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Skills You Should Look For in an Employer of Record Service Provider

Posted by Stacey Duggan

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May 29, 2015 9:00:00 AM

Skills_You_Should_Look_For_in_an_Employer_of_Record_Service_ProviderExpanding business operations into Canada can quickly get complicated, frustrating and complex. With the differences in employee management, standards, and payroll, there are new Canadian-specific laws, regulations, and protocols that must be learned, understood, and followed. Plus, the administrative requirements that must be met before you can start hiring workers and selling your products and services into Canada can waste months of your time and be very costly. It’s no wonder that many firms decide to partner up with an employer of record (EOR) for recommendations, advice, and support. An EOR can handle the administrative and back office tasks, like payroll and HR, which can be overwhelming to handle alone.

But when you’re searching for an employer of record service provider, it can be daunting to ensure that you make the right decision. Choose to partner up with the wrong service provider and you can find yourself with more hassles and headaches than you originally started out with. Work with the right employer of record, on the other hand, and you’ll get the help you need to achieve success in the marketplace.

So to make sure you’re making the right decision, here are the skills you should look for in an employer of record service provider.

Legal Compliance

The biggest stress international companies have when expanding their business operations into Canada is complying with the employment laws, health and safety standards, and payroll protocols of the country. Canada is strict when it comes to employment standards, and every company must follow them to the letter. Naturally, you won’t know the ins and outs of Canadian legislature—and you probably don’t want to spend all of your time learning the ropes. When looking for an EOR, choose one that has legal experts on staff who knows every single law that applies to your business activities and employees. This skill is critical to your success and to ensuring that you’re always in compliance, so you aren’t hit with fines and penalties.

HR Services

Human resources encompass a wide range of responsibilities. From hiring, terminating, and training employees to handling human rights claims and making sure paperwork is in order, it takes a real pro to get every aspect of HR right. That’s why it’s so important to find an employer of record that can handle it all—an EOR that knows all of the rules and regulations—and keeps up to date on changing legislature. The EOR you choose should be an expert in human resources and offer comprehensive services in this area of business.

Payroll Processing

When you outsource your payroll processing to an EOR, you can save yourself a lot of time, money, and effort—but only if it’s done correctly. There’s a lot to know, from making the correct deductions, knowing the remittance deadlines, and accurately filing annual taxes and keeping track of vacation days, expenses, commission, and RSP contributions, and benefits. If your EOR isn’t well rounded enough to be able to handle any payroll issue that comes up, for any of your employees, you could be in trouble. Your employer of record should know the ins and outs of payroll processing.

It’s an Investment

Working with the right employer of record for your unique business needs is a sound business investment. Perform your research, do your due diligence, and find the right partner for your company so you can increase your chances of achieving success in Canada. EORs vary in skill level, service offerings, and professionalism, and it’s vital for you to find the one that will be the biggest benefit to your expansion.

7 Signs It's Time to Outsource Payroll

Topics: Employer of Record Service Provider

Grow Your Bottom Line Using an Employer of Record Service Provider

Posted by Karen McMullen

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Oct 8, 2014 8:05:00 AM

Grow Your Bottom Line Using an Employer of Record Service ProviderThe overriding goal of any business is to grow the bottom line. The two ways to do that are by increasing profits or reducing costs. For any business, but especially those on tight margins, the best approach is often a mixture of both. While the path to increased profits will be different for each business, cutting costs is often a similar process across industries. Find what you do well, and focus on doing it better. For everything else, find somebody who can already do it better and cheaper than you, and hire them. This is where an Employer of Record Service Provider (EOR) comes in.

Multinational Support

For a US based business looking to pay Canadian employees, the road can be long, complex, and expensive to navigate. Before paying employees, you'll need to meet all of the legal and administrative hurdles of a foreign business. The time and expense will raise your costs, and take directly from your bottom line.

Using an EOR, the costs are predictable, simple, and direct. You pay the EOR directly, and they pay your Canadian workers. There is no need to set up an administrative presence, purchase insurance, or attempt to navigate the many levels of bureaucracy. As a professional service provider located in Canada, an EOR already has the tools and assets in place to start paying your Canadian workers immediately.

Training Costs

For American companies that do try to go it alone, training and education costs are considerable and ongoing. Due to the complex nature of Canadian employment and payroll laws, you're never really done learning them. There will always be changes, interpretations, and exceptions to deal with. Without constant training and experience, things will slip through the cracks. The cost of training will come from your bottom line, as will the fines and penalties for any mistakes.

An EOR deals with Canadian payroll laws all day, every day. They are educated, well trained, and highly experienced. The employees of an EOR have seen every conceivable situation, and know how to deal with the most complex employment issues. The chances of errors are practically eliminated. Instead of having to pay one or two employees to stay up to speed, you can pay an EOR and get an entire team of service providers who know the laws in and out. 

Your Bottom Line is the Bottom Line

Most businesses outsource a variety of services. From plumbing to taxes, it's not worth the time to try to learn to do everything yourself. You opened a business to provide a specific set of products or services, and that's what you want to focus on. When it comes to paying Canadian workers, the rules aren't any different. Why spend your time and money trying to learn to be an expert on Canadian payroll laws, when there are more affordable options? An EOR gives you the services you need, while protecting your bottom line from the expense of unnecessary business pursuits.

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

Topics: Employer of Record Service Provider, Grow Bottom Line

3 Things You Didn't know About Employer of Record Service Providers

Posted by Ray Gonder

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Aug 8, 2014 9:05:00 AM

3 Things You Didn't know About Employer of Record Service ProvidersFor businesses in Canada the term employer of record is well known. However, US businesses may be more familiar with the term PEO (Professional Employer Organization) and not realize that the two are quite comparable. Despite the lack of familiarity, an employer of record service provider could be a huge benefit to any US business contemplating hiring employees within Canada. Here are three things you may not know about an employer of record service provider, and how they can help your business.

EOR vs PEO

In the US, professional employer organizations are quite common. They're used by a wide variety of businesses to outsource employee management processes. They handle everything from payroll and HR, to remittances and compliance. Businesses rely on PEOs to handle many of the HR tasks they don't want to handle in-house. What you may not know is that Canada has its own equivalent to the PEO.

An EOR is the Canadian cousin of the PEO. They provide the same services throughout Canada that PEOs provide throughout the US. Like PEOs, EORs provide their services to businesses of every size, complexity, and industry. Without an employer of record, a foreign company just looking to hire someone in Canada, can run into plenty of administrative roadblocks that often deters the company from engaging with the possible employee.

Cross-Border Support

Hiring Canadian workers for a US is an expensive and time consuming process. There are logistic, legal, and administrative hurdles that have to be overcome before the hiring can even occur, not to mention the headaches keeping up to date on employment standards that can affect payroll. All of these tasks take time and money, and require great attention to detail to avoid costly mistakes. What you may not know is that an employer of record service provider can greatly simplify this process.

An EOR can help US businesses avoid many of the onerous tasks involved with hiring and paying Canadian workers. Without an employer of record, a company would need to spend months setting up the necessary business registrations, government accounts, banking and insurance infrastructure before being able to extend an offer of employment.

An EOR has all of these things in place and take on the role of the employer in the eyes of the Canadian government so the US company does not have to meet this criteria in order to have the benefit of a Canadian worker.

Savings Over Time

Hiring Canadian workers is just the first step in the process. After that, there are ongoing legal and regulatory responsibilities that will take time and focus away from your business. Ongoing training for HR managers, payroll compliance and filing, and employee training are all continuing expenses that your business will have to deal with. What you may not know is that an EOR can handle those responsibilities for much less than it would cost in-house.

EORs handle these issues for a wide variety of clients. To do that, they already have the training, software, and expertise to streamline the processes, and make them as inexpensive as possible. By using an EOR, you're sharing the expenses with a wide pool of other businesses, meaning that nobody has to pay for new software, training, or education on their own.

An employer of record will have in house expertise when it comes to Canadian employment standards, legal system and taxation compliance so you can reap the benefits of having a Canadian worker much quicker and easier than you would if you had to do it on your own.

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

Topics: Employer of Record Service Provider

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