As a U.S. or international company that’s seeking to expand business into the Canadian market, many challenges arise when looking for dependable payroll services. For American employers, the Canadian market seems so similar to the U.S. that businesses often fall short of getting all the help they need. For international employers, Canada’s ever-evolving compliance can lead to high costs for both their financial resources and reputation.
Finding dependable payroll services is more than just finding someone to outsource your payroll responsibilities to. In truth, the search is also about landing a payroll service provider that can help keep your foreign company abreast of any changes to Canadian business legislation—changes that could affect the growth of your business.
With the above in mind, check out below for our top three tips for finding dependable payroll services.
1. Is the Payroll Provider an Employer of Record?
The first question you need to answer to determine if you’ve found the right payroll services processor is whether they are an employer of record (EOR) or not. An EOR doesn’t just process payroll data and print cheques to order, they take over the legal responsibility of your employees—and the risks that come with that designation.
An EOR will be capable of both properly hiring and onboarding your Canadian employees, as well as ensuring your federal and provincial compliance is in order. EORs can also help you register and maintain all necessary accounts for operating a Canadian business, establish your financial infrastructure, and keep your workplace standards up to date.
Running a business in Canada isn’t as simple as opening up a branch and continuing on with your status quo. You need to become an expert in Canadian employment and taxation regulations. A payroll processor that is also an EOR will integrate with your daily operations, making managing Canadian employees simple and easy.
2. Is the Provider a Canadian Authority?
Dealing with Canadian compliance can become increasingly thorny when you don’t have a payroll services processor that can navigate the intricacies of business legislation, especially when it comes to handling official issues or queries with the Canadian government.
There’s a lot of information out there regarding proper employment practices in Canada, including what the employees’ rights are, how their benefits package should be managed, and what their wages should be. Now, take into consideration that all this information will vary from province to province and territory to territory.
Ontario, for instance, has just updated and revised its Employment Standards Act, changing standards for benefits, leave and vacation pay, the minimum wage, and more. The Fair Workplaces, Better Jobs Act, which was passed as of November 2017, has changed the game for all employers in the province whether they are local or foreign.
Your payroll processor should be a recognized authority by the Canadian government. Not only will such a processor maintain ongoing compliance, it will be capable of maintaining your credibility and great reputation as a Canadian business.
3. Demystify Cultural Variances
Finding dependable payroll services is really about finding a payroll processor that can make sense of all the cultural variances between your U.S. or international business and Canadian businesses. You need a processor that isn’t just a business you outsource the automated printing of your cheques to.
You’ll want a processor that reviews all the payroll data before those cheques are printed. A proficient processor will help you avoid any mistakes that could cost you in fines and a sullied reputation as a Canadian branch of your U.S. or international business.
Some of the best processors even have cloud-based systems to streamline payroll management, allowing you to track and review all payroll data before you send it off to be double-checked and processed.
You leave many things to chance handling payroll on your own. Landing a dependable partner for outsourcing payroll processing will ensure your Canadian business branch thrives.