Managing Canadian payroll regulations can be as difficult, or as simple, as you want. Like most business leaders, you probably have a penchant, and preference, for getting things done yourself. You like the hands-on approach, and don’t delegate tasks unless you have to. On the other hand, when it is time to delegate, you choose the best person for the job, and let them do the job you chose them for. If you’re trying to navigate Canadian payroll regulations, then you have the same two basic options. You can try the hands-on approach, and focus all of your time and efforts on learning a completely foreign system from the ground up, or you can delegate the task to somebody who already knows the Canadian payroll regulations. The route you choose will largely depend on how much money and effort you are willing to invest, and how quickly you need results.
Many, Many Steps to (Hopefully) Success
Before you start hiring and paying Canadian employees, there are quite a few steps you have to take. U.S. and Canadian payroll regulations are entirely different creatures. Your existing system for managing and paying employees simply won’t work with Canadian employees. You’ll need new software, new filing systems, and new (or completely retrained) staff before you get started. This will all be in addition to your existing payroll system and personnel.
Once you have a second payroll system up and running, you can move on to step two—setting up a business presence inside of Canada. This can be challenging in itself as registration procedures are different from province to province and have different rules depending on the type of registration you would like.
At this point, you need to set up all of your government taxation accounts, register with worker’s compensation and arrange banking and insurance infrastructure.
Now you’re ready to hire your first employee. You’ll have to verify their identity, establish their right to work, ensure that they’re properly classified, and provide any required training. If you’ve completed all of these steps without making a single error, your new employee is ready to start their first day at work.
At this point, you’ve expended a ton of money and energy just getting your first employee on board. If you made any mistakes, the amount of time and money spent probably increased exponentially. If you make any mistakes in the future, there will be more expenses to deal with.
A Line on Success
The ability, and willingness, to delegate is a powerful business skill. Too many business leaders stray far outside of their zone of expertise and end up needing help to find their way back. Delegating difficult or time-consuming tasks to a more experienced professional is the better business decision. When it comes to managing Canadian payroll regulations, delegating the tasks to a Canadian-based Employer of Record (EOR) minimizes effort, expense, and risk.
Some Canadian payroll service providers (like The Payroll Edge) are already set up to act as full-service employers for Canadian workers by providing EOR services. They have established all of the necessary accounts and infrastructure, and cleared all of the administrative hurdles. All that is required to put them to work for you is a telephone call. Instead of spending months, and a small fortune, establishing a Canadian presence, you could spend a few minutes on the phone and be up and running in hours or days.