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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

The Difference between an Employer of Record and a Payroll Company

Posted by Shannon Dowdall

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Nov 23, 2016 9:00:00 AM

The-Difference-between-an-Employer-of-Record-and-a-Payroll-Company.jpgFor business owners looking to easily simplify the payroll process, turning to a professional employer organization (otherwise known as an Employer of Record in Canada) can offer a wide array of valuable services. An employer of record (EOR) is a firm dedicated to helping your business handle with the hiring, retaining, and paying of employees. 

Payroll companies offer similar services, but usually focus on software solutions that give businesses the tools to apply towards payroll solutions. There are a few differences between an EOR and a payroll company, including purpose, benefits, dedication, and liability. Read on below to find out more about how these two services differ from one another.

Purpose

An EOR can help a staffing agency by filling out all of the arduous paperwork, helping business owners save time and hassle that would otherwise interfere with their revenue-generating business responsibilities. In addition to negotiating better pay rates with potential workers, an EOR will keep you on top of all payroll-related tasks, allowing you to focus more energy towards your company vision. EORs come with expertise and vast knowledge of the market in addition to the expertise that comes with legally compliant payroll services.

Benefits

When your business partners with an employer of record, you can free up time and effectively outsource necessary human resource functions, employee benefits, payroll, compliance issues, and workers’ compensation. Companies that outsource these functions save money that can then be put towards business expansion, to steadying employee salaries, or to a variety of other uses. 

The employer of record seeks to onboard quality talent quickly so that their clients can achieve their business goals and stay competitive. A payroll company understands that excellent service and peace of mind are valuable to businesses, so they specialize in easy set-up and quick solutions. Working with an EOR, however, gives you the flexibility to vocalize your company’s specific needs and work with another company to find the best payroll solutions.

Dedication

A payroll company can help business owners by providing help and support resources, but it will not assign a dedicated account specialist. Payroll companies can benefit organizations looking for support and software to make payroll duties easier, but when it comes to having a personal touch to your payroll support, an EOR can help your business avoid arduous HR and payroll duties.

Payroll companies, especially big ones, have a variety of services that can help your business with payroll duties. Business needs vary depending on the company, and not every enterprise has the same needs when it comes to payroll relief. When you work with an employer of record, you get relevant expertise applied specifically to improving payroll efficiency. Not only do you benefit from the peace of mind, but you also get a true partner that understands what is being processed and ensures accuracy every step of the way.

Liability

An EOR will hire employees on behalf of business owners, but never without direction. When you partner with an EOR you maintain authority over your company’s hiring decisions, but with the help of a skilled expert to take care of the paperwork and legalities. One of the main differences between an employer of record and a payroll company comes down to liability and responsibility. While payroll companies give your business the tools to make paying employees easier, only an EOR will take on the brunt of the legal responsibility. 

An employer of record will make sure all paperwork is filled correctly and all international employment decisions correspond with government regulations, giving you true peace of mind. The EOR will also help your business avoid any potential errors that might happen as you grow your business.

7 Signs It's Time to Outsource Payroll

Topics: Employer of Record

3 Ways Your Company Can Benefit from Employer of Record Services

Posted by Shannon Dowdall

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Nov 9, 2016 9:00:00 AM

3-Ways-Your-Company-Can-Benefit-from-Employer-of-Record-Services.jpgEmployer of record services are like a well-kept secret. You may not have heard of them, but once you collaborate with one, you’ll wonder how you ever did business without it. They eliminate the need for traditional payroll and human resources departments, offering similar service at reduced rates. In a business environment where every minute and resource is valuable, acquiring employer of record services can make the difference between frustrating inefficiency and a happy, satisfied workforce. 

Essentially, employer of record services handle your company’s payroll to ensure your staff receives the right amount of pay at the right time. While this may sound simple, anyone who’s ever had to deal with complex deductions and annoying regulations will know that these tasks are easier said than done. In addition to this tedious and onerous work, EORs often assume hiring responsibilities for your company, giving you greater freedom and privileges. 

You won’t truly understand everything that EORs have to offer until you’ve learned about the details of these fascinating organizations. This article will outline just a few facts that will show you why these firms are essential to many modern businesses. From there, you’ll be able to make your own decisions about whether an EOR is right for your company.

1. An EOR Can Help You Make the Most of Resources

If you run a small or medium-sized business, you know how it feels to operate under a tight budget. You have to pinch every penny to keep your organization afloat, and this means that everyone has to operate at peak efficiency almost constantly. This can put a tremendous strain on everyone in your organization, but you still have to suck it up and do work that you don’t want or aren’t qualified to do. 

In many cases, this work includes some form of payroll management. Not only does this set you up for disastrous mistakes that can send your company into a financial tailspin, but it also takes away from operational tasks that should occupy your time. Why divide your attention with payroll work you don’t want to do when there’s a cost-efficient alternative? EORs charge relatively low rates that are easy to budget, so you’ll be able to outsource the work to them with little to no hassle. This enables you to focus more on the work you were meant to do and less on the tasks that require payroll experts.

2. An EOR Can Prevent Costly Errors

No matter how big your business, you don’t want to make an enemy of the Internal Revenue Service (IRS) or the Canada Revenue Agency (CRA). If you do, you can expect severe fines, lawsuits and other traps that can spell disaster for your company’s public image and financial well-being. The fastest way to attract these headaches is to submit payroll and tax documents that are riddled with errors. Thankfully, EORs can help you keep the peace with these regulatory bodies. If you partner with one of these services, they will put their knowledgeable staff to work on your documents, so you’ll never have to fret about audits or investigations ever again.

3. An EOR Offers Added Value

Even if you’re considering hiring a full-time payroll staff, you have to ask yourself a few questions. Can one or two employees match the dedication and oversight capabilities of a full staff of workers? Can your small team negotiate for more effective benefits packages? Will your small department offer you all the same value as an EOR? In many cases, the answer to each of these questions is no. So why waste your time with the other options when the right EOR is only a few clicks away?

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

Topics: Employer of Record

Why Your Business Needs Employer of Record Services

Posted by Stacey Duggan

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Oct 31, 2016 9:00:00 AM

Why-Your-Business-Needs-Employer-of-Record-Services.jpgIf you’ve ever had to handle any aspect of your payroll and human resources work, you’ll know how much of a hassle it can be. These tasks require intense knowledge and a versatile skillset, since one slight change can affect you entire payroll. Trying to complete this work on your own is like trying to fix an engine problem without a mechanic. You may be able to attempt the job, but you probably lack the skill, adaptability, and time necessary to do it right. In both cases, performing poorly can result in a big, expensive mess that you’ll have to pay someone else to clean up. 

That’s why your business needs an employer of record (EOR). These organizations employ payroll and HR staff that can help your business for less money than it would take to hire full-time employees. In addition to their cost-efficiency, these firms also offer you unique advantages that you can’t find anywhere else. Ideal for both established companies and newcomers alike, an employer of record can take the worry out of your everyday payroll and HR tasks. Read on to find out how your business stands to benefit from an EOR.

Their Tax Expertise Ensures Compliance

Salespeople may be familiar with their ABCs: “Always Be Closing.” For payroll experts, there’s a slight variation on the phrase: “Always Be Compliant.” When it’s time to do deductions, remittances, and other tax work, compliance with codes and regulations is essential. The Canada Revenue Agency will catch any mistakes, and when they do, their retribution is swift and merciless. Late filing penalties can cost you up to 17 percent of your outstanding balance if you don’t make your full payment for up to a year. No businessperson wants to pay that kind of fine if he or she can avoid it. Thankfully, they can. 

An employer of record can save you from breaking the rules. Their staff is trained in tax codes, hiring and payroll regulations, CRA policies, and more. This saves you the time and trouble of researching these rules yourself, but it also ensures that you won’t suffer from penalties or fines. From a simple cost-benefit standpoint, EORs will end up saving you money by preventing these undesirable expenses.

Payroll Professionals Won’t Misclassify Workers

If you’ve ever gotten caught for misclassifying a worker, you know that the penalty is not worth the crime. Some companies deliberately classify full-time workers as independent contractors in order to avoid paying benefits, fair wages, and tax deductions. While this seems like an easy way to shave overhead, it represents a highly unethical violation of your workers’ rights. These employees, along with the CRA, are unlikely to show any lenience to those who are caught engaging in this practice. Class action lawsuits, investigations, fines, and more will beset your business if you engage in misclassification. 

Even though companies deliberately misclassify workers, you can still accidentallymake this mistake. An EOR will ensure that this doesn’t happen. You’ll never have to fear a mistake that will torch your reputation among tax agencies and employees if you hire the right employer of record.

They Offer Extra Value for Lower Rates

Employer of record owners know that they can’t just offer lacklustre service if they want to stay afloat. As a result, many of these firms offer added incentives to their clients. This can range from added services to highly advantageous benefits packages for your employees. Considering an EOR will ultimately cost less than a full-time staff, the value of these extra features is astronomical.

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

Topics: Employer of Record

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