The business world is beginning to think outside the box more, as the pressure of technology and globalization set in. The rules have changed, the game has changed, and that has people looking for alternative solutions to age-old problems.
A Canadian EOR (or an Employer of Record) isn't a new business, but it is one that has been talked about more and more lately. They specialize in business solutions of all kinds—a kind of partner that helps businesses with various tasks. In some cases, they help manage peripherals, like payroll, taxes, and human resources. In others, they step up and help businesses expand to new environments and new countries. They've been increasing in popularity a great deal in the last few years and it's no wonder. That said, there are still some questions floating around, ones that need answers. What exactly is an EOR? What can they do? How do they work? Luckily, we have all those answers and more.
In terms of a Canadian EOR, they're perhaps most well known as specialists in aiding business expansion for companies of all sizes and types. Of all things, expanding is no doubt one of the most challenging journeys a company will ever go on – there's researching the lay of the land, learning new laws, registration and administrative infrastructure, hiring and managing foreign employees. It can be overwhelming for even massive corporations and it takes a lot of time, a lot of money and a lot of patience. With luck, that's where EORs come in and, for the most part, why they've been increasing in popularity.
A Canadian EOR acts as the legal employer for your foreign workers—that is, they officially employ them, pay them, manage them and all other things that are necessary, and you simply contract your workers from them. Since the EOR is already well established in the country, both culturally and legally, you gain the benefit of their expertise. You choose the employees, you draft the employee agreement, and best of all, you can skirt all the tedious paperwork and registration usually needed to expand.
Naturally, an important question that comes up on a regular basis is the legality of the situation. You'll be pleased to know when working with a Canadian EOR, regardless of where in the country you do it, you're one hundred percent in accordance with the law. With an EOR at your side, you'll never have to worry about complicated legal compliance. They'll even ensure your taxes are paid to the Canadian Revenue Agency on your behalf, which is one less thing to worry about.
Payroll, Law, and Human Resources
It's not just business expansion that an EOR specializes in—it's all the managerial tasks associated with employee management as well. Especially as a foreign company, it will be challenging tackling new human rights and labour laws, tax laws, and deductions, all while following both your native laws and Canadian laws to boot. EORs are experts in payroll and payroll efficiency, which means you not only get the benefit of an employer organization, but that of a payroll service provider as well. That means you don’t have to worry about processing payroll in a new country with new regulations, you can entrust that duty to the EOR and their teams of experts. A Canadian EOR can also offer benefit package deals, which can help attract and retain only the most skilled employees and, because they're so familiar with the laws, can ensure you're up to code in all regards. In effect, their job is to eliminate as many obstacles as possible so your business can operate smoothly.