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Calculating Canadian Payroll Deductions is Only Half the Battle

Posted by Stacey Jones


Mar 3, 2014 9:00:00 AM

Calculating Canadian Payroll Deductions is Only Half the BattleSome businesses are under the impression that Canadian payroll deductions will make up the majority of the red tape they have to deal with. While Canadian payroll deductions can be incredibly complex, they’re still just a drop in the bucket compared to all of the other legal and administrative hoops you’ll have to jump through. Long before you have to worry about Canadian payroll deductions, you’ll have to worry about meeting all of the legal requirements to get your business up and running. Meeting those requirements initially, and continuing to meet them for as long as your business operates, can be far more difficult than worrying about Canadian payroll deductions.

A Daily Struggle

Whether you’re a US or Canadian business, there are certain tasks that you will be expected to perform every day to keep your Canadian operations in compliance. Timekeeping, employee classification, workplace safety, and providing legally required documentation are just a few of the tasks on your agenda. You’ll also be required to provide health and safety training for your employees and deal with any jobsite inspections that different government agencies deem necessary. Once you’ve successfully completed all of those tasks, you can start in on all of the things that actually make your business profitable.

An Added Burden

If you’re a US business operating in Canada, then the legal hurdles become higher and more frequent. Before you ever have to worry about Canadian payroll deductions, you’ll have to establish a business that can legally hire Canadians. That means establishing a physical presence in Canada, setting up banking and government accounts, procuring proper insurance, dealing with inspections and licenses, and meeting any other industry-specific requirements. You’ll spend a lot of time and money, long before you can legally start operating in Canada. If you choose to handle everything on your own, you’ll have to learn an entire foreign legal system in your spare time. If you miss anything or make any mistakes, the time and costs will increase dramatically.

A Single Solution

Fortunately, there’s a single solution for US and Canadian businesses. The Payroll Edge is a payroll service provider that provides all of the administrative and management services a business needs for its day-to-day operations. These services include everything from workplace health and safety compliance, to those Canadian payroll deductions you were so worried about. They can even handle hiring, classification, and management of employees.

If you’re a US business moving into Canada, The Payroll Edge can act as an Employer of Record (EOR) for your expansion. Using their EOR services, you can avoid all of the red tape and legal hurdles involved in setting up shop in Canada. An EOR provides you with everything you need to get up and running in Canada. They have a physical presence, all the necessary government and banking accounts, and the legally required insurance. When you hire an EOR, they can immediately begin hiring and managing Canadian employees on your behalf. You won’t have to spend months setting up shop and learning a new legal system. With the help of an EOR, your Canadian expansion requires little more than a telephone call.

Canadian Payroll Tax Deduction Calculator

Topics: Payroll Service Provider, Canadian Payroll Deductions, U.S. Business operating in Canada

Stacey Jones

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