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Manage Your Payroll the Right Way with Outside Service Providers

Posted by Karen McMullen

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Jul 3, 2015 9:00:00 AM

Manage_Your_Payroll_the_Right_Way_with_Outside_Service_ProvidersIf you run a small business north of the United States border, then you know how critical it is to get your payroll service solutions right, so that you can ensure that your employees are compensated fairly and in a timely manner without any unnecessary complications that can cost you money in the long run. In order to mitigate the risk involved in dealing with something so complicated, you may want to consider hiring Canadian payroll service providers for the best possible results.

In fact, the complications are such that there are more than 190 stipulations required by law pertaining to Canadian payroll processing. It is perhaps partially for this reason that American companies are reluctant to expand and include operational facilities in Canada.

One of the biggest issues facing small businesses has to do with payroll tax deductions in Canada. The small business sector is responsible for the largest amount of uncollected taxes. As a result, the Canada Revenue Agency has decided to implement stringent payroll tax procedures. With this in mind, you will undoubtedly want to hire payroll service providers who understand the intricacies of the requirements and can help you meet them sufficiently. The government also consistently provides payroll deduction tables to assist you and small business owners like you in determining the correct amounts to deduct from your employees' respective paycheques.

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

Topics: American Companies, Outsourced Payroll Service

American Companies with Canadian Employees Should Use Payroll Services

Posted by Ray Gonder

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Jun 29, 2015 9:00:00 AM

American_Companies_with_Canadian_Employees_Should_Use_Payroll_ServicesMultinational companies have a lot on their plates. Logistics, management, marketing, and other facets of business are inevitably more difficult when a company hires or contracts employers from more than one nation—even if they're neighbours.

The United States and Canada, for example, share a border (and a lot of other things). Though the two countries are similar, doing business in both of them simultaneously can be challenging. The payroll laws and regulations in Canada are decidedly different from those found in the United States.

Lacking Expertise

For smaller businesses (i.e. 50 employees or less) especially that want to hire Canadian workers, handling payroll takes considerable effort and expertise in Canadian payroll laws and regulations. There are over 190 statutes regarding payroll management and processing alone. Without intimate knowledge of these laws, non-Canadian companies seeking to set up shop in Canada are at a considerable disadvantage.

It Can Be Overwhelming

Understandably, some American companies are wary of hiring Canadian workers, particularly those that may not have the in-house resources needed to properly manage payroll. One mistake—a careless or even minor one—can lead to major consequences. From filling out tax forms and legal documents to calculating wages and converting currency, payroll processing duties can be overwhelming. There's much more to payroll, after all, than cutting cheques.

Human Resources

And that is just payroll. Payroll typically falls under the domain of human resources (HR). The responsibilities of HR include employee training, health and safety regulations, and employment laws, which—just as with payroll—vary by country. American businesses that want to hire employees in Canada must follow these rules down to the wire lest face serious government penalties. For companies that may not have the resources or expertise in Canadian law, this adds on to the burden of figuring out payroll. 

Outsource Your Payroll and HR

That is why professional payroll service companies are so invaluable for multinational companies that operate in Canada. These companies are composed of dedicated professionals that know Canadian payroll laws and regulations like the back of their hands. Outsourcing your payroll and HR needs is a breeze with these companies, many of which have easy, accessible online services (such as portals) for their clients. Payroll processing services can save companies time and money, which allows them to focus on the business itself. With just one report to approve and one invoice to pay, payroll processing couldn't be easier.

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

Topics: American Companies, Canadian Employment

5 Reasons Why Your American Company Needs Outsourced Payroll in Canada

Posted by Ray Gonder

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Mar 27, 2015 9:00:00 AM

5-Reasons-Why-Your-American-Company-Needs-Outsourced-Payroll-in-CanadaWhen an American company is using Canadian workers, by law, it must pay them in compliance with Canadian payroll legislature. Simply converting funds to Canadian dollars, ignoring taxes and other deductions, and sending out cheques to Canadian employees is illegal—and it can come back to bite you. This may seem like the easier option, but if your Canadian employees aren’t truly independent contractors, this business practice isn’t going to fly with the Canada Revenue Agency. It can lead to hefty fines and penalties.

When you’re paying Canadian employees, you must comply with the payroll laws of the country. However, this can be difficult—there’s a lot to know and understand and many steps to take to ensure you’re paying them legally. If you’re not sure you can do it correctly, consider using outsourced payroll. Outsourcing your payroll responsibilities provides you with many benefits. As an American company, here are just five reasons why you should use outsourced payroll.

Save Money

Every company is looking to save money—and you can do just that with outsourced payroll. To manage Canadian payroll on your own, you’re going to need a completely new Canadian payroll software system. Your American system just won’t cut it—the laws and rules are too different. This can cost you a pretty penny. Additionally, you’ll need to take time away from your other responsibilities or hire someone in-house to handle the task, which will also cost you more than you’d expect. And if errors occur due to a lack of knowledge, you could be paying more in government fines. With an outsourced payroll provider, you only pay for the work that’s done—with no hidden fees. You’ll also save on the costs associated with printing, tax filings, and invoices and pay stubs.

Save Time

What would you do with a little more time? With an outsourced payroll provider, you free up a lot of time that would otherwise be spent on mundane and never-ending payroll paperwork. For an American company, learning Canadian legislature, keeping up with deadlines, filing appropriate tax papers and remittances, and ensuring accuracy in calculations can be especially time consuming without prior knowledge. When you outsource the responsibility, you don’t have to take time away to do any of this.

Guaranteed Accuracy

Errors in payroll can cause you more headaches and cost you more money down the line. To avoid these troubles, your best bet is to outsource your payroll needs. Your payroll provider is an expert—he knows the ins and outs of Canadian payroll so he can ensure that your payroll process is always accurate, so you don’t have to worry about errors coming back to bite you later on.

Always in Compliance

Canadian payroll legislature is complex and stringent. If you don’t know every single law that applies to your company and your employees, you could end up in hot water with the government. Luckily, your payroll provider will be up to date on all current tax and employment laws to ensure that you’re always in compliance. You won’t have to do any research or keep up with any changes in legislature when you use outsourced payroll.

Speed

When you know the ins and outs of payroll in Canada, you can do the job at a faster speed. As an owner of an American company you naturally won’t have the knowledge needed to manage payroll quickly—you’ll have to spend a lot of time learning the ropes, which will cost you more in time and money than you would if you simply outsourced the responsibility to an expert.

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

Topics: American Companies, outsourced payroll

How an American Company Does Canadian Payroll

Posted by Ray Gonder

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Mar 9, 2015 9:00:00 AM

HowanAmericanCompanyDoesCanadianPayrollMany US companies cross the border to do work in Canada. When an American company hires Canadian employees, it must abide by all Canadian payroll laws and ensure that those workers are paid in compliance to the government’s current payroll rules and regulations. Though American and Canadian business activities are quite similar, their payroll processes are just different enough to make it more difficult for an American company to do Canadian payroll. US companies have a few options available to them when it comes to paying their workers north of the border—some of which are better than others.

Going at It Alone

An American company might think that expanding business operations into Canada and paying workers there is similar enough to American payroll to go at it alone. However, the payroll laws are stringent and the tax requirements are different. So simply using the same old payroll processing software and following American deadlines and rules is going to get you into trouble. You’ll need relevant software and you’ll need to continuously stay up to date on changing legislature. Using outdated information you gathered up years ago (or even just a few months ago) related to Canadian payroll won’t work—the laws change too often to be able to rely on it.

And if you’re thinking of just avoiding paying taxes altogether by classifying your Canadian workers as independent contractors when they don’t fit that bill you risk being caught and having to pay heavy fines and penalties for this illegal activity. The government pays close attention to companies that classify their employees as such and may look closely into your business activities if you do.

If you’re planning to do Canadian payroll internally, you’ll have to do so legally. This means establishing a presence, signing up with the government, learning about payroll laws and employee classifications, calculating the right tax deductions and other contributions, and remitting these withholdings to the right government officials on time, every time.

Sound too complicated? You have other options to consider.

Outsourcing to a Payroll Provider

When you outsource your Canadian payroll processing to a back office payroll provider, you won’t have to worry about being in compliance and doing your due diligence. You can rely on the experts you hire to take care of the payroll calculations, classifications, pay stubs, tax filings, and all the rest of the paperwork associated with managing payroll. Some back office service providers will even offer to take your HR administration off your hands, offer payroll financing, and ensure you’re compliant with all other employment laws, too. Outsourcing can allow you to focus on your core business without being bogged down by government bureaucracies and paperwork, while ensuring that your payroll processing is always accurate and legal.

Employer of Record

Your other option is to engage an employer of record (EOR). This option is ideal if you’re not quite ready to establish a Canadian presence just yet or you want to pay your workers remotely. When you engage an EOR, your employees become its legal responsibility and the company will take care of all the administrative tasks associated with paying your Canadian workers.

Which Option Will You Choose?

When American companies expand their business activities into Canada, they must ensure that their new north-of-the-border employees are paid legally and properly under Canadian legislature. They can try to go at it alone, but this is a risky endeavour if they’re not familiar with Canadian payroll laws. Or, they can outsource their payroll processing to a payroll service provider or an employer of record.

Learn What Makes Us Unique

Topics: American Companies

How to Avoid Canadian Payroll Mistakes as an American Company

Posted by Stacey Duggan

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Jan 16, 2015 9:00:00 AM

How_to_Avoid_Canadian_Payroll_Mistakes_as_an_American_CompanyAs an American company operating in Canada, it can be very easy to make Canadian payroll mistakes if you’re not careful. The payroll system is strict and any filing error can cost you big time. Naturally, you want to avoid making Canadian payroll mistakes at all costs so everything can go smoothly with your business operations north of the border. Here are some of the common errors an American company can make and how to avoid making them in order to avoid the risk of non-compliance.

Taking Shortcuts

Because it’s so time consuming to learn the Canadian payroll laws and manage all the correct accounts with the right authorities, some companies might think it’s just easier to take some shortcuts like not registering for the provincially run worker’s compensation program or follow the legislative employment standards in each jurisdiction. But taking shortcuts can damage your business’s reputation in Canada, cost you tons of money in fines, and also risk the safety of your Canadian workers. No shortcut is worth the kind of trouble you can get in, so it’s best to take the time to know and follow the appropriate laws.

Employee Classification

Classifying your employees appropriately must be done before any pay cheques are mailed. If you think you can get away with classifying everyone as an independent contractor, pay them an hourly wage or salary without deductions and expect them to take responsibility for their own taxation, think again. This is a big red flag for the Canada Revenue Agency and can result in an audit that can lead to hefty fines. You’ll end up paying more in penalties than you would have originally if you would have just followed the letter of the law.

Cutting Cheques

If you’re working across the border, you might think it’s fine to just keep track of your Canadian employees’ hours, convert some money into Canadian currency, and cut some cheques to mail out. However, this is just plain illegal. Doing so means you’re bypassing tax laws and other Canadian legislature. Paying Canadian workers isn’t that easy, I’m afraid. Once the authorities realize what you’re doing and catch up with you, you can get severely penalized for this oversimplified process.

Using US Software

You’re already paying and using US software for your own employees, so it can be tempting to just use the same payroll program to pay your Canadian employees—it saves you money and training time. However, there are far too many differences between US and Canadian payroll for this to work. Remittance deadlines, employee classifications, withholdings, and deductions are all just different enough in Canada to make your US software unusable for paying Canadian employees. You’ll have to invest in Canadian software if you expect to be compliant.

Just Learning the Ropes Once

Unfortunately, Canadian payroll legislature is constantly changing. If you learned the ropes years ago, chances are that the rules have drastically changed now. For example, payroll taxation burdens on both the employee and employer side can change each year and thresholds for tax deductions can change as well. Relying on this outdated information to process payroll puts you at a greater risk of error. You need to be constantly up to date with new and changing legislature.

Late Remittance

The CRA wants its money, and it wants it when the CRA says so. Keeping up with all the remittance dates for HST, CPP, EI, and other deductions can be time consuming. But if you don’t, you might be remitting your payments late, which can lead to 10% fines on those late payments.

Employer of Record Services

Instead of risking Canadian payroll mistakes due to misunderstandings or ignorance, consider outsourcing your payroll needs to an Employer of Record. As an American company, an EOR can save you loads of time and money. The EOR will make sure you’re always compliant with local laws and will send out all of your remittances so you’re always in the government’s good books.

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

Topics: American Companies, Canadian Payroll Mistakes

3 Things U.S. Companies Need to Know About Canadian Labour Laws

Posted by Stacey Duggan

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Jul 3, 2014 1:46:00 PM

3 things american companies need to know about canadian employeesAmerican companies eyeing a workforce expansion into Canadian markets need to be aware of many social and legal differences between our two countries. Without an understanding of these many differences, it will be difficult, if not impossible, to avoid delays, or even fines and penalties, if you are looking to actually put in place a bricks and mortar business. While some of the differences can be incredibly complex, most of them fall into a few broad categories. Looking at these categories, and the requirements for setting up a business in Canada, can help you determine if it's something you want to attempt on your own, or if you want to seek professional assistance. When contemplating a Canadian workforce expansion, you should keep the following three things in mind.

Workers' Rights

Cultural and legal differences give Canadian employees more rights than are found in most US states. While it's not uncommon to find "at will employment" laws throughout the US, you'll find no such provisions in Canada. Instead, employees are granted certain statutory rights that govern how employers must treat them. Canadian workers are entitled to vacation pay, notice of termination, accommodations for disabilities, and are largely free of drug testing obligations. These are just a few of the most basic differences between US and Canadian employment laws. Failing to understand all of the differences can lead to fines or even a visit from the Canadian Human Rights Commission.

Employer Obligations

With increased workers' rights also come increased employer responsibilities. These responsibilities can be very similar to US requirements, or completely different. In the US, employers must make reasonable accommodations for workers with disabilities, unless it creates an undue hardship on the business. In Canada, there is no exception for undue hardships. If an employee needs an accommodation, the accommodation must be made. There are also numerous requirements regarding workplace safety and training, along with keeping required postings and reading materials on hand. Failing to abide by any of the statutory requirements can result in substantial fines, or even shutter your business.

Getting Started

Taking your Canadian workforce expansion from concept to completion can be a convoluted and time consuming process. You can't simply hire someone and start conducting business in Canada. There are processes that must be followed to the letter and, if they're not, your expansion could be delayed or derailed. Creating government accounts, setting up banking and insurance, and dealing with multiple bureaucracies takes time. Trying to do it on your own can actually cost you money in the long run, as you'll likely have to fix mistakes along the way.

If you are looking to hire Canadian employees but are not doing any transactional sales with Canadian companies, then an Employer of Record service like The Payroll Edge could be the answer to hiring the workforce you need without the complication of understanding foreign employment and taxation.

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

Topics: American Companies, Canadian Employment Laws, US and Canadian Employment and Labour Law

American Companies: 5 Easy Steps to Calculating Taxes in Canada

Posted by Stacey Duggan

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Jun 11, 2014 1:45:00 PM

american companies 5 easy steps to calculating taxes in canadaAmerican companies paying employees in Canada will need to learn how to calculate Canadian taxes. Even if the business operates from inside of the US, they’ll still need to calculate taxes for any of their Canadian employees. Making timely and accurate tax filings with the Canadian authorities is essential for avoiding fines and penalties. The steps for calculating taxes in Canada are relatively straightforward.

Calculate Pay

To start with, you’ll need a complete record of the employee’s taxable earnings. This may include overtime, holiday pay, gratuities, or certain paid expenses or benefits. The definition of “pay” can vary from one province to the next, so you’ll need to be versed in the applicable tax laws for each work location. Once you know exactly what to count as taxable income, you’re ready to add up the gross income for each employee.

Verify Status

Withholdings can vary depending on the employee’s status, type of employment, location, age, and hours worked. Withholdings for social programs like the Canadian Pension Plan and Employment insurance have an annual maximum, so you need to monitor when employees have reached their yearly limit. Withholdings can also change from year to year, and it’s up to you to keep up with any changes.

Calculate Employer Remittances

Like the US, American companies in Canada are required to contribute to certain government programs. The employer is expected to match a certain percentage of employee contributions to programs like the CPP and EI. Like employee contributions, annual employer contributions are capped. Make sure you don’t overpay, as you may not be eligible for a refund, or underpay, which could result in fines and penalties. Required contributions can vary from year to year, and province to province.

Remit Withholdings

Once you’ve accurately calculated all of the withholdings from your employee’s pay, you must remit them, along with your contributions, to the CRA and other authorities prior to the due date. For some American companies, this will occur annually, while other companies will have to make more frequent filings. Failure to make regular, timely remittances can result in fines, penalties, and even criminal charges.

Reporting

Each employee needs to be provided with a T4, T4A, or other tax information slip. These slips typically must be received by the employee by the end of February, though that can change depending on which slip is used. These slips show what the employee earned, any commissions earned as well as the taxes that were withheld for that person. These slips, similar to a W2 in the US, are necessary for the employee to complete their personal taxes, so it’s important to get them out on time.

Straightforward isn’t always Simple

While these steps look pretty straightforward, that doesn’t mean that they’ll be easy to follow. Canadian payroll laws are complex, and constantly changing. If you’re not comfortable committing the time and effort to keep up with those changes, you may want to consider a professional payroll service. A payroll service can handle calculating taxes in Canada, so you and your staff don’t have to.

Canadian Payroll Tax Deduction Calculator

Topics: American Companies, Calculating Taxes in Canada, American Business in Canada

Are Canada’s Policies Enforceable to American Parent Companies?

Posted by Stacey Duggan

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May 21, 2014 8:29:00 AM

American and Canadian Employment Laws. The Payroll Edge What happens when American parent companies open for business in Canada? How can an American company protect themselves when expanding business into Canada? 

Most American employers assume that with their expansion into the Canadian business market comes a simple transfer of their company policies and procedures all the while unaware of our complex employment law system. 

Although Canada is similar to the U.S. in many ways, our employment rules and regulations are not. Take for example that there is no at-will employment in Canada nor do we routinely drug test job candidates and unlike in the U.S., our workers compensation board is government run.a? Most American employers assume that with their expansion into the Canadian business market comes a simple transfer of their company policies and procedures all the while unaware of our complex employment law system.

U.S. employers operating or employing Canadian workers should either become well versed in Canadian employment standards and compliance or secure the services of an Employer of Record provider. Look at the following example of Canadian company Sure Grip’s misstep in trying to include a U.S. policy in their Canadian company policy:

As seen on Mondaq.com “Canada: Are Your Policies Really Enforceable?” By: Christopher Andree and Jennifer Emmans.

“Oliver was a 9 year management employee of Sure Grip Controls Inc. He had a written employment agreement but it did not deal with the termination of his employment.

Five years after he started, Sure Grip introduced an employee handbook. At the time Oliver signed an acknowledgement that he had received, read and agreed to comply with it. The handbook addressed termination by suggesting Sure Grip would pay only one week's pay for every full year of employment.

The handbook also stated, "I understand that the Sure Grip Controls Inc Management Team Handbook is not a contract of employment and should not be deemed as such."

In March 2011, in the context of a dispute over Oliver's entitlement to a profit sharing payment (which had been denied while Oliver was on medical leave due to a thyroid condition that required surgery) the company terminated him. 

Sure Grip took the position that Oliver's entitlement to pay in lieu of notice of termination was limited by the handbook to nine weeks. However, the trial judge found otherwise. She stated that while the parties could have made rights on termination a part of their written contract, the handbook clearly stated that it was not a contract of employment. 

Consequently, Oliver's entitlement was not limited to nine weeks' pay as suggested by the handbook.  Instead he was entitled to damages based upon the common law principle of reasonable notice. Oliver's damages were assessed at $87,684.00 based upon twelve months' wages and commissions. “

This case illustrates the repercussions to companies that attempt to integrate employment standards derived from another country into Canada. Additionally, trying to implement policies through an employee handbook that clearly states it is not to be used as a contract of employment and having employees acknowledge it in writing is simply not enough. American employers need to take notice of examples like these if they want to protect themselves from legal proceedings when hiring, paying or dismissing Canadian workers.

The Payroll Edge is a Professional Employer Organization (PEO) in Canada for American & foreign companies who would like to have Canadians on their payroll. Contact us today.

A U.S. Company Looks to Expand Tts Workforce in Canada

Topics: American Companies, ESA Compliant, Paying a Canadian, Payroll Regulations, Pay Canadian Employees

American Company Hiring Canadian Employees: What You Need to Know

Posted by Stacey Duggan

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May 12, 2014 10:06:00 AM

american company hiring canadian employees what you need to knowBefore hiring Canadian employees, there are a few things you need to know. As an American company, you may not be familiar with the many differences between US and Canadian employment laws. Not knowing those differences could result in violations of Canadian laws. If that happens, your company could face expensive fines and penalties. Here are some of the key differences that you should be aware of before hiring Canadian employees.

Minimum Wage

Each province and territory has their own rules for minimum wage payments. Changes to the minimum wage can vary from year to year, and different employee classes can have different minimums. Keeping up with the changes, and making sure employees are properly classified, is the responsibility of the employer.

Vacation Pay

Most Canadian workers are legally entitled to two weeks of vacation time each year. For most employees this means that they are paid 4% of their pay for this vacation period. Only one province has a higher vacation pay standard for new employees and that’s in Saskatchewan where employees are entitled to 5.77%.

Drug Testing

Pre- and post-employment drug testing is generally not permitted under Canadian law. In most instances, it's actually considered a human rights violation, and testing employees could earn you a visit from the Human Rights Commission.

Canadian Pension Plan

You'll be responsible for withholding the correct amounts from employee paycheques and remitting payments for CPP. You'll also be responsible for remitting your contributions to the employees' CPP funds. The maximum withholdings vary from year to year, and it's up to you to know when an employee has maxed out.

Accommodations for Disabilities

As an American company, you're probably familiar with the many provisions for providing equal access to persons with disabilities. In Canada, those provisions can go quite a bit further. Even if it causes an undue hardship or burden on your business, Canadian law requires you to make any necessary accommodations.

Termination of Employment

Throughout much of the US, employment can be terminated "at will" with no notice or severance pay. Canadian law requires that reasonable notice of termination be given to the employee. Employers also have the option of "payment in lieu" of notice. Essentially, payment in lieu is severance pay that employees are entitled to if reasonable notice can't or won't be given.

Changes in Employment Terms

In the US, employers can generally change the terms of employment at any time, without notice. If the employee doesn't quit, they are considered to have accepted the changes. In Canada, changes to the terms of employment generally must be accompanied by a raise or other consideration. If the employee is terminated for not consenting to the changes, they may be owed any payments they would have accrued during the period of reasonable notice of termination.

More Beneath the Surface

These are just examples of some of the legal requirements that cause problems for American companies. There are literally hundreds of differences between US and Canadian employment laws, and it's up to you to make sure you comply with every single one of them.

If you don't have the time, or confidence, to learn an entirely new legal system, it's a good idea to partner with someone who does. A Canadian payroll service provider can help you with payroll compliance, and ensure that your employment practices are lawful. With the costs of fines and penalties factored in, the expense of a payroll service provider is truly worth the cost.

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

Topics: American Companies, Canadian Employment Laws, Hiring Canadian Employees

How American Companies Pay Canadian Employees

Posted by Ray Gonder

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Apr 16, 2014 9:05:00 AM

How american companies pay canadian employeesIf you’re a US-based employer trying to pay Canadian employees, the process can be deceptively simple. You may think that all you have to do is convert US dollars to Canadian, then send a check across the border. However, if you use this approach to pay Canadian employees, you’ll soon run afoul of the Canadian Revenue Agency (CRA). The CRA administrates and oversees Canadian payroll tax laws and tax withholdings, and they have some very stringent requirements for how you must pay Canadian employees.

Working Around the Laws

Some US businesses are tempted to try and work around the Canadian payroll laws. They do this by paying Canadian employees as independent contractors. As with most workarounds, this approach fails to meet the intent, and the letter, of Canadian payroll laws. The CRA has made a concerted effort to crack down on employers who abuse the independent contractor system. A US-based business caught trying to pay Canadian employees in this manner will almost certainly face fines, back tax payments, and even criminal actions.

Working Within the Laws

Trying to pay Canadian employees within the letter of the law can be equally challenging. The payroll laws are complicated and lengthy. Learning all of them takes a lot of time, and understanding them takes a lot of experience. The complexities of the laws can affect their application from one situation to the next. This can impact everything from withholding amounts to required workplace training. Failure to understand, and properly apply, these laws can also result in expensive penalties.

Working With a Partner

One way to pay Canadian employees without having to worry about workarounds or learning complex legal codes is by working with a professional payroll service provider. They can act as your Employer of Record (EOR) in Canada, allowing them to legally pay Canadian employees on your behalf. As an EOR, they already have the infrastructure and accounts that are necessary for hiring and paying employees legally. They also have the advantage of already being established, so they can begin paying employees almost immediately. Compare this to the weeks or months it will take you to establish yourself legally in Canada so you can pay employees on your own.

The Services You Need, When You Need Them

A service provider like The Payroll Edge can do much more than just help you pay Canadian employees. With their training and experience, they can handle as many or as few of your administrative tasks as you need. They can provide workplace safety and compliance training, contract negotiations, benefits management, and much more. With their help, you can quickly and easily hire workers in Canada and begin to service the needs of your clients here in Canada without worrying about running afoul of the CRA.

Canadian Payroll Tax Deduction Calculator

Topics: American Companies, Pay Canadian Employees, American Business in Canada

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