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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

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