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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

Payroll Services for Canada: What Are My Options?

Posted by Karen McMullen

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May 19, 2017 9:00:00 AM

Payroll-Services-for-Canada-What-Are-My-Options.jpgHandling your payroll department can be done in many ways. Knowing what you need will help you find the best solution for your business,whether you only require a company to manage immediate payroll tasks or need one to handle HR duties on top. 

From payroll service providers to co-employment deals, there’s a number of options available regarding payroll services for Canada.

DIY or Outsourcing

You can calculate payroll inhouse. The Canada Revenue Agency provides links to software and a payroll deduction calculator for small businesses to work with. The right payroll service software allows you to handle payroll on your own inhouse.However, it’s still up to you to deal with the department—keeping track of correct deductions and pay periods, filing taxes on time, and ensuring compliance. 

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

Great payroll serviceproviders simplify your business operations by taking care of the payroll tasks. Once you’ve provided the pay information, they’ll generate pay and reports, so all you need to do is approve them. A basic payroll service will calculate payroll and fringe benefits, provide management reports, arrange for cheques or direct deposit, and pay employees on time as per your company’s standards. 

Some offer a tie-in with human resources, should you need that position filled as well. The perfect payroll service for you should be dependable and ease you from the pressure of calculating correctly. A payroll service is a comfort in case you are less familiar with the process and laws involved. 

Payroll services for Canada establish relationships between the service and your business—you should be able to reach them when you need to. They should have anexcellent customer service reputation, with strong communication between both parties. 

In addition, you want to make sure their fees are transparent. When choosing a provider, clarify ahead if it’s a flat monthly rate or a different subscription-based model. Monthly invoices should indicate all fees previously discussed. 

Payroll services offer more than just payroll: They can include access to web portals, automated phone services, and various software features that ease the entire process, such as generating paystubs or providing options for self-serve benefit enrolment. Payroll services offer different packages based on your business’needs. 

The right payroll service handles the core tasks of payroll with the tools to do it correctly. With so many payroll services available, you can find a firm that best suits your needs.

EORs

Another option is seeking the help of an employer of record (EOR). These companies handle the payroll tasks. They also go one step further to also ensure compliance in your payroll and paperwork. EORs allow Canadian businesses to outsource their administrative tasks, such as payroll, taxes, and HR services. They’ll ensure your business remains compliant on top of punching in the right numbers. 

You still have complete control over your business, while the EORmanages the peripheral tasks. The EOR is a popular option as itallows you to focus on your business efforts rather than on administrative tasks. 

EORs offer additional benefits depending on the package you choose. It could include workers’ compensation, employee health coverage, and more. While you retain full control, an EOR acts as a co-employer to handle administrative business tasks. EORs are up to date with employment standards to help businesses with employee support, providing both the benefit of a payroll service provider and an employer organization.

When choosing a service, do your research and determine the option that best meets your needs. Get references from clients who use these services. A good provider will have no problem referring you to their clients to ask questionsand gauge success. The right payroll services for Canadawill significantly improve your business.

What US Companies Need to Know about Paying Employees in Canada

Topics: Employer of Record

What Is a Canadian Employer of Record?

Posted by Shannon Dowdall

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May 17, 2017 9:00:00 AM

What-Is-a-Canadian-Employer-of-Record-.jpgSometimes you need an extra hand. For business owners, there’s a number of options available to relieve some of the pressure of running a company. If you haven’t considered it before,a common choice is to enlist the services of a Canadian employer ofrecord, or EOR, to handle administrative responsibilities. Whether you’re expanding into Canada, or growing in a new territory within the country, EORs are here to help. 

An EOR is a legal employer that assists with the organizational legwork involved in a business. This business solution takes over the company’s peripheral duties, allowing business owners to put their concentration into makingtheir businesses grow.

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

Administrative Issues for Expansion

As a business owner, you know all too well the headache and time spent that comes with registering your business and filling out all of the paperwork.When you expand into a new territory, this has to be done all over again. 

As a Canadian employerof record has already established an administrative presence in the territory, it’ll make registration a breeze. From maintaining accounts with the proper government bodies to setting up insurance infrastructure, it already has the tedious work covered so you can ensure your business is properly initiated.It will help you obtain a business number, establish banking infrastructure, and take care of all the steps you need to expedite operations. 

It can be a challenge to know the laws surrounding registration and overwhelming to be sure you tick off the right boxes. As EORs are well-established with the legality and culture of this area, they have a strong grasp on those initial stagesto ensure you can open up forbusiness. 

Their expertise means less paperwork and stress for you, and with the administration hurdles covered, you’re ready for business in anew market.

Ensure Companies Comply

It’s no secret compliance is complicated for most people outside of the legal field.Evenwith a grip on the regulations your company currently has to abide by,regulations undergo revisions. Opening a new business or expanding into a new marketbrings a whole new set of rules to follow. 

Canadian employers of record stay on top of new laws and amended legislation to ensure accuracy. They provide assurance that your business complies with the correct labour, health and safety, and employment laws in the specific territory. It’s confusing and stressful to make sure compliance is correctly handled.But with an EOR, you can rest assured that it is. The company will guarantee your employment contracts are in line with provincial standards, help with independent contractors, and help with other HR-related issues. 

With so many regional and federal laws to adhere to, these companies are fluent in Canadian legislation, so you can focus on your business without getting lost in legislative details. Whether you’re just starting out, or moving into a new territory, EORs will make sure you’re meeting the right local, provincial, and federal laws to continue operating error-free.

Tackling Payroll

From the payroll process to the rules governing its administration, EORs oversee all the challenges enclosed.Payroll encompasses many duties: correct calculations, correct classification, payroll tax deductions and remittances, holiday pay, and more—it’s not as easy as just tallying hours.

Payroll processing itself is time consuming. When an EOR calculates wages, you have more time for your core responsibilities, and the headache of paying employees is handled by professionals who ensure it’s calculated properly. On top of this, you also have to follow rules regarding the correct provincial wage rate and ensure your employees are paid within the minimum periods stipulated.

An EOR will ensure you meet these requirements, saving you from penalties or lawsuits. They’ll maintain the correct payroll accounts, adhere to remittance schedules, and avoid miscalculations to keep you in good standing with the Canada Revenue Agency. A Canadian employer of record’s expert capabilities will keep payroll, compliance,and related tasks free from error.

What US Companies Need to Know about Paying Employees in Canada

Topics: Employer of Record

Use an Employer of Record for Payroll and Watch Efficiency Soar

Posted by Ray Gonder

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Apr 28, 2017 9:00:00 AM

Use-an-Employer-of-Record-for-Payroll-and-Watch-Efficiency-Soar.jpgBusinesses have a number of avenues to explore to help improve productivity, efficiency, and overall practices. One such option is an employer of record for payroll. When you employ one tailored to meet yourbusinesses’ needs, you’ll discover more time on your hands to build brand, improve strategy, and expand business.

What’s An EOR?

Short for“employer of record,” an EOR is a company that acts as a co-employer on behalf of your business. Think of them as a middleman who manages your employees and all of the administrative duties accompanied with them. 

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

Their partnership helps in a number of ways. As they are already a registered business, they can get right to the hiring and operations aspects of the companies who employ their services. As a business owner partnering with one, you still retain full control, but they take care of your bureaucratic tasks, from obtaining a business registration number to establishing insurance and banking infrastructure. 

An employer of record has the means and resources to make payroll easy for you. When it comes to outsourcing thisdepartment, they have the time, knowledge, and people to manage these tasks and relieve you of these responsibilities.

What Payroll Matters Do They Handle?

All of them! As they act as the employer for your employees, an employer of record for payroll handlesevery payroll task, leaving you more time to focus on your business, without also worrying aboutmiscalculating pay and taxes. 

Their expertise in payroll means they fully understand how to classify employees, calculate wages and other non-salary monies correctly, and ensure staff is paid on time. They know everything about pay: wages in applicable territories, statutory and holiday pay, overtime, etc. 

When it comes time to do those pesky tax deductions, they know how to calculate the right source deductions and when to file remittance reports. An employer of record for payroll manages it all, freeing up time in-house to work on company growth and strategy. You won’t have to worry about in-house staff lacking the right skills, or dedicating team members to these tasks, when it’s outsourced to experts. 

As human resources is closely tied to the payroll department, an EOR is an able-bodied partner here. They can negotiate better insurance deals using their group-buying power, offering your employees better benefit package rates in medical, dental, and optical care. They handle the paperwork involved with hiring, such as drafting employment agreements, so you can hire new employees faster and with less hassle.

How Can They Make Payroll Efficient?

An employer of record for payroll is guaranteed to have the latest payroll software, and continually update it, improving your overall payroll process. They’re set with the right tax tables, technology, and reporting tools, so all you need to do is provide the correct employee pay information.

With an employer of record for payroll, you can rest easy knowing every i is dotted and every tcrossed. Federal, provincial–even municipallaws, are regularly monitored to ensure the business is in line with current standards, and new ones are implemented upon issuing. When you miss a deadline or don’t follow the correct legislation, your business could face penaltiesand fines from the government. An EOR’s job is to stay on top of regulations, keeping your business in good standing with health and safety, labour, and employment standards.

With professionals handling the admin duties, you’ll have peace of mind knowing everything is properly managed, giving you more time todevelop your company. With an EORproviding a trifecta of services: legal, payroll, and human resources are rolled into one,you’ve eliminated the use of staff for this in-house. An employer of record for payroll opens up spacein the budget,and addstime to the clock for businesses to achieve success.

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

Topics: Employer of Record

How a Payroll Company is Different from an EOR Service

Posted by Ray Gonder

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Apr 7, 2017 9:00:00 AM

How-a-Payroll-Company-is-Different-from-an-EOR-Service.jpgThere’s plenty of options for companies looking to outsource some of their back-end functions and administrative tasks. But no two companies are the same, and before you hire the first hit on Google, it’s important to research ahead of time to ensure you hire the right company–one that fulfills your business’specific needs. 

Knowing how a payroll company is different from an EOR service will help your business make the best partnering decision.

 

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

Job Description

A payroll company focuses on payroll tasks specifically. It’s a much narrower construction. Their solutionis to give businesses the tools necessary to calculate accurate payroll. Payroll companies process the payroll information given to them, but it’s up to the business itself to ensure they’re complying with legal regulations and tax standards. Payroll companies remove the burden of administering payroll and running reports by providing the right technology–something many small and medium-sized businesses can’t afford to do in-house. 

In contrast, an employer of record, or EOR service, takes the extra step. On top of handling the organization’s payroll, they also ensure the business is meeting the current tax and employment standards. They’ll also look into business registration and expansion for companies moving into a new territory. EORs will fill out the paperwork and save time by taking care of the non-revenue generating tasks. 

An EOR offers a co-employment deal. These organizations assist with hiring, retaining, and paying employees. They work with the business to manage its peripheral tasks: human resources, expansion, legal compliance, and payroll. With market knowledge and expertise in payroll compliance, they’ll ensure your business is following all necessary regulations to a T.

Reliability and Legal Responsibilities

A payroll company’s main duty is providing the software and tools for calculating payroll correctly, versus ensuring the company is in line and compliant with the correct tax law. An EOR service provides a team of experts who know the provincial and federal tax laws to properly handle remittance reports and wage calculation. 

An EOR also offers services in human resources and are up-to-date with the current employment standards to help businesses with employee negotiations and general support issues. While a payroll company stops and starts with the tools needed, an EOR takes those tools and assumesthe responsibility of meeting each rule. 

Payroll companies handle the basic functions associated–paperwork, administering and printing cheques, running remittance reports. While they still cover time-consuming processes, EOR services will ensure these tasks meet the necessary legal obligations.

Perks and Benefits

A payroll company offers the benefit of saving businesses time and headache from calculating payroll. An EOR service can offer employee benefits and packages in addition to this.

These extra services are generally not a part of the payroll provider’s task. EORs though, offer additional compensation, such as administering RSPs, employee healthcare benefits, dealing with workers’ compensation, and related perks. Payroll providers achieve easy set-up and quick solutions–providing benefits require more time and work. As such, it’s not a service payroll companies provide. An EOR is tailored to meet the specific needs of the business, which caninclude adding extras services on top of providing the best payroll solution.

The easiest way of differentiating a payroll company from an EOR service is that payroll providers focus more on easing payroll duties specifically. Their tasks are related purely to payroll without any extras. An EOR service provides the extras: On top of handling payroll, they ensure the business complies with the correct legislation, they can manage the HR department, and they act as a co-employer to handle administrative business issues with ease.

7 Signs It's Time to Outsource Payroll

Topics: Employer of Record

Why Your Business Should Partner with an Employer of Record

Posted by Stacey Duggan

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Dec 19, 2016 9:00:00 AM

Why-Your-Business-Should-Partner-with-an-Employer-of-Record.jpgAn employer of record (EOR) not only provides solutions for human resources management, payroll administration, compliance management, and back office support, but it also assumes all administrative and legal responsibility for these tasks. While you continue to maintain control and care of your workers, the EOR will be their legal employer. Here are some of the many benefits of partnering with an employer of record.

Easily Establish a Canadian Administrative Presence

One of the most difficult aspects of expanding operations into Canada is the bureaucracy surrounding establishing a legal presence in the country. You must register with the required Canadian authorities, both federally and provincially. You must maintain accounts. You must set up infrastructure for banking and insurance. 

All of these steps can take considerable time; you may need to jump through hoops. But with an employer of record as your partner, all of the steps are eliminated. The EOR will already have the presence required for you to start hiring and paying Canadian workers with ease.

Complying with Employment Laws

Do you know what it takes to make your workplace compliant with health and safety laws? Do you know how many vacation days you must offer? Do you know how to administer benefits? Do you know the minimum wage, overtime rules, and meal break requirements where your employees are working? Do you understand the privacy laws and anti-discrimination rights of the country and province you’re working in? 

Canadian labour laws and vast and stringent. You cannot follow US laws to manage your Canadian workers. You must follow the employment standards of the country and the province or territory that the work is being performed in.

You have to ensure that you properly classify your employees, follow health and safety laws, follow insurance regulations, comply with employment standards, and much more. When you’re busy handling your expansion efforts and day-to-day operations, you simply don’t have the time required to learn all Canadian legislature related to your business and assure that they’re being followed. And you don’t have to when you have an EOR on your side. The EOR will ensure compliance for you.

Payroll Administration

Arguably the most complex function your organization will need to handle in Canada is processing payroll. You’ll need to understand the different tax rates, the rules, maximums, and exclusions for CPP and EI deduction, the varying deadlines for remittances, the paperwork that must be filed, and much more. Tax errors are common and result in big penalties. What’s more, tax regulations change regularly and it can be difficult to stay abreast of current laws.

Not only is payroll processing complex, but it’s also costly and time consuming. Instead of handling this business function in house, you can outsource it to your employer of record. Your employees will always be paid correctly and on time and you’ll always be compliant.

Mitigate Risks

As a business owner, all business responsibilities are ultimately on your shoulders. Even if you employ dedicated human resources professionals, payroll administrators, and compliance experts, if they make errors, you are the one who must face the consequences, including fines, penalties, and possibly jail time.

If your team members are US-based, then the chances of them making errors with Canadian payroll, HR, and compliance are high. Is it worth the risk? You can shift the burden of responsibility to an employer of record. The EOR will become your Canadian employees’ employer by law, which will mitigate risks.

An employer of record will no doubt make your expansion efforts easier. It will also make managing your workforce stress free, so you can focus on your other business responsibilities.

7 Signs It's Time to Outsource Payroll

Topics: Employer of Record

The Definitive Guide to Employer of Record Services

Posted by Corinne Camara

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Dec 12, 2016 9:00:00 AM

The-Definitive-Guide-to-Employer-of-Record-Services.jpgAre you looking to expand your U.S. business into Canada? The North American marketplace has great opportunities for success, but expanding into the Canadian marketplace can be tricky.  Businesses may have problems registering their company and getting a whole team of new staff to manage a new location. 

Enter your employer of record.

What Is an Employer of Record?

Companies can useemployer of record services to take care of all the tax and employment standards necessary when registering a business in a new country.All countries have different rules and regulations that need to be followed. With your approval, an employer of record will hire and pay the new employees and will be there to take control and ensure a smooth transition into that country. 

Many companies have difficulty converting properly and often make mistakes. Dealing with the different ways Canada and the U.S. operate is a common factor that deters American companies from expanding into Canada. Expanding your business can lead to challenges, but an EOR can help your business avoid costly mistakes and establish a presence and structure in Canada.

Managing Your Employees

Employer of record services will manage your Canadian employees and make sure their health, safety, payment, and paperwork fall under Canadian business regulations. Canadian federal and provincial requirements cause many companies to fear expanding. Failing to properly file paperwork can lead to serious risks. An EOR eliminates that risk since you’re working with professionals directly in the Canadian market. 

An EOR will also take into account any tax fluctuations that occur within the business and maintain wage statements. Canadian employees are required to have a minimum wage of $10.50- $13.00 an hour, by law. Wage statements will calculate the amount of hours worked as well as vacation time, retirement savings plans, or any other insurance plans included, such as maternity leave. 

All of these employee benefits involve rigorous paperwork. Employer of record services will have access to paystubs and invoices in order to review, improve, and approve professional business standards. The Canada Revenue Agency (CRA) can be complicated and labour intensive for business owners. Having an organization deal with these difficulties allows business owners to focus on further developing and creating more profit for their company.

Navigating New Marketplace

When businesses hire an EOR, they are given a professional edge in their new marketplace. Owners can leverage their expertise to produce inspiring environments for their employees to work in. Having an international business can allow employees to expand their own knowledge base and want to learn every aspect of the business. Individuals in a company are more likely to maintain workplace happiness if they feel fulfilled. Having benefits and an organized working structure can positively affect everyone in a company, from owners to employees.

Employer of record services will take care of all the little details surrounding your new employees and their payroll requirements. They’ll calculate taxation requirements for the federal and provincial governments. And they’ll be there to understand the system and provide the support needed for your business to grow and succeed.

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

Topics: Employer of Record

5 Services Your Employer of Record Should Provide

Posted by Karen McMullen

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Dec 9, 2016 9:00:00 AM

5-Services-Your-Employer-of-Record-Should-Provide.jpgExpanding your business internationally can be stressful. Most business owners have no clue where to start or register. 

An employer of record (EOR) can help companies register their workforce into the Canadian marketplace. What services do they provide that make them stand out? Here are five services that your employer of record should be able to provide you as you enter the new industry.

 

1. Hiring Employees and Managing Employees

A business entering into a marketplace needs brand new staff to run it. An employer of record is able to hire new employees on behalf of the company. Having an EOR hire and manage staff is a huge benefit for busy business owners who are trying to understand the marketplace in a new country. 

Your EOR will go through the interview and training process based off of specific qualities that you’re looking for. Having pre-determined criteria allows your EOR the ability to hire the right people to launch the new business venture. They’ll help you build your international team and will also provide help and support resources.

2. Familiarity with Canadian Payroll

Your employer of record should have a proficient and professional knowledge of Canadian payroll requirements. Once employees have been hired,then your EOR should pay the employees based off of minimum wages requirements (variations of wages may apply depending on type of job and age). Vacation time and total hours worked need to be constantly calculated, while still maintaining Canadian employment standards. Your EOR will provide you with a payroll service and distribute funds and invoices to your employees.

3. In-depth Knowledge of Insurance Policies and Paperwork

You’re hiring the employer of record in order to maintain the structure of your business while still adhering to the rules and regulations of the country. In Canada, the federal and provincial government have different requirements. An EOR would recognize what needs to be done for your company in terms of insurance policies for employees and the business. 

The paperwork for any business can be a demanding process, which is why you need to make sure your EOR provides paperwork support.

4. Proficiency with Canadian Taxes

Employees from a different country have an entirely separate set of tax laws. They can be very complicated due to the governing system. An EOR will be able to deal with the varying tax rates and deductions along with tax remittances. The industry is bound to fluctuate and you need an organization that has the skills to calculate provincial, territorial, and federal taxes, while being current and efficient with the employees’ wage statements. All wage statements should have total hours worked, gross and net wages, and any deductions based on insurance plans or benefits. Your EOR should take full responsibility over your taxes for that specific country.

5. Providing Support

Your employer of record should be available for any support you may need during the expansion process. A new country is unknown territory, so working with an EOR reduces the risk of making any mistakes while still being able to grow your business. You want a partner that will add to your success, so it’s important to verify all services that an organization provides. Get an employer of record that’s the right fit for you so your transition into the country is as smooth as possible.

What US Companies Need to Know about Paying Employees in Canada

Topics: Employer of Record

5 Reasons to Partner with an Employer of Record

Posted by Corinne Camara

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Dec 5, 2016 9:00:00 AM

5-Reasons-to-Partner-with-an-Employer-of-Record.jpgBusinesses need to make the most of their resources, and using up staff energy on payroll intricacies is one way to run down your employees while focusing on the minutiae of the business world. 

An employer of record (EOR) is a payroll solutions provider that can help your business stay on top of payroll and other back office details. There are many benefits to using an employer of record—here are just five reasons for your business to partner with an EOR.

1. Make the Most of Your Resources

Business owners who operate under a tight budget know how hard it can be to make the most of your staff without overworking them. Especially for small and medium-sized businesses, employers often have to pinch every penny in order to keep things running smoothly. This model might work in theory, but when something offsets an employee’s ability to run at constant peak efficiency, you can have a big mess on your hands. 

Luckily, an employer of record offers services at a cost-efficient rate, so you can outsource your work without the hassle. Your business can focus on the work you’re meant to do while letting the payroll expert handle the behind-the-scenes.

2. Extra Value

Employers who hire a full-time payroll staff have to make sure that their staff can match the dedication of their current employees—often, it’s most efficient to let the experts handle benefits packages and other back office dealings. 

With an employer of record, you don’t only get a true partner that understands what information is being processed; you also have HR and payroll expertise that you can make the most of without overworking your full-time staff.

3. Avoid Expensive Mistakes

One of the biggest mistakes a business owner can make is failing to abide by the rules of regulatory agencies, which can put your business on the government’s bad side. Employee misclassification, for example, happens when employers fail to accurately distinguish between an employer and an independent contractor, which can result in expensive lawsuits for business owners. 

With an EOR, you can stay on the good side of regulatory bodies and make sure your payroll and tax documents are error-free. Even better is the liability that comes with an EOR. Compared to other payroll services that may just offer software and support, an EOR is a true partner that puts their knowledgeable staff to work on your documents.

4. Payroll Expertise

Most business owners prefer not to worry about payroll. Payroll accuracy takes a lot of care and attention to detail, and for many business professionals, there are plenty of better ways to spend time and money. The good news is that there are some small ways you can improve payroll efficiency like getting your employees involved, partially outsourcing your payroll, and hiring an employer of record. 

When businesses take on an EOR, they benefit from payroll expertise and efficiency. Without the financial and operational worries associated with handling payroll, business owners can focus their energy on growth and building better business relationships.

5. Give Yourself a Competitive Edge

American companies looking to cross the border to make the most of Canadian talent can find it difficult to stay up to date with terms and legalities to make the most of the cross-border business exchange. With an employer of record, you don’t have to deal with the variances in US and Canadian systems because the EOR takes care of those tasks for you.

Your company will maintain care and control of your workforce while the EOR takes on the responsibility for taxation in addition to employment standards like health and safety regulations according to provincial and federal regulations.

What US Companies Need to Know about Paying Employees in Canada

Topics: Employer of Record

Overcome Challenges by Using Employer of Record Services

Posted by Anna Mastrandrea

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Dec 2, 2016 9:00:00 AM

Overcome-Challenges-by-Using-Employer-of-Record-Services.jpgThere are many different methods for American companies to manage Canadian employees. Businesses that look to expand their operations across the border or who look North for uniquely skilled candidates have to comply with Canadian regulations in order to stay running. Businesses can manage the Canadian employees independently, partially outsource their payroll needs, or turn to an employer of record service to handle the HR work. 

Making sure your transition across the Canadian border goes as smoothly as possible is just one way employer of record services can help your business. Small to medium-sized businesses especially face a host of challenges every day. With an employer of record, you can put the HR work in the hands of the professionals. Both back office solutions producers and employer of record services have HR specialists and legal experts available to help overcome simple to complex challenges—here’s how.

Employee Misclassification

Does your business know the difference between an independent contractor and an employee? When employers hire independent contractors, there are fewer steps involved as there are in hiring an employee, and taking on contractors usually ends up saving businesses money. There are many benefits to hiring independent contractors including saving on pension and benefits, cost and tax savings, and extra flexibility. That being said, companies can’t afford to misclassify their employees. One mistake in employee miscalculation can end up costing business owners a pretty penny and can even result in ugly legal battles.

Issues Regarding Wages and Payroll

Employers know that payroll can take up a lot of time and energy to make sure it’s done right.After all, being paid accurately and on time is a guarantee at any establishment, and when employees have issues with their pay, it can create a very negative work environment. Not all businesses have the available staff to afford in-house payroll experts, and when you have a team all working on the same task, you increase your chances or errors and inconsistencies. 

No employer wants to intentionally fail to comply with Canada Revenue Agency (CRA) rules, but sometimes deadlines and employee specifics can get muddled. When you make mistakes, they end up costing your business more than the time it takes to make corrections because you might even have to pay some hefty fines to the government. 

Employer of record services can help your business overcome challenges regarding wages and payroll. Because EOR services are staffed by professionals who know everything you need to know when it comes to taxes, deductions, and more, you don’t have to worry about mistakes coming back to bite you. Even better, EOR agreements mean the service provider assumes responsibility for the accuracy of your results, so when regulations and guidelines change, you can bet your EOR service provider is up to date with all the newest rules and regulations.

Resources

For small and medium-sized businesses in particular, your resources are limited. With a small staff and a small client base, your business has to make the most of what it’s got, and tiring your employees by overworking them isn’t good for business. Happy employees are productive employees, so to make sure your resources are working as best as possible for you, your business can turn to employer of record services to save both time and money.

With proven EOR professionals as part of your team, you can make the most out of the current aspects of your payroll. Furthermore, EOR professionals often gain an edge over one another by offering extra services, so it’s possible to find an employer of record service provider that can handle other aspects of your business so your staff can focus on doing what they do best.

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

Topics: Employer of Record

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