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How to Choose the Best Employer of Record

Posted by Stacey Jones

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Aug 20, 2019 9:00:00 AM

choose-employer-of-recordExpanding into the United States is both exciting and a little intimidating for most Canadian business owners. The American market has a reputation as being a tough nut to crack, but if you succeed there, you can succeed anywhere.

Canadian business owners sometimes feel a little lost when it comes to the nitty-gritty of their US operations. When you step over the border, there are many changes, ranging from tax law to minimum wages to health care. As an employer looking to hire on American workers, you may not be sure where to start.

One smart move is to work with an employer of record. An employer of record can help you navigate and succeed in an unfamiliar business landscape. There are many EORs in the US, and each of them offers something a little different. How can you be sure you’ve picked the right partner for your business?

The following tips can help. Read on to learn how to choose the best employer of record for your business needs.

Define Why You Need an Employer of Record

The first step you should take is to define your business’s needs. Since each EOR offers something a bit different, knowing what you need could help you single out the best fit for your business.

Consider what you need the most help with. Is it locating talent, or do you require more help with navigating US payroll? How familiar are you with US business taxes or employment legislation in the state you’ll be operating in?

Most Canadian employers find they need a comprehensive suite of services. Look at what each EOR specializes in. Some may be more focused on helping you find and hire talent, while others place their pride in the payroll services. At the end of the day, any EOR you hire should be ready to help you manage your US employees from end to end.

Do Some Research

The next step to finding the right EOR for your business is to research different firms. You’ll want to ask plenty of questions during this stage.

First, make sure the EOR offers the services you’re most interested in. Then, check that they serve the area you plan to operate in. You might find a great EOR, but if their service is limited to Maryland and you plan to open up shop in California, you might have a problem.

Next, compare EORs who offer the services in your new location. Do they have a specialty? Do they offer additional services that could help you as your business expands?

The final step of your research should be reaching out to some of the employers of record you’ve researched. Ask about their experience in your industry or call for a quote.

Evaluate Offers and Customer Service

With a few quotes in hand, you can begin to compare EORs and determine which one is best suited for your business needs. While getting the right services at the right price is important, you’ll also want to consider the customer service you receive.

How quickly does the EOR’s team get back to you? Can they answer your questions about payroll or workers’ compensation? You should walk away with a sense of confidence. After all, this is a partnership. You’ll be working with the EOR for some time to come, so if they’re not meeting your expectations during the research and quotation phase, you should think twice about signing on the dotted line.

Get Ready to Grow

The final matter you should think about when you’re looking for the best EOR is the future. If you partner with this EOR today, will they still be able to serve your needs a year from now? Five years from now?

The employer of record you choose should be ready to grow with you. Finding the right EOR could be just a click away.

Topics: EOR, Employer of Record, Canadian Employer of Record, Employment of Record Services

How an Employer of Record Can Help Your Company

Posted by Stacey Jones

|

Aug 6, 2019 9:00:00 AM

As you look to take your business south of the border, you may have many questions. Canadian business owners sometimes feel a bit daunted by entering the US market, and for good reason. There are many different rules to be aware of, as well as things such as cultural architecture-buildings-city-861609differences.

One of the smartest decisions any Canadian business owner could make is to ask for help. You have plenty of choices when it comes to picking a partner, and all of them offer something a little bit different.

One option you may consider is an employer of record (EOR). It’s important to consider what an EOR does, and how they will help you grow your business. 

An Employer of Record Makes Compliance Simple

One of the most compelling reasons to work with an EOR is that they already know the US market. They’re aware of the different rules and regulations. You can call on their expertise to help you navigate these uncharted waters.

Compliance work is key to a business’s success, but it might be a tall task for even the most talented of HR teams. By working with the EOR, you could reduce the amount of time your team spends sorting out taxes codes and deciphering employment law.

EORs Save Businesses Time and Money

Since the EOR works to make your US operations comply with the letter of the law, they can help you avoid hefty fines and penalties. Taking a look at payroll showcases how the EOR helps and provides value.

The IRS reports the average small business pays $845 US per year in payroll fines. Late payments are the most common issue. By working with an EOR, you can avoid late payments and other US payroll missteps. That puts money back in your business’s pocket. You could probably think of a few better ways to spend nearly $850.

More than that, the EOR also saves you money by reducing the amount of time you spend on tasks like payroll and compliance. Since the employer of record’s team is made up of experts, they make quick work of almost any task you set out for them.

Boosting Employee Satisfaction

Canadian business owners should consider working with an EOR to increase employee satisfaction.

How does an EOR make your employees happier? The EOR’s expertise and skill in delivering HR services make it easier to manage your employees the right way. They can help you offer the right compensation package to your US workers, as well as handling payroll, worker’s compensation, and more.

Better yet, they could also advise on where your company policies might be improved to make your firm more attractive to prospective candidates. This makes it easier to hire the right talent and keep them onboard longer.

Navigating Cultural Difference

One thing Canadian business owners may not think of is just how different American work culture is from their own. American workers have very different expectations than Canadian ones. They even prefer different styles of communication and leadership.

Those elements might cause friction between your business and those who work for you. By working with an EOR, you can change the story and provide a better workplace environment. An experienced EOR could help you pinpoint problem spots, and advise you on how to narrow the gap between your Canadian company culture and what your US workers expect from you.

Increase the Success of Expansion Efforts

Perhaps the biggest benefit of working with an EOR is their ability to help you succeed in the US market. Many Canadian business owners make missteps when they go it alone, which may cause problems for the business.

By calling on the experience and expertise of the EOR, you can make expanding into the US much smoother sailing. If you’re curious about what an employer of record could do for you, get in touch with an expert team today.

 

Topics: EOR, Business Expansion, Employment of Record Services

Should I Get an Employer of Record or a PEO?

Posted by Stacey Jones

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Jul 23, 2019 11:00:00 AM

If you’re hoping to expand into a new market, chances are you’ll be hiring some workers on as part of your team. Employment management is a challenging task in almost any company, even when you’re only managing workers in your home country.

When you move to a new market, you may find compliance, insurance, and even payroll present new challenges. You know you will need a partner with the expertise to help you manage everything, but should you hire an employer of record or a professional employer organization (PEO)?

Determine Your Needs

The first question you should ask yourself is what you need help with the most. If you need help hiring people for your business, an employer of record might be the right choice.

If, on the other hand, you find you need more help with maintaining compliance or administering payroll, then a professional employer organization (PEO) could be the right fit for your business.

When you work with a PEO, you retain control over hiring and termination. The PEO becomes more like a co-employer.

An employer of record, on the other hand, assumes full responsibility for hiring and termination. Some employers like this arrangement, since it reassures them that HR tasks are being handled by the experts. Others feel it gives them too little control over who is working for them.

Thinking Long-Term vs Short-Term

Another way to think about the employer of record vs PEO question is to ask if your concerns are short-term or long-term.

If you’re looking at short-term hires or temporary employment, then working with an EOR may make the most sense.

If you’re thinking about hiring permanent employees to work for your business, then a PEO partnership could serve you well. The PEO can help you manage compliance, look after insurance, and administer payroll. If you know employees are only going to be with you for the short-term, you may not want to sign up for payroll services on an ongoing basis.

What Is Your Expertise?

If your team is full of hiring and recruitment experts, you may not need much help with this task. Additionally, you might want to retain control over the hiring process to make sure you’re finding people who are a good fit for your company.

You might find that you need more help with other HR tasks, such as compliance or payroll. As mentioned, working with a PEO could be the answer. The PEO provides an expert team to help you with everything from insurance to compliance to advice on benefits and procedures.

If you’re unsure your HR team is equipped for hiring or terminating employees in the new market, then working with an employer of record should be an option you explore.

Looking at the Bottom Line

One question that comes up when business leaders try to decide whether they need employer of record services or the help of a PEO is the price point. Will one service be more affordable than another?

In many cases, it comes down to what the business requires. The price of either EOR or PEO services will change with what you need.

For some businesses, the PEO will be the right fit. You retain more control, which can be important when it comes to hiring the right people for your business. Their expert advice assists in maintaining compliance in different markets, but it also gives you the opportunity to synchronize your policies and procedures.

With an employer of record, on the other hand, you can rest assured that hiring tasks are being taken care of by an expert team. You also know that your compliance will be top-notch thanks to the EOR’s expertise.

Finding the right services for your business just takes some evaluation of your business needs. Still unsure? Talk to the experts today.

Topics: Business Expansion, Employment of Record Services, American Companies Paying Workers in Canada, payroll outsourcing

What's the Difference Between PEO vs. Employer of Record?

Posted by Stacey Jones

|

Jul 11, 2019 10:54:16 AM

Did you know businesses that partner with a professional employer organization can expect to grow up to 9 percent faster than those who don’t?

These statistics may have you wondering if a PEO (professional employer organization) partnership is right for your business. Within HR circles, though, you might have heard the term “employer of record.” Some people use these two terms interchangeably, but they’re actually two very different entities.

What can you expect working with a PEO vs employer of record? The differences might surprise you.

PEO vs Employer of Record Relationships

The most fundamental difference between a PEO and an employer of record is how either organization relates to your business and your workers.

An employer of record assumes all legal responsibility for the people who work for you. They are, in effect, the employer. They’ll handle almost every task related to hiring, termination, and everything in between. Your workers will answer to the employer of record.

A PEO, on the other hand, becomes your co-employer. Together, you’ll handle HR tasks related to employment.

Who’s Driving?

Another way to think through the differences between a PEO vs employer of record is to consider the subject of control.

With an employer of record, you have relatively little say. The EOR assumes responsibility for hiring and employment contracts, as well as benefits, insurance, and even business registration. This can be a good option for employers who want to enter a new state or country, but don’t necessarily want to set up shop there.

When you work with a PEO, you’ll have much more control over HR processes. The PEO offers valuable advice, but you generally have full control over hiring and employment contracts. The PEO may offer you access to insurance or benefits plans as well.

Think about Your Needs

The best way to settle the PEO vs employer of record debate in your business is to ask what you need.

If you plan to open a new branch office or establish a subsidiary, a PEO might be the right partner for you.

A PEO is also the better choice when you want to stay in the driver’s seat, but expand your HR capabilities. The PEO is there to help you maintain compliance with local employment laws and enhance your HR capabilities.

For this reason, a PEO is a better long-term solution than an EOR. If you just want to get people hired on quickly, an EOR might be the right move for your business.

An employer of record also reduces your liabilities when you enter a new market. Since they assume the employment relationship, the EOR alone is responsible for compliance, insurance, and employment contracts.

Expanding Your HR Operations

Perhaps the biggest advantage of working with a PEO is that it could help expand your HR team almost instantly. Many small and medium-sized businesses can offer much more to their employees when they work with a PEO than they could otherwise.

The employer can also find a balance between managing their responsibilities on their own or giving up control.

A great example is payroll. A PEO will administer payroll for your employees in compliance with all the local laws. Your HR team doesn’t need to get bogged down in the details of learning Canadian payroll, but they can rest assured it will be done correctly every time.

Which Is Better?

Many HR experts ask this question, and the answer is always “it depends.” Choosing to work with either a PEO or an employer of record means carefully examining your business needs.

If you haven’t determined which is the best choice for you, get in touch with the experts. They can help you assess what your business needs and goals are, then help you decide which solution is the right fit.

 

Topics: PEO, Professional Employer Organizations, Pay International Employees, Employment of Record Services

How Your Business Could Benefit from Employer of Record Services

Posted by Shannon Dowdall

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Apr 20, 2016 9:00:00 AM

How_Your_Business_Could_Benefit_from_Employer_of_Record_Services.jpgLike a lot of businesses lately, both large and small, you've probably considered the possibility of expansion into another country. Some choose to explore completely foreign markets while others feel comfortable expanding into somewhat familiar spaces—like US companies that move into Canada. The idea has a lot fantastic benefits. Consider the new opportunities—fill gaps that haven't been filled, find new talent, work your way into becoming a multinational corporation, and more!

That said, there are definitely obstacles that may concern business owners. Moving into a new country can be a challenge and handling it on your own can be even more difficult. Luckily, you don't have to be on your own. More and more companies have been discovering the benefits of employer of record services (also known as an EOR or PEO) and now know that expanding is no longer something to fear.

Skip the Paperwork

The largest complaint businesses have about entering a new country is the amount of paperwork that's needed in order to get started. Much like their native registration process, it requires a lot of time, effort and research to do properly—but many are already unsure if they really want to have to repeat the process in a whole new environment, let alone with different standards and laws. This means applying for a business number, setting up banking and insurance infrastructure, establishing a location or home base for operations and signing off on health and safety codes, employment regulations, and more.

When you engage employer of record services, you can skip the entire ordeal. Since they're already an established company, with all the infrastructure and paperwork required, you can simply partner with them and be done with it. In that vein, they can begin hiring employees on your behalf almost immediately and give your operations the kick-start they need.

Protect Yourself Legally

Another major hassle associated with business expansion is the need to learn all the new laws pertinent to you, your business, and your workers. While many laws seem familiar, others might be completely different and often vary depending on your location. No matter what you do, these new laws will effect every aspect of your business—hiring, firing, daily operations, payroll, and human resources. It's a lot of work for a business, especially a small company or start up, to study up on all these new rules amidst a business expansion.

When you deal with employer of record services, most of these tasks can be cleared off your desk. EOR come with the benefit of already knowing all the regulations that need to be followed, and have all the certifications required when managing health and safety codes, human rights policies, and more. Not only can they help walk you through what you need to know on your end, but they'll handle anything that comes their way when it comes to your employees. This means they can even handle your taxes for you. Forget having to navigate thousands of new laws—let the experts deal with it on your behalf.

Easier Payroll and HR

Quite possibly the best part of employer of record services is the various tasks they can manage for you. When you consider how stressful an expansion can be, and all the planning and thought that needs to be put into operational strategy, it would be a fantastic relief to have less on your plate in the background. Employer of record services can manage HR and payroll for you, which simplifies the process of trying to pay foreign workers. Whether it's a simple paycheque or a mess of unfamiliar deductions and holidays, they can sort it out on your behalf. All you need to worry about is a single flat fee, and everything else is done.

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

Topics: Employment of Record Services

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