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How to Engage an Employer of Record the Wrong Way

Posted by Shannon Dowdall

|

Mar 21, 2018 9:00:00 AM

How_to_Engage_an_Employer_of_Record_the_Wrong_Way.jpgYou’ve heard all about the benefits of teaming up with an employer of record in order to expand your business operations into Canada. Legislation can change from country to country and even from province to province, which can complicate hiring, termination, and even calculating vacation time and holiday pay.

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

Working with an EOR solves all these issues. If you’ve heard others warn you of the “dangers” of teaming up with an employer of record, you can almost bet these folks went about engaging the EOR the wrong way!

If you’re concerned about partnering with an employer of record, learn what not to do when you approach them.

You Don’t Set Expectations

What do you want out of your partnership with the employer of record? With all the talk of advantages, you may think the sky’s the limit. You want whatever the EOR can do for you.

Keep in mind employers of record aren’t miracle workers. They’re very helpful and, when engaged correctly, they can help keep your business on the straight and narrow. If you can’t tell them what you want or what you expect, they probably won’t be able to live up to your standard.

Instead, think about what your business needs are before you approach the EOR. Once you have a clear idea of what you need, you can talk to your potential partner about their services and how they can meet those needs.


You Don’t Communicate Clearly

Setting expectations is part of a larger task: communication. Many business owners and managers who try to connect with EORs and fail do so because they don’t communicate properly.

Keep in mind poor communication can happen on both ends of the line. Representatives at the EOR’s offices may not be 100-percent clear or they may promise too much. They might fail to communicate important details. Similarly, you may forget to mention certain details or decide not to ask when something wasn’t clear.

If something is unclear, ask. Don’t be afraid to restate your points or to mention details a second (or even third) time. Good communication is key to a great relationship with your employer of record.

You Weren’t Truthful

Some company owners and business managers like to think they can pull the wool over a potential partner’s eyes. In the end, this strategy almost always backfires, as the truth will come to light.

Take, for example, a company that wants to team up with an EOR, but their finances aren’t quite in order. The client decided to disguise the truth about the financial situation. The employer of record initially didn’t ask them to provide funding for payroll, believing the company to be in good financial standing.

Just before implementation, however, someone at the EOR discovers evidence of the funding issue at the client company. Maybe an initial payment bounced or a lien came to light. Either way, the EOR now demands upfront payments for payroll to protect their own issues. The client company is furious and the deal collapses.

This wouldn’t have happened if the client company was just upfront and honest in the first place. While it may have meant they received less favourable terms, they would have still had a good relationship with their EOR and help with their payroll.

You Didn’t Read the Fine Print

One other issue might have happened in the example scenario above. Maybe the client didn’t read the fine print. Perhaps they thought the EOR wasn’t asking for an upfront payment, but the contract said otherwise. The client was thus surprised and thought this was “changing” the terms of the agreement.

Be sure to read the fine print of any contract you sign, whether it’s with an employer of record or another service provider. Engaging an EOR is easy, so long as you do it the right way.


What US Companies Need to Know about Paying Employees in Canada

Topics: Employer of Record

5 Signs You Need Employer of Record Payroll Services

Posted by Karen McMullen

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Feb 28, 2018 9:00:00 AM

5-Signs-You-Need-Employer-of-Record-Payroll-Services---compressor.jpgPayroll and HR are large and sometimes time-consuming tasks. The larger and more varied your workforce, the more complex these activities become. Things certainly get more difficult when you have employees operating in other countries. Since payroll and HR also have a legal component, you want to be sure you’re doing things right.

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

One thing you can do to make these tasks easier for your HR department staff is use employer of record payroll services for your employees working in Canada. You may have considered employer of record payroll services before, but you weren’t quite sure they were right for your business. If you’ve noticed any of the following signs in your business, however, it could be time to adopt EOR services.

1. You Were Audited or Fined

Were you audited or fined for your Canadian payroll taxes last year? If so, it could be time to adopt employer of record payroll services for your business. 

Paying employees in different jurisdictions is difficult, let alone paying employees operating in a completely different country. Your HR staff members are likely expert at administering payroll in your home country. How familiar are they with the Canadian legislation about payroll taxes and record-keeping? 

You may have calculated payroll taxes incorrectly or submitted your return at the wrong time based on a lack of familiarity with the Canadian payroll regime. This can result in fines or audits. Using employer of record payroll service can help you avoid these sorts of mistakes, along with costly audits and fines.

2. You’re Brand New to Canada

Have you ever operated in Canada before? Whether you’ve hired one Canadian employee, arranged to work with a contractor, or have multiple employees in Canada, employer of record payroll services could be the solution you’re looking for. 

When a foreign business expands into Canada, the HR department often lacks the intimate knowledge of the Canadian legislative scene. As a result, payroll and HR errors are common, which can lead to audits and fines. By employing EOR services right off the bat, you can protect your business and ensure you’re managing HR and payroll correctly.

3. You Expanded to a New Province

Maybe you’ve been operating in Canada for a while, but you’ve just opened a branch office in Manitoba. Do you know all the differences between payroll in Ontario and Manitoba, or BC and Nova Scotia? If not, it’s time to call in employer of record payroll services. They’ll be sure your payroll and HR activities are compliant, no matter which province your employees live and work in.

4. Compliance Is a Concern

You haven’t been audited or fined yet, but it was a near-miss. You noticed last year that there were mistakes in the payroll. Maybe your employees complained or brought errors to your attention. Maybe you’re aware of new legislation or changes to old laws, but you’re not entirely sure how they’ll affect you.

Any which way, the outcome is the same. You’re concerned about compliance. Partnering with a provider of employer of record payroll services can put all your worries to rest.

5. You Don’t Have Time

Have you checked in with your HR staff lately? How do they feel about administering payroll for workers operating in different countries? If your business is expanding in all directions, chances are your staff feels a little overwhelmed! They may be rushing to get payroll done and making mistakes along the way. They may not have time to familiarize themselves with the ins and outs of different payroll regimes.

If you just don’t have the time to manage payroll for your international employees properly, consider employer of record payroll services. They could be just the solution you’re looking for.

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

Topics: Employer of Record

What to Expect from Canadian Employer of Record Services

Posted by Corinne Camara

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Feb 23, 2018 9:00:00 AM

What_to_Expect_from_Canadian_Employer_of_Record_Services.jpgDo you employ people in Canada but have your head offices located in another country? Maybe you’ve hired some temporary or contract workers to complete projects for you. Whatever the situation, you may be wondering about Canadian employer of record services for your business.

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


What Is an Employer of Record?

When you hire workers in another country, you may not want to be responsible for them—you want the work to be completed, but you don’t want to have to deal with hiring, termination, payroll, taxes, or any HR compliance. You don’t want to worry about a new country’s tax code or employment standards.  

Of course, someone has to be responsible for issuing payment, withholding taxes, and so on. Someone must be listed as the employer. An employer of record provides this service to you. They’re listed with the Canada Revenue Agency as the workers’ employer, hence the name “employer of record.”


What’s the Difference between an EOR and a Staffing Firm?

Some people believe employers of record are the same as staffing firms. While they may be similar or offer similar services, there are some key differences between these organizations.

A staffing firm will hire and place employees with your business. They may include employer of record services as part of their client offerings, but not always. In Canada, these services don’t need to be offered by a staffing firm. The two are different businesses entities, although employers of record often work with staffing firms.


What Can You Expect?

If you’re interested in Canadian employer of record services, you may be wondering what you can expect and why you’d choose these services over another option.

Canadian employers of record provide comprehensive payroll and HR services for your business. They act as the legal employer of the workers, taking the load off your in-house team. This is particularly useful for employers who hire employees on a temporary basis or hire workers in different jurisdictions.

These services allow another entity to act as the legal employer to your Canadian employees. They handle payroll, including taxes and withholdings, the calculation of vacation time and pay, and so on. They won’t, however, handle the day-to-day management of your workers.


Work with an EOR

Canadian employers of record handle everything you’d need to, without you needing to worry about the ins and outs of Canadian payroll or varying legislation in different provinces. Since the employee technically isn’t yours, someone else is legally responsible.

They’re also a great option whether you work with a staffing firm or not. If you’ve been wondering how you can minimize the burden on your payroll and HR team while ensuring you stay compliant in a new jurisdiction, consider Canadian employer of record services for your business. It could just be the right solution.


What US Companies Need to Know about Paying Employees in Canada

Topics: Employer of Record

4 Signs Your Company Needs Employer of Record Services

Posted by Stacey Duggan

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Feb 19, 2018 9:00:00 AM

4_Signs_Your_Company_Needs_Employer_of_Record_Services.jpgEmployer of record services have been growing in popularity in recent years. As the size of the contingent workforce has grown, and more businesses and industries have adopted contingent working arrangements, the need for these services has also grown.

The contingent workforce is predicted to keep growing into the future, which means EOR services aren’t going anywhere any time soon. In fact, you might be looking at adopting them for your business in the near future. You may even need these services right now!

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

How can you tell if you need to adopt employer of record services in your business? These four signs may provide some clues.


1. You’re Hiring Many New Contractors

Until recently, most companies used part-time and full-time permanent working arrangements. You’d hire an employee and they’d stay with you until you let them go or they quit. If you didn’t need another person working 40 hours a week, you may have hired someone part-time versus full-time, but that was about as much flexibility as you had.

Now, you have a choice of many different options, all designed to give you much more flexibility. Seasonal, temporary, and contract workers have all become much more popular. Today’s business environment demands organizations be nimble, and a contingent workforce helps you navigate this environment more easily.

If you’ve recently started hiring contractors or you’ve hired quite a few of them, you may find you don’t have the resources to manage them properly. In this case, employer of record services could be just what you need.


2. You Don’t Know the Legislation

Are you expanding your operations into Canada?

This situation can quickly become confusing. How well do you know the legislation in Canada? You may be surprised by the number of differences between Quebec and Ontario! Foreign firms have a large challenge ahead of them. The Canadian payroll and taxation system is quite different from that of the US or the UK. Add in the fact that legislation changes between provinces and territories, and you have a recipe for trouble.

Employer of record services help you avoid any trouble with the Canada Revenue Agency. Since the service provider handles everything to do with payroll, you don’t need to worry the CRA is going to come knocking on your door about a tax error you didn’t even know was an error.


3. Your HR Department Is Overwhelmed

Whether it’s because you’ve suddenly expanded your contingent workforce or because you’re operating in many new jurisdictions, you just don’t have the HR personnel to keep up with payroll and taxes any longer. Your people are constantly run off their feet.

What should you do? Hiring is one option, but you’re not sure your budget can take it. Take some of the load off by getting employer of record services. These services are often a more economical solution than hiring more staffers for the HR department. It allows your team to focus on their core tasks, rather than trying to learn Canadian tax legislation and Saskatchewan vacation time rules inside out.


4. You’re Concerned about Compliance

Maybe you’re operating in a new jurisdiction. Maybe you’ve had a tax audit in the past.

Whatever the reason, you want to make sure you’re compliant. Employer of record services make it easy!

If you see these signs in your business, consider employer of record services as a solution. Talk to a provider today and discover how they can help you run your business more effectively and efficiently by taking over the legal management of your employees.


What US Companies Need to Know about Paying Employees in Canada

Topics: Employer of Record

The Complete Guide to Choosing the Right Employer of Record

Posted by Ray Gonder

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Feb 2, 2018 9:00:00 AM

The_Complete_Guide_to_Choosing_the_Right_Employer_of_Record.jpgThe year 2018 is perhaps one of the most opportune times for U.S. and foreign employers to expand their businesses into Canada. Last year, the Canadian economy saw a 3.1 percent increase in growth, and even as its rapid pace has slowed somewhat in 2018, forecasts are still predicting a solid 2.2 percent. Despite such a solid base for U.S. and foreign business prospects to gain a foothold, many businesses hesitate to expand into Canada.

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

The apprehension is understandable, given that registering a business in Canada as a foreign employer can be complicated. There are many tedious steps involved in setting up shop legally in Canada since businesses are regulated differently from province to province (or territory).

If you’re determined to establish grounding for your business, however, chances are you’re looking for an employer of record (EOR). Such an organization can streamline the whole process, and we’re here with a complete guide to help you find the right EOR.


Does the Employer of Record Have Canadian Experts?

The above is the first question you should be asking yourself when you’re surveying your options for an employer of record. One of the biggest mistakes that you need to avoid as a foreign business planning to expand into Canada is being uninformed about the Canadian market.

Many U.S. businesses in particular make this mistake; they assume there are enough similarities between American and Canadian markets that they believe they can manage on their own error-free. This mistake can be a drain on both your business’ time and resources, as there are many potential pitfalls concerning proper establishment of a Canadian administrative presence and infrastructure.

The right EOR will be the one that’s based in the country you wish to expand into. This EOR will have experts on staff who are well-versed in business expansion and payroll compliance. Speaking of which—


Will the EOR Manage Government Accounts?

A proficient EOR should be able to keep up ongoing payroll compliance. Canadian compliance is notorious for its constantly evolving nature. Fines for late or missed remittances are also steep—up to 10 percent for payments over $500 and seven days late. There isn’t much room for error, and your business reputation will rapidly decline if you often underperform in the compliance area.

The right EOR will register and maintain all necessary government accounts, such as those with the Canada Revenue Agency and WSIB.


Can the EOR Meet All Your Employment and Payroll Demands?

Ideally, your business should have all necessary accounts by the time you start employing workers in Canada. The right EOR will make that process a cinch, but it will also ensure your banking and insurance infrastructure is set for timely and compliant payroll. In effect, your EOR should take over all employment matters and ensure compliance.

There’s a lot you need to know about paying employees in Canada. You need to keep up on legislation, make sure T4s, Records of Employment, and paystubs are properly distributed, and see to the admin of your employee benefits and RSP contributions, among other tasks.

High-quality EORs can meet all the demands of running a business in Canada and more. Partnering with the right EOR will allow you to focus on what you excel at: your core business responsibilities.


What US Companies Need to Know about Paying Employees in Canada

Topics: Employer of Record

4 Questions about Employer of Record Services, Answered

Posted by Karen McMullen

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Jan 26, 2018 9:00:00 AM

4_Questions_about_Employer_of_Record_Services_Answered.jpgEmployer of record services, or EOR services, are becoming more and more popular as companies begin to acclimate to the new outsourcing culture. But with every new acronym that’s added to the business vernacular comes many new questions. What exactly are EOR services? What can they do for my company? Is it worth it?

Read on to learn the answers to some of the most common EOR questions.

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


1. What Is an Employer of Record?

An employer of record is a company that businesses partner with to legally manage all employee issues, such as payroll, taxes, benefits, contracts, and paperwork. The EOR is technically the employer to your employees for tax purposes and must handle all work and issues that come along with that title.


2. What Do Employer of Record Services Include?

In a nutshell, EOR services include all employee management processes. This includes taking over the legal responsibility for your workers. International companies often outsource EOR services to ensure that business in a foreign country is conducted in compliance with local policy and legislature.

EOR services also include human resources tasks.  This involves the hiring process; onboarding procedures; staff termination; health and safety training; and more.

One of the most popular reasons companies outsource to EORs and PEOs is payroll. Payroll is often the most vexing of administrative duties, and small business owners especially enjoy the relief of outsourcing the process. This is especially helpful for those international companies as two countries can have vastly different regulations despite cultural similarities, such as Canada and the U.S.

This includes all aspects of paying your workers. EORs will calculate payroll, send out paycheques and pay stubs, and respect local tax policies.


3. Which Types of Businesses Can Benefit from Employer of Record Services?

Different companies benefit from EOR services in different ways. International companies can especially benefit from outsourcing EOR services. This way, out-of-country employees receive their due attention and care while receiving payment according to their country’s legal standards.

Many small business owners use EOR services to take advantage of their payroll expertise. This often allows business owners to focus on core business activity without the headache of calculating payroll regularly.

Start-ups are another type of business that has begun taking advantage of EOR services. Start-up runners are often new to the business world and take advantage of the expertise that comes with EOR services. Also, this way their small staff can be “employed” by an established organization while the founder builds up their own infrastructure.


4. How Will Outsourcing Employer of Record Services Benefit Me?

There are a few key benefits to outsourcing EOR services, some of which have already been touched upon.

First, you save yourself time by freeing up employees from tasks that can be outsourced. They can then use that time to focus on tasks that directly affect your bottom line.

Also, EOR service providers emphasize the importance of safeguarding confidential payroll and HR information. You can be sure that outsourcing these functions will result in greater security.

Most importantly, outsourcing can save you money. When you consider the time, resources, and staff used to stay on top of payroll, HR, and administrative duties, you realize just how much money they are taking from your company.

EOR providers are professionals in these fields and can perform these tasks more efficiently, often costing you less than you already pay. For example, businesses that outsource payroll save an average of 18 percent versus companies that conduct payroll in-house. Not to mention, handling payroll in-house leaves a lot of risk to chance

Outsourcing is always a difficult decision. Especially when you’re talking about the vital tasks that make up employer of record services. However, it’s not a decision to be rushed. Regardless of your decision, you’re already a step ahead of the competition by being informed and knowing what your options are.  


What US Companies Need to Know about Paying Employees in Canada

Topics: Employer of Record

Select the Right Employer of Record with These Do’s and Don’ts

Posted by Stacey Duggan

|

Aug 23, 2017 9:00:00 AM

Select the Right Employer of Record with These Do’s and Don’ts--.jpgOne of the most complicated aspects of expanding overseas is the hiring process. You have business needs to address that don’t always involve your new expansion. As a result, many businesses opt to work with an employer of record service (EOR) to help handle overseas responsibilities, such as hiring, training, taxation, etc.

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

When it comes to choosing which EOR to work with, things can get even more confusing. How do you know which one is best suited for your situation? To help you understand what you should look for, this is a list of do’s and don’ts for finding the perfect employer of record.

What is an EOR?

An employer or record is a service that helps expanding businesses outsource talent, manage health benefits/pensions, and hire full-time team members for a business that’s expanding into a new country. One of the main reasons to work with an EOR is helping businesses manage complicated foreign labour laws they may not be familiar with.

Each country has different laws regarding taxation, benefits, employee over-time hours, or benefits. Working with an EOR reduces the risks associated with expanding into new and unfamiliar territory, and complying with new laws and regulations.

DON’T Forget to Research

There are plenty of EOR services, it would be a mistake not to research exactly what each one offers and what you can expect you will need from them. Have a clear understanding of each company before reaching out to them for a quote. Customer reviews, testimonials, or case studies are a great way to see what quality of work you can expect.

DO Ask Questions

Have questions ready and be prepared to ask them. Before signing off on anything, make sure you’ve asked the questions you need in order to make the right decision.

Is there a customer service team with around-the-clock support? Can you pick and choose which services your company needs? What prices can you expect and how do they differ from the competition? With the right answers you’ll be able to make your decision with ease.

DON’T Overlook Your Business Needs

Choosing an EOR before you understand what your company needs is a mistake. You don’t want to find out down the road that your employer or record doesn’t offer certain services you need, or perhaps they offer too many. Before reaching out, have a deep understanding of exactly what help you need in order to expand your business.

DO Explore Your Options

One of the best ways to make an educated decision regarding your employer of record service is to shop around. Request a quote from multiple companies, compare the services offered, and consider the work experience. By shopping around you can ensure no rock has been left unturned, helping you find the perfect EOR.

DON’T Expand without an EOR

While you might think you can handle it, expanding internationally without an employer of record is a considerable mistake. Expanding on your own leaves a lot to chance.

Do you understand international labour codes, taxation regulations, vacation pay requirements, and health benefits? Did you know some penalties include fines or even jail time? Save yourself the time and reduce the risk—expand with an EOR.

DO Work With an EOR Familiar in Your Country of Expansion

If you’re expanding into Canada, you’ll want to work and EOR who has experience with Canadian regulations. Confirming this detail can be the difference between success and failure. Before you choose an employer of record, ensure they have a great deal of experience within the country you are expanding. Otherwise, you might find yourself starting your search all over again.

7 Signs It's Time to Outsource Payroll

Topics: Employer of Record

What Are the Advantages of Using a Canadian Employer of Record?

Posted by Shannon Dowdall

|

Jul 5, 2017 9:00:00 AM

What Are the Advantages of Using a Canadian Employer of Record---1.jpgTrying to conduct business payroll functions can be extremely stressful, especially if you’re trying to do so from another country. Whether hiring employees or independent contractors, you want to know that your human resources administration tasks are done efficiently and effectively.

If you don’t have enough time on your hands or the knowledge base regarding Canadian payroll regulations to do the job properly, there are options for you. Partnering with a Canadian employer of record can have numerous advantages for your business operations—see for yourself.

Compliance

There are a lot of technicalities companies must abide by if they want to employ workers in Canada. An employee of record ensures compliance with all the Canadian Revenue Agency’s mandated regulations. Professional legal knowledge on your side can protect you from a potential lawsuit or fines down the line. Don’t risk it, go with a Canadian employer of record instead. 

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

It’s Easy

Using a Canadian employer of record lifts all the stress of payroll duties off your shoulders. You won’t have to worry about administrative tasks, and can instead focus your energy on your core business. When you have peace of mind that your Canadian employment operations are running smoothly, you’ll be a happier and more productive individual.

Saves Time

Setting up a business presence in Canada can take a long time—weeks or even months. With a Canadian employer of record, your operations can be up and running almost instantly. From there, your company won’t have to waste any time concerning themselves with how their Canadian employees are being paid and what regulations need to be followed. It saves you time and resources and lets you focus on more important matters.

An employer of record can also help you save time from the tedious recruitment process. You won’t have to worry yourself with sourcing, recruiting, scheduling interviews, or any other time-consuming tasks associated with acquiring new employees. This will all be handled for you by your employer of record. 

Saves Money

A professional employer of record ensures the work they do is exemplary. In such a heavily regulated industry, mistakes can be costly. There will be fewer errors from an employer of record compared to someone from your company who does not understand the current Canadian payroll processes. In the end, hiring a Canadian employer of record will save your company resources and the burden of having to fix any potentially costly mistakes along the way.

Partnering with an employer of record could also be a wise investment for your company. They can help you negotiate benefits rates for your employees from insurance providers. This could end up saving you a significant amount of money depending on the number of employees you plan to hire.

Familiarity

You likely don’t know the Canadian employment marketplace, but an employer of record does. It’s their specialty. Their expertise lies in this very specific function that they can perform exceedingly well. They have knowledge surrounding the current forms that need to be filled out, what taxes need to be paid, and much more. Their familiarity with the subject ensures that you’re trusting your payroll services to a company that is going to benefit your business.

Less Room for Error

Practice makes perfect. With an experienced Canadian employer of record acting on your behalf, you have the knowledge and expertise on your side that would take years to develop on your own. The understanding of Canadian payroll regulations and best practices means that a professional employer of record won’t make any mistakes when it comes to your payroll duties.

There is no room for mistakes with an employer of record. You can be assured that when you trust your services to the professionals, you’re getting a perfect product every time.

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

Topics: Employer of Record

How Employer of Record Services in Canada Can Help Your Company Expand

Posted by Ray Gonder

|

Jun 28, 2017 9:00:00 AM

How Employer of Record Services in Canada Can Help Your Company Expand--.jpgIs your company growing at a rapid pace? Are you expanding into new and unfamiliar Canadian territories? If your company is growing so fast that you just can’t keep up with payroll regulations, don’t worry, there’s an easy solution so you don’t make any common mistakes—hiring an employer of record.

What’s an employer of record? These unique and innovate companies can help get your HR and payroll administration back on track. With an employer of record acting on your behalf, you won’t need to set up a physical presence for your company in Canada, even if there’s work here for you. Everything will be covered by employer of record services in Canada. Take a look at how they can specifically help your company expand.

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

Meet Deadlines  

Aside from paying your employees on time payroll tax remittances have a very strict deadline which cannot be missed. The Canadian Revenue Agency (CRA) must receive your payroll remittance before the 15th day of the month after you made deductions.

While you may not know all the important dates to remember when it comes to your payroll, an employer of record would. An employer of record can help keep your business payroll functions organized so that your company is not penalized for missing any important due dates.  

When you comply with government regulated deadlines, your company will be able to expand more rapidly, as you won’t have to waste time fixing Canadian payroll tax errors. You’ll be able to commit more of your time to your core business and expansion.

Properly Classify Your Employees

The CRA has recently cracked down on companies misclassifying their employees. Because employers do not have to pay income taxes, employment insurance (EI), Canadian Pension Plan (CPP), or benefits for independent contractors, many companies have tried to cheat the system.

Businesses classifying their employees and independent contractors improperly are subject to a fine, or even jail time. Knowing the differences between employees and independent contractors for tax purposes could ultimately save you down the line from a potentially catastrophic lawsuit.

If misclassification just isn’t a risk you’re willing to take, employer of record services in Canada can help make sure your employees are correctly classified every time. As experts in this area, they will be able to correctly identify which category your employees and independent contractors fall into, saving you from some serious future trouble. You’ll be able to bring more employees on board without having to worry about misclassification.

Perform All HR Administration Duties

As the owner of a company, you have a ton on your plate. Adding the hiring and firing component of a business can be too much work. With employer of record services in Canada, you’ll be able to hand over your HR administrative duties and rest assured that your company’s hiring process is in good hands.

You’ll be able to hire new employees quicker and more efficiently, with a dedicated team sourcing, recruiting, interviewing, hiring, and letting-go employees, acting on your behalf.

Save You Time and Money

Expanding into a new country can be a costly endeavor. The last thing you want is to waste copious amounts of time and money into your new expansion. Employer of record services in Canada can help companies save, by lifting the weight of taxing administrative and payroll duties off your company’s shoulders.

You would be required to dedicate a significant amount time and energy into developing the expertise surrounding Canadian payroll law that an employer of record, like The Payroll Edge, would already possess. A lack of knowledge and understanding could lead to mistakes. These mistakes could be costly to fix, and would take your attention away from the more important aspects of your business.

Instead of wasting your time and money trust your payroll and HR administration to a Canadian employer of record.

What US Companies Need to Know about Paying Employees in Canada

Topics: Employer of Record

5 Ways an Employer of Record Can Contribute to Business Growth

Posted by Stacey Duggan

|

Jun 19, 2017 9:00:00 AM

5 Ways an Employer of Record Can Contribute to Business Growth--.jpgBusinesses are always looking for ways to expand their business, through work practices, company brand, and increasing the number of staff employed. With expansion comes a number of other burdens, particularly in the administrative field. These very quickly take up time alongside growth of the business itself.

There’s a solution that makes it easy. An employer of record (EOR) can help with business growth in five different ways. Keep reading to learn how.

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

1. Long-Term Savings

An employer of record handles a wide variety of issues and matters for a cost that’s less expensive than it is to manage in-house. As EORs help many clients, businesses are essentially sharing these resources through the EOR, generating savings from software updates, HR training, and time dedicated to understand workforce compliance.

Hiring new employees, for example, is a good sign, but with it comes more paperwork and additional time to manage them. It means legal and regulatory changes, ongoing training regarding HR, adding to payroll, and other employee training regarding health and safety, workplace management.

Ensuring HR and payroll is in line with government standards is a time-consuming that takes time away from core tasks. EORs stay on top of these duties, allowing employers to use that time growing their business.

2. Added Value to Hiring and Staff Management

A growing business includes an increase to the number of staff employed. As a co-employer, an employer of record will hire and manage staff on behalf of the company. For businesses venturing into new markets, EORs understand the process in place to ensure correct hiring.

They’ll handle the interview process and training, to guarantee new hires meet the specific qualities sought by employers. Providing EORs this kind of pre-determined outline ensures the best fit and staff for a company to continue to grow with the necessary support and resources.

3. Avoid Mistakes

Mistakes have serious consequences with the Canada Revenue Agency, other government bodies, and generally cause an overall headache for businesses. An EOR makes sure a business’ payroll and deductions are error-free to avoid fines, penalties, and lawsuits.

With an EOR handling payroll, compliance, and related matters, they’ll ensure employees are classified as they should be, the business is in line with provincial and federal workplace standards, and all other necessary requirements are met. This keeps businesses on the government’s good side, and employees happy.

4. They Provide the Right Tools

Software eases business growth and expansion. It’s also expensive and requires constant updates. Working with an EOR means there’s no need to worry about forgetting to update software or searching for the right kind because they maintain the different platforms in order to do their job effectively.

EORs are experts trained in HR and payroll to make implementing easy as businesses grow. They have knowledgeable associates and offer additional perks, such as group benefits and discount insurance rates, which employers–particularly for small businesses, don’t always have access to alone. EORs provide support to deal with all kinds of situations and answers to any questions there might be.

Whether it’s a company with a small client base and limited staff, or a bigger company entering new territory, EORs cover many aspects so businesses don’t have to worry about remembering to keep up with software or ensuring access to appropriate benefits.

5. Peripherals Managed

With the time-consuming and tedious tasks covered, businesses can get back to focusing on strategy, marketing, and overall growth. It’s hard to manage core tasks when administrative tasks are taking up a significant part of the day.

Tax, payroll, labour, and employment are covered by professionals with the knowledge and time to research and understand these matters. When employees stay focused on core tasks and an employer of record handles the rest, businesses can ensure the best competencies are in place for business practice and expansion.

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

Topics: Employer of Record

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