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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.

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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.


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. 

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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.


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.

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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


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.


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


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


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


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


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


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

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