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How Is Your Payroll Affected by Employing a Canadian?

Posted by Stacey Duggan

|

Nov 22, 2017 9:00:00 AM

How Is Your Payroll Affected by Employing a Canadian--.jpgDo you operate a branch office in Canada? Are you thinking about opening a Canadian subsidiary? Maybe you just finished acquiring a Canadian firm. Any of these situations could leave you wondering, “How does employing a Canadian affect my payroll?” 

It’s a good question to ask! Preparing payroll in Canada isn’t necessarily hard, but it is different. A nuanced understanding will help you avoid mistakes.

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Two Levels of Government

Employment standards and taxation are handled at two levels of government in Canada. Both the federal and provincial governments are involved in regulating how payroll is conducted. 

Federal employment standards only apply to federal employees, who make up about ten percent of the workforce. The other 90 percent of Canadian employees are covered by provincial legislation. 

Provincial legislation covers topics like vacation pay, minimum wage, and shift lengths. Federal legislation is more important when it comes to social programs such as the Canadian Pension Plan and Employment Insurance.

Where Do You Operate?

Different provinces have different legislation pertaining to payroll, so you first need to figure out what legislation applies to your operations. You’re employing a Canadian, but where do they work? You’ll need different calculations if they work in Montreal than if they work in Saskatoon. 

Once you’ve determined the legislation

x cvoverning your operations, you can begin calculating payroll.

What You Need to Consider

In all provinces and territories, businesses employing a Canadian will need to consider calculations for CPP and EI. You’ll also need to calculate and set aside federal income tax for your employees as well.

Next, you’ll turn your attention to provincial withholdings. Most provinces also assess income tax. Income tax brackets range from as little as four percent for the lowest earners in Nunavut to 21 percent for high earners in Nova Scotia!

The provinces also lay down the law when it comes to vacation pay, leaves of absence, parental leaves, and other types of paid and unpaid leaves.

The federal government also regulates what is considered a “taxable benefit.” This definition is shifting, so be sure to check. Employers commonly misunderstand what is a taxable benefit and what’s not. Avoid any trouble by double-checking.

The Role of the CRA

The Canada Revenue Agency (CRA) is the governing body for almost all tax- and payroll-related issues in Canada. You’ll submit your tax return to the CRA for both provincial and federal taxes and calculations.

The CRA assesses your return and determines if it’s accurate. It’ll also assess any penalties if you’ve submitted an erroneous return. It also has the power to audit your business operations in Canada.

The CRA offers many tools for employers to avoid tax penalties related to payroll. Not only do they explain the payroll tax regulations in Canada, they also provide tools such as calculators designed to help you calculate your return correctly.

Getting Help

If you need help with payroll because you’re employing a Canadian, don’t worry. There are many free tools designed to help you calculate your withholdings. The CRA itself is a good resource, as already mentioned.

Other resources exist. A Canadian payroll service provider may be your best bet. Some offer free resources to help you understand how employing a Canadian could affect your payroll. You could also team up with them to ensure payroll is done right.

Getting Things Right

If you’re employing a Canadian, you’ve taken the first major step by asking how this affects your payroll. The next step is making sure you use this knowledge to good effect. Discover more about your obligations as an employer.

If you’re still having trouble with payroll calculations, consider employing a Canadian payroll services provider. They know the ins and outs of payroll in Canada, and they’d be more than happy to help.

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

Topics: Business Expansion

What US Employers Should Know about Canadian Business Culture

Posted by Karen McMullen

|

Nov 13, 2017 9:00:00 AM

What US Employers Should Know about Canadian Business Culture--.jpgAs a U.S. employer hiring Canadian employees or expanding into Canada, it's important to have a general awareness of Canadian business culture. For U.S. companies operating businesses north of the border, understanding basic customs is a matter of respect. 

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While it's important to work with professional employer organizations to work out the details of payroll and other logistics, it is up to you to figure out the social aspect of this outsourcing. The following is a basic guide on what you can expect from business culture in Canada.

Meetings

Business meetings in Canada are generally more reserved than those in the United States. While American workers generally assert their thoughts quite forcefully, often interrupting their coworkers, Canadians communicate differently. Disagreements are usually resolved respectfully and the employees truly try to seek agreement. Take care not to interrupt anyone, as this will be seen as disrespectful.

You may also notice that managers take time to ask team members for their opinions individually during meetings, taking a more informal approach. In general, Canadian management style is more group-oriented than individualistic, so an overall team goal matters.

Networking and Business Contacts

Similar to American business communications, Canadian networking is formal. You should shake hands and hold strong eye contact. You may notice, however, that these contacts are less direct than your American colleagues. While Americans are used to boasting their accomplishments, Canadians may take a more subtle approach to networking.

Also, keep in mind that much of Canada speaks French. If you are operating in or near Quebec especially, it would be wise to have copies of your business cards and other materials in French and English.

General Business Communications

In the U.S., professionals take a high-energy approach to business most of the time, focusing on data and the end goal. Depending on the industry, the Canadian approach might not be as intense. As mentioned above, they generally see business as more team-oriented. Canadian business employees also take dress very seriously, so dress professionally.

While business culture in Canada is not drastically different than that in the U.S., it's important to pay attention to details when attending meetings north of the border. Remember that working with a Canadian professional employer organization is also useful when handling Canadian employees. These payroll processing companies can also assist with HR support and dealing with sensitive employment issues.

What US Companies Need to Know about Paying Employees in Canada

Topics: Business Expansion

A US Company Wants to Hire a Canadian Staffing Agency: Next Steps

Posted by Karen McMullen

|

Sep 25, 2017 9:00:00 AM

A US Company Wants to Hire a Canadian Staffing Agency- Next Steps.jpgAs an American company expanding into Canada, hiring a staffing agency is a smart move. Managing business on the other side of the border can be a handful, especially when you have other, more important business duties to handle. However, how can you ensure you pick the right Canadian staffing agency?

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If a US company wants to hire a Canadian staffing agency, there are some questions you must ask yourself before making the investment. Otherwise, you risk working with an agency that doesn’t cover all the services or needs you require. Continue reading for some valuable next steps for when a US company wants to hire a staffing agency in Canada.

What Are Your Staffing Needs?

The first step you should take when looking for a Canadian staffing agency, is considering what you need in terms of staff. How many people are you looking to hire? What skills does each candidate need? Is there any past experience that must be on the qualifying list? Will anyone you hire be a contract worker, or is everyone a full-time hire? Yes—the questions can be overwhelming. But without understanding them, you won’t be able to provide your staffing agency with the information they need to make the right calls in terms of hiring.

Before you reach out to a hiring agency, make sure you have a clear list of exactly what employees you need in order for business to run smoothly. This helps the agency make clear job descriptions, better interview candidates, and determine who would be the best fit for your business.

Do You Need Services Beyond Hiring?

This might be a question you haven’t considered. Of course, most staffing agencies only help with the recruitment of new hires. However, as you expand into Canada, you might find yourself in need of more than just the basic recruitment services. How will you handle employee training? If something doesn’t workout, who will handle terminations? Have you considered how you’re going to handle the payroll of all these new hires?

From employment standards to payroll regulations, there’s a lot to handle when you expand your business into Canada. Unfortunately, if it isn’t done right, you can find yourself facing a long list of fines and penalties. In 2013 alone, the Ministry of Labour initiated 286 prosecutions due to violations in the Employment Standards Acts. Violations can range from improperly distributed vacation pay to failure to provide Employment Insurance. Regardless, there’s a lot of room for error.

Thankfully, some agencies in Canada offer more than just recruiting services. Consider outsourcing your business needs to an Employer of Record (EOR). When you work with an EOR, a reputable company with decades of experience in international business will handle everything from hiring, training, to proper payroll functions.

How Will You Ensure You’re in Compliance with Canadian Laws?

As mentioned above, Canada has a lot of rules and regulations that are very different from the US. If a US company wants to hire a Canadian staffing agency, a vital step is looking for agencies that are experts in Canadian taxation, payroll, and employment standards. 

Every year, Canadian standards evolve both federally and in each individual province. For many business owners, it’s too much to keep up with. A staffing agency won’t likely take these laws into consider past the recruiting process, leaving you to handle compliance on your own. 

However, if you consider working with an EOR, you can rest easy knowing your business is running in compliance with all Canadian laws. From taxes, employment standards, all the way to payroll regulations, an EOR provides much more than just hiring service. 

If a US company wants to hire a Canadian staffing agency, expanding their search to include an Employer of Record will give you more bang for your buck and a better expansion process in the long run.

What US Companies Need to Know about Paying Employees in Canada

Topics: Business Expansion

Top 5 Tips For Using a Canadian Contractor

Posted by Stacey Duggan

|

Sep 6, 2017 9:00:00 AM

Top 5 Tips For Using a Canadian Contractor.jpgUsing contract workers has become an increasingly popular option for many businesses. In fact, 1.8 million Canadians are currently in temporary and contract employment. With this large pool of talented workers so readily available, it’s no wonder you might be thinking of using a Canadian contractor.

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However, there are some important things you need to consider before hiring contract workers from Canada. The laws are different and without complying with them, you can find yourself in a risky legal situation. Additionally, if you don’t understand exactly what your business’s needs are, you might find yourself hiring the wrong person.

Avoid the risks and keep reading for five tips when using a Canadian contractor.

1. Know Your Business Needs

Using a Canadian contractor can be a smart decision—but only if you understand exactly what your business needs. It would be a mistake to hire someone who you thought was a great fit, but didn’t have the skillset you ended up needing. Evaluate the position that needs to be filled and consider the skillset each candidate must require. Remember to think about the future needs of your business as well. Hiring someone that can be adaptable as your business grows and needs change is always a smart decision.

2. Understand The Laws

Canadian laws are different, especially when it comes to using a Canadian contractor. The Canada Revenue Agency (CRA) and a long list of other federal and provincial ministries are all motivated to question the status of your contract workers. Due to the savings in cost, some businesses have taken advantage of the system, wrongfully classifying employees as independent contractors to avoid providing benefits and in turn, saving money. For this reason, it’s no surprise there’s been a rise in audits and investigations regarding the classification of independent contractors. That’s why it’s important you understand the laws when using a Canadian contractor. Otherwise, you’ll face the long list of fines and penalties.

3. Consider an Employer of Record

There’s a lot to consider when using a Canadian contractor. From hiring to payments, things can get complicated, especially as you continue to run other aspects of your business. If things seem overwhelming during your search for a contractor, it may be time to consider outsourcing the work to an Employer of Record. An EOR handles all aspects of working with a Canadian contractor. From hiring, training, to payment schedules, everything is handled for you. One of the greatest qualities of an EOR is the expertise in Canadian laws and regulations. You won’t have to worry about late payments, misclassified workers, or improperly filed taxes: professionals with years of experience handle everything with care and a watchful eye.

4. Make Sure You’re Impressed

It’s important you’re impressed and satisfied with the quality of work you receive when using a Canadian contractor. If you’re not, you’re allowed to look for other candidates. Remember, a contract is only a set amount of time, meaning if you aren’t happy with the work, you have no obligation to continue. On the other hand, if you are impressed, you have every reason to talk with the contractor and see if they’re interested in extending the life of the contract. Who knows—you might find yourself wanting to hire them full time.

5. Ask For Recommendations

If you’re having a hard time finding the right Canadian contractor, it’s smart to ask for recommendations. This is a great tip for a few reasons. Firstly, it means someone else has worked with them before and has been impressed with the work. It also means the worker is familiar with the process and daily life of being a contractor, bringing experience to the table other’s may not have.

Using a Canadian contractor is a smart move for many growing businesses. Finding a temporary worker to fill the gabs allows growth to continue while respecting your budget. Remember, reaching out to an EOR is always easy if the process gets too unclear.

What US Companies Need to Know about Paying Employees in Canada

Topics: Business Expansion

What You Need to Know as an American Businesses Expanding into Canada

Posted by Corinne Camara

|

Aug 28, 2017 9:00:00 AM

What You Need to Know as an American Businesses Expanding into Canada.jpgFor many American businesses, expanding into Canada is a no brainer. The similar consumer base, close proximity, and growing market make it the perfect country for expansion. However, foreign employers are also somewhat hesitant to expand due to the complicated differences when it comes to registering a business in a new country.

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From employing new staff to complying with different laws, the process of expanding into Canada can be slow and frustrating without understanding some key tips. Continue reading to see exactly what you need to know as an American business expanding into the North.

The Laws are Different

The most important thing to understand before expanding into Canada is the differences in laws and regulations. While there are many similarities, there are dozens of differences that if ignored, can leave your business in a pile of expensive legal troubles.

US companies must ensure Canadian employees are classified correctly and paid the correct Canadian payroll taxes. If employees are misclassified, US employers can find themselves in trouble with the Canadian Revenue Agency (CRA).

Canadian payroll taxes also follow a different schedule. While dates vary depending on the type of business, to avoid fines or audits, US employers must be punctual and ensure taxes are submitted correctly and on time.

Canadian employees are also subject to deductions such as Canadian Pension Plan (CPP), Employment Insurance (EI) and income taxes. US companies must ensure these three deductions are understood while calculating Canadian payroll taxes.

HR Is Important

Human resource management is vital when expanding into Canada. From recruiting and training employees, managing health and safety regulations, to handling sensitive employment issues, efficient HR management is one of the keys to success. However, it’s all too often overlooked.

Many business owners underestimate the importance of efficient HR while expanding. As the business owner, your responsibilities will be tied up in managing other aspects of expansion, leaving HR on the backburner. For businesses expanding into Canada, a Professional Employer Organization (PEO) is often used to handle all HR responsibilities. Not only does this ensure professionals handle all HR practices, but you’ll be able to focus on other more important business functions.

There Will Be Stress

Yes—expanding into Canada is stressful. It takes time, hard work, and an abundant knowledge of Canadian rules and regulations. Before expanding, it’s important to evaluate what you can do to streamline the process and reduce any situations where added stress may have the chance to occur.

Have an understanding of your customers and the competition. While e-Commerce sales in the country topped off at $22.9 billion in 2014 and are expected to rise, it’s important to consider long-term success. Ensure you have enough finances and resources set aside to support yourself should things get difficult. It’s also important not to expand alone. Make sure your team is just as committed as you are and ready to take on the challenge of expansion. Lastly, seek help where necessary. For instance, a PEO can be your right hand man when expanding.

A PEO Can Help

A PEO (also known as an Employer of Record or EOR) offers international companies seamless expansion into Canada without the risks that come from expanding alone. From understanding foreign employment compliance, handling payroll systems, and staying on top of HR functions, a PEO shouldn’t be forgotten when the conversation of expansion arises. If successfully expanding into Canada is important to you and your business, make sure you do things right—get in touch with a representative today and see how a PEO can make your expansion easier.

What US Companies Need to Know about Paying Employees in Canada

Topics: Business Expansion

Why You Should Consider Hiring Canadian Contractors

Posted by Anna Mastrandrea

|

Aug 25, 2017 12:30:00 PM

Why You Should Consider Hiring Canadian Contractors.jpgFor many businesses, especially small businesses, hiring Canadian contractors can be a smart solution to many business hiccups. As the seasons change, so does the demand for different projects and different skills. Hiring an independent contractor can be the most obvious solution.

As independent contractors become an increasingly popular solution for many businesses, one might find themself asking why. What exactly are the benefits of hiring independent contractors? Why should you consider hiring Canadian contractors? Read on to gain a better understanding of why you should consider hiring independent contractors from Canada.

It's Easier Than You Think

For many, working with international contractors is avoided due to confusion regarding aspects of payroll or HR services. While there’s a lot to know about working with Canadian employees, many payroll companies can help simplify the process. Now, it’s easier than ever! No longer will you have to worry about the complications, instead you can focus on finding independent contractors who are the perfect fit, regardless of where they are from.

Project Flexibility & Managing Workloads

By 2020, half of the workforce will be made up of contract workers, proving that working with contractors is becoming an increasingly popular solution for managing changing workloads. Hiring contractors allows you to bring on more staff when you need them, without making the commitment of hiring someone full-time. For instance, perhaps spring is an extremely busy season for your business and you want to hire help for just those few months. Or maybe a project needs more help than you anticipated. Working with a contractor allows you to find workers for those seasons or projects, with no obligation to renew a contract once it expires. This allows your business to grow and move forward, without putting your budget or clients in jeopardy.

New Pool of Skills

In 2010, 2.7 million Canadians were self-employed—and the numbers continue to rise. This means there’s an entire pool of potential job candidates with expert skills that one might not be able to find anywhere else. Limiting your search to one place can leave you hiring someone who might not have the exact skillset you want. Hiring Canadian contractors allows your business to explore the skillset of thousands of more experts, ensuring that you find the right fit for the job. Don’t risk hiring the wrong person and consider expanding your search to new borders.

Cost Savings

When you hire a new full-time employee, you’re responsible for paying for more than an annual salary. Training, vacation time, benefits, and all the bookkeeping regarding a new hire can actually end up costing you more than hiring Canadian contractors. Contractors don’t require training or any type of benefits. Because they’re not full-time employees, you won’t have to worry about workers compensation or unemployment insurance. Additionally, contract workers usually come with their own equipment, meaning you won’t have to pay to have them suited for the job. While there are some things you should know abut paying Canadian workers, it’s safe to say that outsourcing payroll duties can help you simplify the process.

It’s a Test Drive

For many businesses, working with contractors can be seen as a “test-drive” before hiring the worker full-time. You wouldn’t buy a car without getting it on the road first—the same goes for new employees. Hiring Canadian contractors can allow you to get to know a worker and their skills before making the commitment of hiring them full-time. Once you’re confident in their abilities or impressed by their work, you can always decide to hire them. It’s a safe and cost effective way to streamline the hiring process.

What US Companies Need to Know about Paying Employees in Canada

Topics: Business Expansion

Is It Time for Business Expansion? 13 Questions to Ask

Posted by Corinne Camara

|

Aug 11, 2017 9:00:00 AM

Is It Time for Business Expansion 13 Questions to Ask.jpgHow do you know when it’s time for business expansion? Sometimes you can’t see the answer to the question right away. You want your business to grow without putting yourself in a high-risk situation. How can you deem whether it will fail or be a booming success?

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There are questions you can ask to help determine whether it’s time to expand or not. Keep reading to see 13 questions you should ask yourself if you’re really considering business expansion.

1. Where will you expand?

You need to determine where you plan on expanding your business. Expanding into a country with similar consumer needs and client base will help limit risks, as you know the market has a need for your product or service.

2. How will you handle finances?

Business expansion is impossible without the ability to handle finances and payroll. Outsourcing payroll has become an increasingly popular option, especially for small businesses or businesses that are expanding.

3. How is your business unique from competitors?

Consider if there are any competitors offering the same services or products as your business. What makes you different and why should a consumer choose you over the “other guys”?

4. Are there new laws or regulations you should be aware of?

Different countries have different laws. If you don’t comply with them, you can find yourself in a significant amount of legal troubles. Ensure you know the regulations of a country before you expand, and consider working with a PEO firm for further assurance.

5. How will you maintain relationships with your current clients?

Did you know 67 percent of customers would churn if they encounter a bad experience with a company? Have a clear plan in place for maintaining relationships with your current customers before expanding your business.

6. Do you have enough cash flow for expansion?

If things go south, do you have enough money saved to help with damage control? If things go well, do you have enough for further expansion?

7. Have you done your research on new markets?

Expanding into unfamiliar territory is high risk. Ensure you know the new market inside and out before committing to opening a new location in a new city or country.

8. How will you hire new employees?

Recruitment and HR is time consuming. Have you considered how you will handle this task? Outsourcing HR responsibilities is another great move for businesses that are new to a country.

9. Is there a significant downside or loss if you do not expand?

Is there an opportunity screaming your name? If your business doesn’t expand, will you be missing out on something great?

10. How will you manage the stress that comes with expansion?

Studies suggest that activities such as reading, yoga, and laughing can greatly reduce stress levels. Do you have a plan in place for managing the added stress of business expansion? Does that plan extend to all staff?

11. How will you maintain quality service?

It would be a mistake to compromise your businesses service or product quality for expansion. Will you be able to ensure that your product’s quality remains unscathed by business expansion?

12. Are you committed?

This might seem like a silly question, but it’s perhaps the most important. Expanding a business takes time, hard work, and commitment. Is this a business venture that you are 100 percent ready to embark on? If there’s even a hint of doubt, it might be time to reconsider.

13. How do you get started?

If you’ve answered all the questions and still think business expansion is the logical next step, it’s time to get things moving. Request a quote from The Payroll Edge and see how a PEO firm can make the transition faster, more cost effective, and risk-free.

What US Companies Need to Know about Paying Employees in Canada

Topics: Business Expansion

Understanding the Benefits and Risks of Hiring Canadian Employees

Posted by Karen McMullen

|

Jul 10, 2017 9:00:00 AM

Understanding the Benefits and Risks of Hiring Canadian Employees--.jpgWith Canada's quality pool of educated job candidates, many small businesses in the United States are choosing to expand into their northern neighbor. As with any major business move, this decision comes with significant benefits and risks.

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Fortunately, by understanding all aspects of foreign employment compliance, your business can execute it successfully. Use this guide to understand the basic benefits and risks of hiring your new Canadian workers. 

Benefits

  • Quality Workforce: Employees in the United States and Canada have similar educations and work ethics, so it is reasonable to use a similar hiring process for both. Canada's lucrative economy also makes education more accessible than it is in other countries.

 

  • Convenient Travel: Outsourcing in a neighboring country makes it simple to travel in between for business reasons. With a passport or an enhanced drivers license, American citizens can easily travel back and forth.

 

  • Shared Language: By expanding into Canada, most of your potential employees will likely be fluent in English. This is convenient when it comes to management and staffing your Canadian office.

 

  • Common Bilingualism: In addition to speaking English, many Canadians also speak French. Having multilingual employees is also a benefit, so take advantage of this.

 

Risks

  • Payroll Details: It may be difficult to navigate payroll differences between USA and Canada. You will need to know all of the payroll laws and regulations that determine wages and overtime.

 

  • Employment Laws: Just as you will need to figure out how to pay your employees, you will also need to navigate actual employment regulations. Just as the United States has hourly limits and federal holidays, so does Canada. You will need to know these rules ahead of time.

 

  • Taxation Regulations: When it comes to foreign employment compliance, taxation can be one of the riskiest details. In fact, small businesses have been identified as the biggest source of uncollected taxes. For this reason, the CRA is directing its attention more on small businesses.

 

  • Employee Benefits: Health insurance in Canada is very different that that in the United States, so your benefits package may have to change. Your company will need to take the time to find out what your Canadian employees will need in their benefits.

 

Stay Compliant

The importance of foreign employment compliance cannot be overstated. By complying with all regulations, your company will avoid major employment lawsuits. To be sure that you are addressing every detail, consider working with outsource payroll processing and HR management firm. These professionals will keep you on track as you enter this new phase of your company. 

What US Companies Need to Know about Paying Employees in Canada

Topics: Business Expansion

Answering the Question: Can a US Employer Hire Canadian Employees?

Posted by Corinne Camara

|

Jun 23, 2017 9:00:00 AM

Answering the Question Can a US Employer Hire Canadian Employees--.jpgPicture this, you’ve just been offered an amazing business venture in Canada. The offer is a great opportunity to generate revenue for your business and establish meaningful relationships with Canadian clients. One problem, your company is located in the United States and you don’t currently have an employment presence in Canada. What do you do? Can you even do this—can a US employer hire Canadian employees?

Many businesses face this challenge regularly, but the answer is actually more simple than you might think. The question, can a US employer hire Canadian employees can be answered with a simple yes… with some restrictions. To make sure you’re conducting business correctly in Canada, you’ll need to approach the employment and payroll process in the proper manner.

Download our free guide on what US companies need to know about paying  employees in Canada.

Know the CRA Regulations

The Canadian Revenue Agency is the Canadian equivalent of the IRS. This bureau oversees all taxes relating to payroll and withholdings. Perhaps their most relevant regulation applicable to your situation is employee misclassification.

Many businesses try to get around paying for Employment Insurance and other deductibles by classifying employees as independent contractors. There’s a great difference between employees and independent contractors under federal law, and if you’re caught by the CRA misclassifying your Canadian employees, this can have serious repercussions.

As an American business, you will still be liable for serious fines and potentially a criminal sentence from the CRA. It won’t just be you getting into trouble, but also your Canadian employee. They will have to pay out of pocket expenses and penalties, which will seriously harm the relationship between the two of you.

Employee misclassification is too risky. There are many other ways to employ Canadians without breaking the law. 

Independent Contractors

While classifying employees as independent contractors can be dangerous, actual independent contractors can be great for your business. You won’t have to worry about paying any Canadian employment taxes, and the job will still get done by the contractor or contractors of your choosing.

While the idea of an independent contractor sounds great, many employers don’t go this route because they like to exercise their control. With an independent contractor, you have to be willing to step back from the project and let them do their work on their own schedule with their own materials. Your control will have to be limited or you risk venturing into employee territory.

If you’re able to step back from the project and let your independent contractor take the reins, they are a great option for international companies looking to get work in Canada. If you don’t think this is feasible for your company, hiring a Canadian Employer of Record is the next best thing.

Employers of Record        

Most American companies that get work in Canada don’t actually want to set up a physical presence in the country. That means if they’re not hiring people as independent contractors, they’re better off hiring someone in Canada to do their taxes and payroll for them.

This is where a Canadian employer of record can come in very useful. When you hire an employer of record, you hire a temporary legal employer to conduct your human resources and payroll services. An employer of record will help your company abide by all Canadian legalities and teach you everything you need to know about Canadian payroll regulations.

How can a US employer hire Canadian employees through an employer of record? It’s simple really. First you’ll need to find a reliable employer of record to help provide you with payroll and back office solutions. Once you’ve found the right fit, your employer of record takes over from there. They manage all payroll, support, clearances, screenings and compliance services. It’s that easy.

Get started today and see how an employer of record can change your over-the-border business ventures for the best.

What US Companies Need to Know about Paying Employees in Canada

Topics: Business Expansion

Small Business Lending is Rising in Canada

Posted by Shannon Dowdall

|

Jun 12, 2017 9:00:00 AM

Small Business Lending is Rising in Canada--.jpgFollowing the U.S. election, there is a large amount of uncertainty regarding the Canadian economic climate. Due to the strong ties between the U.S. and Canada, it's certain that there will be some changes regarding trade under the Trump administration.

While many Canadian economists and public policy experts have expressed concern for the next four years, data shows that following the election, small business lending in Canada actually rose.

During the month of October, the PayNet Canadian Small Business Lending Index rose from 116.5 to 119.9, and lending for mid-sized companies rose from 211.3 to 218.3.

Expectations of Growth

Following the crash in oil price, small business lending in Canada dropped significantly. This affected the majority of 2015 and 2016, which is what made November's lending hike all the more surprising.

PayNet President Bill Phelan is also optimistic regarding the potential for small businesses, especially since they have been shown so much opportunity recently.

“Once you can stabilize the economy, you can position it for growth,” said Phelan.

CNW cites that 81% of Canadians were optimistic regarding the future of small business following the election and heading into the new year.

“Hiring, inventory, marketing, and equipment are inputs that can come up quickly,” said Gary Fearnall, the Canada Manager for OnDeck, a small business lender. “It's important to be ready to respond to new opportunities when they arise.”

That said, small and mid-sized businesses in Canada should anticipate growth this coming year and poise themselves for such.

Who Can Capitalize?

Even U.S. companies may be looking to capitalize on the rise in small businesses in Canada by hiring Canadian workers and potentially opening a Canadian branch to expand.

In order to do so, however, these businesses need to consider hiring a payroll outsourcing provider in order to comply will all of the rules and regulations regarding Canadian employment. While the U.S. and Canada share a border, they do not share labour laws, and foreign employment compliance is hugely important.

Outsource Payroll

Outsourcing payroll for small companies is especially wise considering all of the hoops that need to be jumped though to ensure proper paperwork filing. The risk of filing this paperwork incorrectly can be hugely expensive and can set any business owner back quite a bit even with just one mistake.

Payroll for small companies is what the Payroll Edge does best, so if you're looking to expand your small company knowing that there are opportunities in Canada, contact us today. 

7 Signs It's Time to Outsource Payroll

Topics: Business Expansion

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