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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. 


  • 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.



  • 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.

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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

How Exactly Can Payroll Companies in Canada Help Your Business?

Posted by Ray Gonder


May 26, 2017 9:00:00 AM

How-Exactly-Can-Payroll-Companies-in-Canada-Help-Your-Business.jpgAre you thinking of expanding your workforce into Canada? Many American companies decide to cross the border and hire Canadian employees, so you’re certainly not alone. Canada is similar to America in many ways, like language and culture, which makes it an obvious choice for an international expansion.

However, Canada is still a different country, and it has its own set of rules and regulations regarding employment. For this reason, paying employees in Canada can pose logistical problems for your business.

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Fortunately, there are payroll companies in Canada that can help your expansion go smoothly. Here are some ways payroll companies can help your US-based business.

Manage Deductions for Your Employees

Canada, like the United States, requires employers to withhold various deductions from their employees’ paycheques. However, the specifics of the deductions are very different. When you hire Canadian employees, you need to learn about a whole new set of deductions, and these new deductions can be overwhelming.

For your American employees, you know you need to deduct social security tax, Medicare tax, federal income tax, and various local tax withholdings, like city taxes or county taxes. In Canada, these deductions don’t apply. In Canada, you need to deduct Canada Pension Plan (CPP) contributions, income tax, and employment insurance premiums. If some of your new employees are in the Canadian province of Quebec, there are additional deductions, like the Quebec Parental Insurance Plan.

When you work with a payroll company in Canada, you don’t need to worry about figuring out Canadian deductions. The payroll company calculates and deducts all applicable deductions for you.

Send Remittances to the Government

You’re used to sending remittances to the IRS, and a similar system is in place in Canada. Employers need to send the income tax, CPP, and employment insurance premiums they collected to the Canada Revenue Agency (CRA) on a regular schedule.

Before you can send remittances to the CRA, you need to register for a CRA account. You need to keep track of your remittance schedule—which can be range from four times a month to once a year, depending on your company—and send in payments on time. When you’re already worried about tracking remittances for the IRS, the thought of dealing with another tax agency can be stressful.

Payroll companies in Canada take control of your remittances. You don’t need to stress about setting up accounts with the CRA or remembering when your payments are due. Instead, you can spend your time focusing on your company’s expansion strategy.

Ensure Compliance with Regulations

You probably have a good grasp of the many regulations that apply to your US-based workforce, but a lot of the rules are different up north. When you hire Canadian employees, your company needs to comply with the laws in Canada, as well as the laws in your employees’ provinces. This is no easy feat since there are more than 190 provincial and federal regulations that apply to payroll.

If you don’t follow one of these regulations—even if it was an innocent mistake due to ignorance of the law—your company could be subjected to large fines. Noncompliance can even lead to criminal charges, so it’s essential that you follow every applicable regulation. When even a careless mistake or a small oversight can get your company into trouble with the Canadian authorities, hiring Canadian employees can be overwhelming.

For payroll companies in Canada, complying with Canadian regulations is nothing new. They know the laws like they know the backs of their own hands, and they can ensure your company’s payroll doesn’t get you into trouble.

What Are You Leaving to Chance by Handling Payroll on Your Own

Topics: Business Expansion

How Can a US Employer Hire Canadian Employees?

Posted by Ray Gonder


Apr 3, 2017 9:00:00 AM

How-Can-a-US-Employer-Hire-Canadian-Employees.jpgCan a U.S. employer hire Canadian employees? Whether establishing a physical presence or remote, this should be a primary concern for American businesses considering expansion up north. Read below to learn how U.S. employers can hire Canadian workers.

Why Hire Canadian Employees?

Hiring Canadian employees may not have crossed many employer’s minds before, but it’s certainly a realistic option for a number of reasons.

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By employing Canadians,U.S. employers can take advantage of the market up north, expanding their geographic area, customer base, and services offered. 

Canada may offer a surplus of workers for a specific industry who are simply unavailable at the current time to U.S. employers. Hiring Canadian employees exposes U.S. businesses to a highly-skilled workforce with experience in a variety of fields. 

Before hiring Canadian workers, you’ll need to research how you can. One of the easiest ways to manage Canadian employees is by contracting them through an outsourced provider, instead of hiring directly. These agencies have the best understanding for compensating these employees,handling benefits, and complying with work regulations. If you’re thinking about hiring directly, consult your in-house legal staff, or a local law firm, to determine the correct documents needed for Canadian employment, tax filing, and wage compensation.

Research the Labour and Employment Laws

Can a U.S. employer hire Canadian employees and follow the same employment laws in the States? Not at all. Canadian employment and labour standards are much different from those south of the border. To ensure a U.S. business meets the current guidelines, Canadian employment regulations will need to be reviewed–at both the federal and provincial level. Researching beforehand will ensure a U.S. business is aware of the necessary laws. 

As each province has its own employment standards, each act will need to be individually reviewed for the specific location of the Canadian employee. Wage rates vary across thecountry, meaning the minimum rate must meet the particular province’s employment standards. Different provinces set different pay periods for when employers must distribute wages–whether it’s biweekly, weekly, or simply as the employer sees fit. Also be aware of human resources: health and safety, hiring and firing practices, and employee benefits, to make sure your Canadian employees receive everything they’re entitled to. 

Other matters U.S. employers need to review include the difference in holiday schedule– Thanksgiving, Family Day, Canada Day, and the Fourth of July, (to name a few,) differ in these countries. American employers will need to be aware of unions and understand their authority regarding Canadian employees and benefits. Employment contracts vary in terms and standards. For example, non-compete clauses in Canadaare worded differently from those in the States. Canadian courts place more emphasis on balancing workers’ rights with employers’ rights torun a business.

Consider Partnering

Can a U.S. employer hire Canadian employees and seek additional help in Canada? You bet. If you’re still unsure about hiring Canadian employees as a U.S. employer, considering partnering with a Canadian organization to ensure your U.S. business meets all the requirements.

A professional employer organization, or employer of record (EOR) in Canada, is an incredibly useful team who covers the time-consuming and complex matters of employment in Canada. Acting as the legal employer for Canadian employees, they’ll handle payroll calculation and distribution, benefits, legality, and any other issues that could arise. EORs are already familiar with the system, making them a reliable and knowledgeable resource to ensure compliance and that matters are properly covered.

Providing assistance in many departments, EORs assist with global management services to handle Canadian payroll duties and regulations, and cover the brunt of legal responsibility. Partnering with an EOR will ensure your businessis compliant and operates error-free in Canada.

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

Topics: Business Expansion

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