Looking to expand your workforce into Canada? It’s a popular option for American companies, especially in the era of mobile work. There are plenty of talented and skilled Canadian workers who fit the bill for roles with American companies, even if you’re not planning a branch office in Vancouver or Calgary just yet.
There’s one major problem: payroll. Many companies decide to stay south of the border in order to avoid the headaches of paying foreign workers.
Luckily, there’s an option for you: payroll services in Canada. Even if you’re not planning to expand into Canada, you can still take advantage of payroll services offered by Canadian providers. Here’s how it can work for you.
Paying Canadian Workers
If you work for an American company employing Canadians, you could run into trouble in terms of paying these workers. Payroll services in Canada are the usual answer to this conundrum.
A Canadian payroll services provider has the expertise you need to navigate Canadian laws. Its team knows all about the various legislation protecting workers in different locations.
If you choose the right partner, its team should also have expertise in helping American firms who have Canadian employees.
Using Payroll Services in Canada
Some American firms don’t employ Canadians nor do they operate branch offices in Canada. Why would they want to employ payroll services in Canada then?
There’s a fairly obvious answer: price. The American dollar is currently worth more than the Canadian dollar, meaning US companies can pay less for the same service just by heading north. Since many Canadian payroll services companies already work with US firms that have Canadian operations, they have a great understanding of the US laws surrounding employment, reporting, and payroll.
It’s a great option for American firms looking to outsource their payroll services.
There’s another reason going north of the border for payroll services works so well for American companies. Since the vendor is Canadian, in Canada, and operating on Canadian soil, you don’t need to worry about tax the same way you would if you hired an American firm.
Since Canada and the US have tax agreements, you can realize some tax advantages by outsourcing to Canada. Although things may be changing in the US, so far, relations and tax arrangements remain favourable.
How to Do It
One reason American companies don’t contract in Canada is that it seems complicated! For many, particularly small businesses, it seems much easier to employ a US company.
Yet it’s no more difficult than contracting to another outsourced vendor in another country. Many companies do that, so you know it can’t be too difficult. If it were, they just wouldn’t do it.
Why Go North?
Why should you choose a provider in Canada? There are two reasons. The first is familiarity with US law. Many Canadian companies must be aware of US laws around worker compensation, taxation, and so on. Canadian and American businesses work together closely all the time, which means payroll services in Canada often have the advantage of a team of experts who truly understand the legal issues.
The other reason is that you may eventually cross the border. Canada is one of the first markets US companies expand to, precisely because of favourable trade arrangements. Canada is also a first-stop for American companies looking for skilled and expert workers. In short, you may soon be eyeing the Canadian market! Getting payroll services in Canada will only ease this eventual move into a new market.
Get the Advice You Need
It’s easy to see how and why American companies should take advantage of payroll services in Canada. Talk to a potential partner today and find out just how easy it is.