Home Blog

Blog

What's the Difference Between PEO vs. Employer of Record?

Posted by Stacey Jones

|

Jul 11, 2019 10:54:16 AM

Did you know businesses that partner with a professional employer organization can expect to grow up to 9 percent faster than those who don’t?

These statistics may have you wondering if a PEO (professional employer organization) partnership is right for your business. Within HR circles, though, you might have heard the term “employer of record.” Some people use these two terms interchangeably, but they’re actually two very different entities.

What can you expect working with a PEO vs employer of record? The differences might surprise you.

PEO vs Employer of Record Relationships

The most fundamental difference between a PEO and an employer of record is how either organization relates to your business and your workers.

An employer of record assumes all legal responsibility for the people who work for you. They are, in effect, the employer. They’ll handle almost every task related to hiring, termination, and everything in between. Your workers will answer to the employer of record.

A PEO, on the other hand, becomes your co-employer. Together, you’ll handle HR tasks related to employment.

Who’s Driving?

Another way to think through the differences between a PEO vs employer of record is to consider the subject of control.

With an employer of record, you have relatively little say. The EOR assumes responsibility for hiring and employment contracts, as well as benefits, insurance, and even business registration. This can be a good option for employers who want to enter a new state or country, but don’t necessarily want to set up shop there.

When you work with a PEO, you’ll have much more control over HR processes. The PEO offers valuable advice, but you generally have full control over hiring and employment contracts. The PEO may offer you access to insurance or benefits plans as well.

Think about Your Needs

The best way to settle the PEO vs employer of record debate in your business is to ask what you need.

If you plan to open a new branch office or establish a subsidiary, a PEO might be the right partner for you.

A PEO is also the better choice when you want to stay in the driver’s seat, but expand your HR capabilities. The PEO is there to help you maintain compliance with local employment laws and enhance your HR capabilities.

For this reason, a PEO is a better long-term solution than an EOR. If you just want to get people hired on quickly, an EOR might be the right move for your business.

An employer of record also reduces your liabilities when you enter a new market. Since they assume the employment relationship, the EOR alone is responsible for compliance, insurance, and employment contracts.

Expanding Your HR Operations

Perhaps the biggest advantage of working with a PEO is that it could help expand your HR team almost instantly. Many small and medium-sized businesses can offer much more to their employees when they work with a PEO than they could otherwise.

The employer can also find a balance between managing their responsibilities on their own or giving up control.

A great example is payroll. A PEO will administer payroll for your employees in compliance with all the local laws. Your HR team doesn’t need to get bogged down in the details of learning Canadian payroll, but they can rest assured it will be done correctly every time.

Which Is Better?

Many HR experts ask this question, and the answer is always “it depends.” Choosing to work with either a PEO or an employer of record means carefully examining your business needs.

If you haven’t determined which is the best choice for you, get in touch with the experts. They can help you assess what your business needs and goals are, then help you decide which solution is the right fit.

 

Topics: PEO, Professional Employer Organizations, Pay International Employees, Employment of Record Services

The Complexities of Workers’ Compensation in Canada

Posted by Anna Mastrandrea

|

Jul 3, 2019 9:06:00 AM

Compensation-ComplexitiesAmerican companies and international employers that have US operations often see Canada as a logical next market. One of the challenges they face when expanding to Canada, though, is navigating the differences of Canadian employment law.

There are numerous examples, but one of the standouts is how workers’ compensation functions north of the 49th parallel. For many employers, a lack of experience can lead to hefty noncompliance fines. If you’re planning to expand to Canada and employ Canadian workers, here’s what you need to know.

Workers’ Compensation Is Government-Run

In the US, workers’ compensation programs vary from state to state. In a handful of states, workers’ compensation insurance can only be purchased from a state-run program. In other states, the government-funded program operates alongside plans offered by private insurers. These funds may be an option for high-risk employers who can’t be insured by private companies, or they might be used to cover companies that fail to purchase insurance.

In Canada, the situation is quite different. Each province in Canada has its own insurance program, which every employer must use. There are no private options for workers’ comp insurance in Canada.

Where to Register

As mentioned, each province in Canada operates its own program, with its own rules, to compensate injured workers. As a result, an employer must open an account in each province they plan to operate in.

For example, an employer in Ontario must register with the Workplace Safety and Insurance Board (WSIB). Their account will provide insurance for their employees in Ontario.

If this employer then opens a branch in Alberta and hires employees there, their WSIB insurance doesn’t cover them. The employer has to register with Alberta’s Worker Compensation Board to provide insurance for their Albertan employees.

When to Register

To make matters more complicated, not only do you need separate accounts for each province you operate in, each province has different rules about when and how to register.

In Ontario, you can’t apply for an account with WSIB until you have an employee start date. In Alberta, you can pre-register for an account and hire employees later on. In Nova Scotia, you could delay opening an account until you have three employees.

It’s important to check the rules about when you’ll need to register. In Ontario, you must register once your first employee starts. If you waited until you had hired three people, you could face hefty fines. Alberta’s pre-registration provides even less leeway for employers. You may open an account when you begin hiring employees, but you have no reason to delay.

Who Needs It

Workers’ compensation insurance protects both businesses and employees. Employees can receive compensation if they’re injured or become ill on the job. Business owners avoid costly lawsuits.

That said, which companies need to register for workers’ compensation insurance does vary from province to province. In most provinces, sole proprietors with no employees don’t need to register for an account.

The rules are a little different in the Northwest Territories, where every business must register within the first 10 days of starting operations. In British Columbia, almost every employer has to register, including people who are building their own homes.

In Nova Scotia, a few businesses are exceptions to the three-or-more employees rule. If you work in the fishing industry, for example, insurance is mandatory. The same is true in the restaurant business.

A Guide Through the Labyrinth

As you can see, the situation around workers’ compensation is quite complex in Canada. If you’re working in two or more provinces, or you’re feeling unsure, get a helping hand by working with an experienced employer of record. They can help you navigate the compliance maze, avoid penalties, and ensure you have the right insurance for your business

 

5 US Employment Laws You Might Be Breaking

Posted by Ray Gonder

|

Jul 2, 2019 9:03:00 AM

Employment-LawsInternational employers face a maze of regulations when they hire American employees. With more than 100 federal US employment laws out there, it’s difficult to be sure you’re observing every law on the books.

While you may be aware of some of the major laws, such as minimum wage rules, others might have slipped under your radar. Here are five US employment laws you could be breaking.

1. US Employment Laws Restrict Terminations

American employment law doesn’t dictate severance for employees and is usually thought to be “at will.” If you no longer need an employee, you can let them go without notice.

That doesn’t mean you can fire someone for no reason. If you dismiss someone without good reason, you might find yourself in a wrongful dismissal suit.

The National Labor Relations Act protects employees against unfair labor practices, which can include letting someone go without good reason. You also can’t fire an employee over lawful, yet unhealthy, behavior during off-hours.

You may also be required to negotiate extended medical leave for employees under the American Disability Act, above and beyond their 12-week unpaid leave under the Family and Medical Leave Act.

2. Unpaid Breaks and Off-Hour Work

Another concern for employers and employees alike is the time they’ll be paid for. As an employer, you might find yourself on the wrong side of the law if you choose not to pay your hourly employees in certain situations.

Under the Fair Labor Standards Act, an employee who works through an unpaid meal break must be paid for the time they worked. If you automatically deduct a lunch break from employees’ wages, you could be breaking the law.

You may also be in the wrong if an employee is working during off-hours if there’s reason to believe you knew they were. If an hourly employee is answering your emails or finishing up a task that will take a substantial amount of time, you must pay them.

This is especially important in the age of remote work and cellphones. Your employees could be working at almost any time of day. Carefully monitor when they’re working, and be sure to establish clear rules about work hours, flex time, and off-hours.

3. Asking About Medical History

This law is particularly important for international employers who are currently hiring. Under the Genetic Information Non-Discrimination Act (GINA), you can’t ask an employee about family medical history.

This doesn’t just apply to the hiring and interview process. No employee should be asking another about family medical history. The exception is informal discussion, such as chats in the break room.

Other details are also off-limits, such as marital status and sexual preferences. This law and other US federal employment laws attempt to establish safe working places free of discrimination. Employees who are asked for this information and are later discriminated against in employment could sue.

4. Whistleblowers Are Protected

Revisiting termination rules, you’ll want to be aware of the various whistleblower laws on the books in the US. If someone raises a red flag about the way your business is operating, you can’t simply fire them over it.

You also can’t take action against them for reporting about unsafe conditions, including harassment and financial wrongdoing. Taking retaliatory action against these employees could land you in even more trouble.

5. The ADA Protects More Americans

As an employer in the US, it’s your job to reasonably accommodate employees, particularly those with disabilities. Someone who complains about a scent in the office might have a disability. The same is true of an employee who fails a mandatory drug test due to a shy bladder.

With more conditions considered disabilities than ever before, you may need to provide accommodations for more employees than you think.

If you need a hand navigating US employment laws, get in touch with the experts. They can help you employ Americans without legal headaches.

 

Who Uses a PEO?

Posted by Anna Mastrandrea

|

Jun 19, 2019 9:00:00 AM

Who Uses a PEOIf you’ve expanded your business in any capacity over the last few years, you’ve likely heard about a professional employer organization, or PEO. More business owners and HR managers are interested in what a PEO can do for them.

Download our whitepaper "7 Tips to Help You Hire the Right PEO" today!

You’re wondering if working with a PEO is the right fit for your business. Do you match the profile of the kind of business that benefits from a PEO partnership?

You might be surprised to learn who uses a PEO.

Small Businesses Benefit Most from PEOs

If you’re planning to expand your business in any capacity, working with a PEO might be an option to consider.

The PEO already has the infrastructure in place to help you expand your workforce from five to 25 and beyond. They provide a robust set of HR solutions smaller businesses just may not have access to.

For example, you may want to provide health benefits for your employees, but you don’t have the capacity to administer the program. Working with a PEO to set up a health savings account could be the answer you’re looking for. The PEO can access better pricing on behalf of their clients, and their expert team are able to administer the program.

Banking, insurance, and other infrastructure are all available to you when you work with a PEO.

Large Businesses Work with PEOs

While small businesses may benefit the most from partnering with a PEO, big businesses are also discovering the advantages of working with a professional employer organization.

PEOs have created infrastructure that’s designed to scale, which means they can administer payroll for 500 employees as easily as they could for a business with just five workers.

Larger businesses often find this helps them realize efficiency within their own operations, especially as they continue to expand. Rather than tying up their HR team with payroll every week, they can partner with the PEO to provide these vital HR services. It also allows them to expand their team to support further growth and new hires.

It may allow for more efficiency in the administration of benefits to their workforce as well.

International Employers Have Much to Gain

Perhaps the biggest benefits from PEO partnerships go to international employers. If you’re thinking about crossing borders, it’s time to consider working with a PEO.

Why do international employers see so many advantages with PEOs? The PEO gives them access to the infrastructure and expertise they need to get started in a new market. The PEO’s team is already well-versed in conducting payroll and ensuring compliance.

They also have the infrastructure needed to employ people, administer benefits like HSAs, and more. If you need access to banking or insurance, the PEO can provide it.

In short, the PEO can help you set up your operations and ensure the people you hire are well taken care of in any market you choose to enter. Having the HR aspects of international expansion handled by the experts allows you to focus on other aspects of the business.

Any Business Can Benefit from a PEO Partnership

Almost any business could benefit from a PEO partnership. While PEOs are particularly helpful for small businesses and expanding international employers, even mid-sized and large employers can realize plenty of advantages when they partner with the right PEO.

Still not sure working with a professional employer organization is the right move for your business? Get in touch with the experts today. We can help you assess your situation and discover just how the right PEO partnership could help your business grow.

blog-cta-7-tips-to-help-you-hire-the-right-peo

Topics: Professional Employer Organization

The Simplest Way to Expand Business in Canada

Posted by Karen McMullen

|

Jun 17, 2019 9:00:00 AM

The Simplest Way to Expand into CanadaYour business has been growing steadily, but you’re always on the lookout for new opportunities. As your current markets have reached maturity, you’ve been wondering what your next move will be.

Download "12 Differences to Expect When Expanding into Canada" today!

One option now on the table is an international expansion to Canada

How can a company expand internationally?

There are a number of different ways to set up shop in Canada. Some are easier than others. This method may very well be the simplest way to expand business in Canada.

There Are Many Ways to Expand Business in Canada

For some business owners, moving in to Canada involves opening a branch office. This office is much like any other branch office, with the exception that it’s on Canadian soil. If you’ve opened offices in other cities or states, this may feel like the most logical move for you.

You will want to check the legislation governing branch operations, such as the tax laws. There might be a better way to expand business in Canada if you want tax efficiency.

You can also set up as a subsidiary company. This creates a new Canadian company, which is considered a separate entity from your parent company.

An acquisition is another way to expand a business. You could buy a Canadian business or property. Investing into an existing Canadian company is yet another option.

In any of these scenarios, it’s prudent to consult with financial experts, HR experts, and legal experts as well. Having professional advice offers you the strength of informed decisions. You want to make the best choice for your business.

Work with a PEO

The easiest route into Canada for most businesses is through a partnership with a professional employer organization, or PEO.

While you’ll still need to decide whether you’re setting up as a branch office or a subsidiary, working alongside a PEO can take the guesswork out of the HR logistics of your expansion.

Working with a PEO is like bringing in a specialized Canadian HR team. Their experts can help you monitor compliance, and they’ll administer your payroll. Your Canadian employees will be paid on time, every time, and you won’t need to worry about penalties from the Canada Revenue Agency.

The PEO will also provide access to other infrastructure, such as banking or insurance. Some PEOs provide health savings accounts for your employees. Through their program, you can rest assured you’re getting the best price and that the program is compliant..

Is a PEO Partnership Right for Your Business?

You might ask yourself whether you’re in the right position to partner with a PEO. Most small businesses can benefit from working with a PEO. The PEO is built to handle clients of all sizes, which means their infrastructure could help you as your business expands. Whether you have five employees or 500, the PEO is able to provide timely, efficient HR assistance for your business.

This is even more important for international businesses. The PEO’s expert team already knows the ins and outs of employment law, payroll taxes, and more, so they can help you conduct payroll, pay taxes, and provide leave, vacation, and more to your employees.

Talk to a PEO Today

If you’re thinking of ways to expand business in Canada, talk to a PEO today. Expert insights could help you get started on the road to successful international expansion.

With the right assistance, crossing borders and expanding into new markets is easier than ever before.

blog-cta-12-differences-to-expect-when-expanding-into-canada

Topics: Business Expansion

The International Employer’s Survival Guide to US Payroll Taxes

Posted by Corinne Camara

|

Jun 12, 2019 9:00:00 AM

The International Employers Survival Guide to US Payroll TaxesInternational employers have their work cut out for them. Since they employ people in multiple countries, they have to contend with the employment and payroll legislation in not just one, but many different locations.

Request a quote for US payroll services today!

Learning the rules and regulations in one market is often more than enough for a payroll team. You may need to bring in outside help or hire specialists to make payroll easier.

If you’re operating in the US, you might feel a little overwhelmed by US payroll taxes. There are many different rules to contend with, and one mistake can lead to a cascade of problems. This guide will help you master the basics, so you can conduct payroll for your American employees with ease.

The Different Levels of US Payroll

The first thing any international employer needs to know about US payroll taxes is that there are a few different levels and types of taxes.

The US has three levels of government. Depending on where you and your employees are based, you may end up having to pay federal, state, and local payroll taxes.

The types of taxes assessed at each level also differ. The federal government and state governments both collect income tax and unemployment taxes. Only the federal government collects FICA taxes.

Local governments may collect taxes for local infrastructure, such as schools or public transit.

Who Pays the Tax

Another key to understanding US payroll taxes is to know who is responsible for paying tax. Some taxes are collected from employees’ earnings. Others require a joint contribution from both the employee and employer. Still other taxes are the responsibility of the employer alone.

Both federal and state unemployment taxes are usually paid by the employer alone. In some states, though, employees share the costs of unemployment programs. FICA taxes, which include Medicare and Social Security, are always a joint payment. Employees and employers each pay half of the 2.9 percent contribution.

Income taxes are withheld from the employees’ earnings. The employer collects and remits the funds to the IRS, but isn’t expected to contribute to the payment.

Collections - Schedules and Payments

For every different tax an employer must collect, there’s a schedule to follow. Your schedule is often set by the size of your company. In general, it’s a good idea to determine which taxes you need to collect and remit. Then you’ll need to find out who the funds are remitted to. Some funds will be sent to the IRS, while others will be sent to the appropriate state or local authority.

Once you’ve determined who is receiving the funds, you’ll be able to read their rules for remittance schedules. The IRS will send you statements with this information.

There are also reports you’ll need to file for the different taxes you collect on your US payroll. Some taxes are reported on a quarterly basis, while others might have an annual reporting period.

Filing a report late and sending in payments after your deadline are some of the most common reasons employers face penalties.

Determining Rates

Most US payroll taxes are based on employee earnings. Federal income tax brackets change as employees earn more. Medicare is capped at 2.9 percent up to $200,000. Employees earning more than this amount have to pay an additional percentage.

Some employers pay just a fraction of the federal unemployment tax rate. If you pay your state unemployment taxes on time, you could qualify for a discount.

Get the Support You Need

Now you know some of the fundamentals of US payroll taxes, which can help you avoid penalties. If you still need help, though, don’t be afraid to call in the experts. A PEO can make paying your US employees easier than ever.

7-challenges-companies-face-when-expanding-into-the-us

Topics: Payroll

How a PEO Can Help Global Companies with Employee Management in the United States

Posted by Ray Gonder

|

Jun 10, 2019 9:00:00 AM

How a PEO Can Help Global Companies with Employee Management in the United StatesAnyone in HR knows how difficult it can be to provide effective employee management. It’s a challenge even when you’re working in the same office building, in the same country.

Download our whitepaper "7 Tips to Help You Hire the Right PEO" today!

Global companies have an even larger challenge. They could have employees in many different markets, and those employees may have varying expectations about the workplace culture. The legal frameworks and employer responsibilities can also vary drastically. Add in the fact that many of these employees are working remotely or in satellite offices, and you have your work cut out for you.

It’s one of the many reasons global companies often choose to work with a professional employer organization (PEO). Here’s how a PEO could help your global firm manage your US employees more effectively.

The Legal Aspects of Employee Management

One of the most important ways a PEO helps global companies manage employees in the United States is by navigating the legal framework around employment.

The US is a particularly complex situation because there are multiple levels of government. Federal laws, state laws, and even local laws may apply to employment arrangements at your company.

A PEO could help in this arena due to their experience and expertise with US laws. They might be able to give you expert advice and help you ensure compliance.

Help Finding the Right People

Another advantage of the PEO’s experience is their knowledge of the labour market. While you’ll remain in control of hiring decisions, the PEO can offer you tips and advice on every aspect of the hiring process.

This could include information about job hot spots and areas with talent shortages. They may be able to advise you on legal aspects of the hiring process, such as how to avoid discrimination in interview questions. New York City, for example, has banned questions about past salary.

Handling Payroll Is Easier with a PEO

One of the toughest parts of employee management is handling payroll. The US payroll framework isn’t an easy one to master either. There are multiple levels of government, all of them expecting different tax withholdings.

You’ll need to withhold both federal and state taxes, as well as FICA funds for Medicare and Social Security. Even local governments may require you to pay taxes to support schools, public transit, and other local infrastructure.

There are other aspects of payroll to consider as well. Overtime pay is one of them. Minimum wage might be another.

If you’re not familiar with the rules, then collecting the right amounts and remitting them on the right schedule can be difficult. Mistakes in payroll add up, resulting in penalties and additional expenses for global companies.

A PEO can help. By providing payroll services, they’ll ensure you’re following the rules and remitting all your withholdings on time.

Other Areas of Compliance

There are many other areas of employment where compliance is important. Record-keeping is a big one. How long do you need to keep employee information on file? Which records do you need to keep? You must also evaluate how your record-keeping aligns with data and data security regulations.

Another concern might be workers’ compensation and other forms of insurance, which you may be required to have. Different states have different regulations.

Even employee classification is a growing area of concern for global companies looking to employ people in the United States.

An experienced PEO can help you navigate all of these ins and outs.

Get the Helping Hand You Need

As demonstrated, a PEO can assist global companies with US employee management in a number of different ways. If you need help managing this aspect of your US operations, don’t hesitate to reach out to The Payroll Edge.

blog-cta-us-payroll-services-2

Topics: Professional Employer Organization

Canadian vs US Employment Laws: What International Employers Need to Know

Posted by Karen McMullen

|

Jun 5, 2019 9:00:00 AM

foreign-vs-us-employment-laws-what-international-employers-need-to-knowInternational employment laws pose a challenge for almost any employer who looks to move beyond their national borders. For American companies moving to Canada, the differences between US employment laws and the rules in the new market can be confusing. Similarly, Canadian employers may have plenty of questions about the US laws.

Request a quote for US payroll services today!

If you’re crossing the Canada–US border in any capacity, here are some of the most pertinent points you’ll want to keep in mind.

US Employment Laws and Human Rights

One of the biggest points of departure between Canadian and US employment laws is around human rights.

In Canada, the federal Charter of Rights and Freedoms grants Canadians the right to live free of discrimination. The Charter outlines many prohibited grounds of discrimination, such as gender, race, sexual orientation, age, and more. In some cases, Canadian courts have added prohibited grounds to the Charter by “reading in.”

The provinces have also created human rights legislation, which sometimes goes further than the federal Charter. Most provinces use this legislation to help protect Canadian workers and end discrimination in employment.

One example demonstrates how this can impact international employers. Some interview questions, such as those about marital status, are considered discriminatory in most provinces. Asking about religion, family status, or health could also be considered discrimination.

Canadian employees can start proceedings against their employers by complaining to their provincial Human Rights Commission. In the US, by contrast, employees would usually sue their employer independently.

Background Checks and Drug Testing

In the US, it’s very common for employers to require a background check. Some may also require a drug test as part of the hiring process.

In Canada, these checks are rare. Much like certain interview questions, background checks and drug tests could be considered discriminatory. Drug testing is allowed very rarely, and it’s usually not worth the risk of having a Human Rights Commission investigate.

Background checks in Canada are becoming more common, especially for certain professions, such as working with children and other vulnerable persons. If an employee handles money, merchandise, or sensitive information, a background check may be recommended.

Working Hours, Breaks, and Leave Time

Other major differences between Canadian and US employment laws are around working hours, breaks, and leave.

Federal US employment laws are rather sparse on regulations for these areas. There are no maximums on the number of hours employees can work, provided they’re compensated fairly. The US is also one of just three countries that doesn’t have mandated breaks for employees.

Individual states can create their own rules, but only a handful provide paid lunch breaks. Paid leave is also at the employer’s discretion. There’s no need to provide paid vacation, for example, unless you want to.

Canada presents almost the polar opposite situation. Most provinces have legislation requiring employers to offer paid and unpaid breaks, and capping the number of hours employees can work. Most laws lay out the maximum time an employee can work without a break, maximum shift lengths, minimum time between shifts, and maximum number of hours to be worked in a week.

The Canadian provinces also include legislation for paid time off, such as mandatory vacation and paid leave.

You Must Be Compliant

In both the US and Canada, compliance is important. In Canada, however, employers may find the rules are stricter, and there are more of them. There are also more bodies dedicated to ensuring compliance.

A great example is payroll and taxation. You’ll need to keep records in Canada. Not doing so could result in a fine or even a criminal charge. You could be asked to provide evidence of record-keeping to the Canada Revenue Agency or a provincial body.

If you need help staying on top of your compliance, you’re not alone. Get in touch with a PEO. Discover how we can help.

blog-cta-12-differences-to-expect-when-expanding-into-canada

Topics: Compliance and Legislation

International Employers: 5 Skills to Look for in Remote Workers in Canada

Posted by Corinne Camara

|

Jun 3, 2019 9:00:00 AM

international-employers-5-skills-to-look-for-in-remote-workers-in-canadaNo matter where in the world your company is based, you want to hire the best people to work for you. For international employers in today’s globalized world, this means finding talented candidates both at home and abroad.

Download "12 Differences to Expect When Expanding into Canada" today!

Technology has made it possible for people to work remotely. This is often an asset for employers who operate in multiple countries. Even if you don’t have a branch office, though, you may still opt to hire remote workers. One of the places you might decide to look would be Canada, especially if you have Canadian operations.

Interviewing and hiring remote workers can be somewhat trickier than hiring people who will work on site. What skills should you seek in remote workers in Canada? Here are a few you should be on the lookout for.

1. International Employers Want Tech-Savvy Employees

Technology is what enables remote work in most cases, so it only makes sense to look for people with strong technological skills. This is especially important since they’ll likely be working on their own most of the time.

This could mean they’ll need to navigate technological issues on their own. While it’s important to provide training for company-specific software and other applications, remote workers with a background in technology will be more independent.

2. Remote Workers Need Good Communication Skills

Another key trait to look for in your Canadian remote workers is good communication abilities.

Communication skills are invaluable in almost any job, whether on site or remote. Given that most remote workers will be communicating via email and instant messages, communication is even more important.

You’ll want your remote workers to be both familiar with communication technologies and able to communicate clearly and according to policies.

3. Organized Workers Perform Better

Another trait for international employers to look for in their remote workers is organizational skills. Some people are self-starters who can prioritize a list of tasks with ease. They’re also good at managing their time, so you can be sure they’re working in the most efficient way possible.

These people make good remote employees, because they’re motivated and productive. People who are less organized or don’t manage time as well will struggle more with the demands of remote work.

It can be difficult to judge organizational skills in an interview, so be sure to ask some questions about these skills. If you can, talk to other employers or colleagues who have worked with the candidate about their work habits.

4. Look for Someone Who Sets Goals

The best remote workers are self-motivated. If you give them a goal, they’ll work towards it. If you don’t, however, they’ll set goals for themselves and strive to reach them.

This trait is important for Canadian remote workers, because it helps them stay motivated and on track. If someone can’t set their own goals, you’ll need to be sure you set out the agenda.

If a worker isn’t goal-oriented, you may find that they struggle with productivity, even when you do set goals for them.

5. Ask for a Demonstration of Critical-Thinking Skills

Critical thinking and problem-solving skills are some of the most in-demand soft skills today. These skills allow your workers to approach problems from different points of view. It also asks them to apply a bit of creativity and reasoning in finding solutions.

Someone who is good at problem solving and critical thinking evaluates an issue from all sides. With all the information in hand, they can recommend a course of action.

This is even more important for remote workers, because they may not be able to ask for guidance or help immediately. Being able to think through an issue and come up with a solution is key.

When international employers look for these five skills in their remote employees, they have a much better chance of hiring the right people.

 blog-cta-12-differences-to-expect-when-expanding-into-canada

Topics: Business Expansion

Bill 66: What International Companies Employing Canadians Need to Know

Posted by Ray Gonder

|

May 29, 2019 9:00:00 AM

bill-66-what-international-companies-employing-canadians-need-to-knowInternational companies doing business in Ontario, Canada, have had a lot to keep an eye on recently. The provincial government has been rolling out initiatives to keep Canada’s most populous province “open for business.”

Download "12 Differences to Expect When Expanding into Canada" today!

So far, this has included measures such as putting a freeze on minimum wage increases and revising some policies about paid and unpaid leaves for employees. In April 2019, the government passed Bill 66 into law.

With the passage of the bill, many business owners and managers have asked how their workers will be affected. This quick survey will tell you what you need to know.

International Companies Should Review Revisions to Legislation

Bill 66, known as the Restoring Ontario’s Competitiveness Act, makes revisions to existing Ontario employment legislation.

The Act made immediate changes to the Employment Standards Act, 2000 and the Pension Benefits Act. International companies who employ Ontario workers will need to review the new legislation to make sure their policies are in compliance with the revisions.

Bill 66 also made changes to the Labour Relations Act, 1995. These adjustments will come into effect at a later date.

Effects on the ESA

One of the key areas of change is the overtime requirements in the Employment Standards Act, 2000. The Act originally stated employees could work a maximum of 48 hours per week. If employees were to work more than 48 hours, the employer needed to receive approval from the Director of Employment Standards.

The maximum number of hours of work is still the same, but Bill 66 removes some of the red tape for employers and employees in workplaces where overtime is common. Employers and employees can still enter into an agreement for employees’ hours to exceed the ESA maximum.

The agreement no longer needs approval from the Director of Employment Standards, which makes it easier for employers and employees to implement overtime agreements. In unionized workplaces, bargaining units can enter into these agreements.

Employers can also average the hours an employee works over a specified period in order to limit overtime pay. Bill 66 removes the necessary approval from the Director of Employment Standards for overtime averaging. It does introduce new requirements, such as defining a start and end date for the averaging period. The averaging period also can’t exceed four weeks.

Changes to the LRA and PBA

Bill 66 also made changes to the Labour Relations Act, 1995. The biggest difference here is the new definition of “non-construction employers.” This category now includes hospitals, universities, and many different administrators, among others.

What this does is redefine who is impacted by the LRA and how. The Act treats non-construction employers and construction employers differently. Those who are no longer considered to be part of the construction industry won’t be subject to the industry-specific criteria of the Act.

Bill 66 also made adjustments to the Pensions Benefits Act. The process employers use to convert single-employer pension plans to jointly sponsored plans has changed.

How This Affects International Companies

What does this mean for international companies with Canadian employees living and working in Ontario?

The change that will have the largest effect is the revision to the ESA. With the new overtime requirements, you may have an easier time approving employees’ overtime. You’ll also have more control over how much overtime you pay out.

For international companies that face high rates of overtime, this is welcome news. The overtime averaging allowances make it easier for you to meet staffing needs on a more flexible basis. The removal of the approval from the Director makes implementing agreements faster and easier.

Changes to the LRA will only affect certain employers. If you don’t have a pension plan, the change to the PBA likely won’t affect you.

If you’re concerned about your compliance in light of the changes, get in touch with a PEO. We can help you understand how the changes will affect your business.

blog-cta-12-differences-to-expect-when-expanding-into-canada

Topics: Compliance and Legislation

Subscribe to Email Updates

Recent Posts

sidebar-cta-12-differences-to-expect-when-expanding-into-canada

Posts by Topic

see all