The Canadian economy has seen steady growth in recent years, with 2017’s 3.1 percent followed up by a still considerable 2.2 percent this year. Now is perhaps one of the most promising times to think about expanding your US business across the border. Before you proceed to make your brand’s name known in Canada, however, you need to ask yourself one key question: do you have the right infrastructure?
Yes, there are similarities between US and Canada regarding culture and trade agreements, but your business will be off to a bad start if it disregards the variances in legislation for operating in Canada. In order to be a successful US branch in the north, you’ll need to consider opting for payroll services in Canada.
How important is obtaining payroll services in Canada for your business expansion? Read on to learn how proficient payroll services can make your expansion all but seamless.
Payroll Isn’t Just about the Pay
We know that sounds counterintuitive, but it’s true; having successful payroll services in Canada isn’t just about printing and distributing your employees’ paycheques on time. You need to ensure your business is registered as a Canadian company, and you must open and maintain all necessary accounts for operating lawfully.
You’ll need at least a banking account, a CRA account (for payroll and tax deductions), Worker’s Compensation program to protect your employees if they are made financially vulnerable from work-injuries or occupational illness, and an account with the Ministry of Labour.
In addition to this, you’ll need to consider that some of these accounts will be subject to different legislation depending on what province or territory you want to expand into. Before you can even think about hiring employees, you need to establish a Canadian administrative presence first. Those who specialize in payroll services can streamline this process for you, allowing you to concentrate on your expansion strategy instead.
Onboard Employees According to Standards
Hiring your first Canadian employees comes with many responsibilities, all of which can’t be put off to a later date. You must conduct employment negotiations regarding duties and compensation, draw up and get signatures for several agreements, and put together satisfactory compensation packages for candidates.
Now is the time in your expansion process that you should pay special attention to compliance for minimum wages and ensure that important forms for tax remittance (like a new hire’s TD1) are filled out. You can’t afford to make mistakes that can lead to non-compliant employment standards. Misclassifying your employees as independent contractors, for instance, can lead to monetary penalties and brand-ruining prosecution.
The right payroll services processor will also be an employer of record and act as the legal employer to your employees, deftly handling all the ins and outs of hiring, managing, and paying Canadian employees so you can focus on your core business activities.
Thorough Payroll Management
The best payroll services in Canada help with your US business expansion from the ground up. When you have an administrative authority that can handle both your HR and the compliance factors of your payroll, benefits, taxes, and more, opening a Canadian branch is simple. You don’t need to fuss about T4s, ROEs, paystubs, and employment verification paperwork because payroll services act as an integrated part of your daily operations.
Fully compliant remittances, payroll data reviews, and management of invoices and paycheques are just a few of the ways that payroll services keep your business all squared with the Canadian government.
Keep in mind, this is just the tip of the iceberg when operating a business branch in Canada. If you want to learn more about how best to pay a worker in Canada, you should consider discussing the matter with payroll services experts today. You might find that partnering with such experts is the key to growing your business in the north.