their client offerings, but not always. In Canada, these services don’t need to be offered by a staffing firm. The two are different businesses entities, although employers of record often work with staffing firms.
What Can You Expect?
If you’re interested in Canadian employer of record services, you may be wondering what you can expect and why you’d choose these services over another option.
Canadian employers of record provide comprehensive payroll and HR services for your business. They act as the legal employer of the workers, taking the load off your in-house team. This is particularly useful for employers who hire employees on a temporary basis or hire workers in different jurisdictions.
These services allow another entity to act as the legal employer to your Canadian employees. They handle payroll, including taxes and withholdings, the calculation of vacation time and pay, and so on. They won’t, however, handle the day-to-day management of your workers.
Work with an EOR
Canadian employers of record handle everything you’d need to, without you needing to worry about the ins and outs of Canadian payroll or varying legislation in different provinces. Since the employee technically isn’t yours, someone else is legally responsible.
They’re also a great option whether you work with a staffing firm or not. If you’ve been wondering how you can minimize the burden on your payroll and HR team while ensuring you stay compliant in a new jurisdiction, consider Canadian employer of record services for your business. It could just be the right solution.