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6 Tips for Selecting a PEO Company for Expanding Your Business into Canada

Posted by Stacey Jones

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Aug 8, 2019 9:00:00 AM

A growing business is a good problem for any American business owner to have. To sustain that growth, you’re going to eventually look at expanding into new markets. You may even be thinking about crossing borders.

peo-company-for-canada

Canada is often the first stop on the list for an American company with international aspirations. It makes perfect sense - Canadians and Americans share a border, a language, and even a similar culture.

However, his thought process unfortunately leaves many American companies open to making missteps during their Canadian expansion. If you’re thinking about expanding your business into Canada, then finding the right partners to help you handle payroll, employee management, and more is key. A professional employer organization (PEO) could be the right partner for your business.

So how do you pick the right PEO company to team up with? These six tips can help you narrow down the field.

1. Think about What PEO Company Services You Need

Before you research PEOs, take a step back and think about what you need the most help with. Are payroll and tax deductions keeping you up at night? Maybe compliance concerns have you treading lightly as you head over the border.

Most companies need assistance with a wide range of tasks as they expand into Canada. The right PEO will be able to offer you a suite of services to suit your needs.

2. Create Company Profiles

As you search for the right PEO company, there are a few key questions to ask.

The first is about geography. What areas does the PEO serve? You may be planning to expand into one province to start, but what will happen if you later decide to set up shop in Nova Scotia, Ontario, and BC?

You need a PEO that operates from coast to coast. Picking a company that serves everywhere in Canada now will save you the complexities of switching companies later on.

You’ll also want to ask about company history. How long has the PEO been around? An experienced PEO will have the knowledge and expertise to help you succeed in the Great White North.

3. Ask about the Claims Process

Most PEOs will handle unemployment and workers’ compensation claims, so ask a few questions about your potential Canadian PEO partner’s process.

Do they offer comprehensive insurance for your workers? Do they have an in-house team that handles these claims and can ensure your company is in lockstep with the law?

Compliance can vary by province, so make sure the PEO company you choose is well-versed in the areas you plan to operate. This will save your company the headaches of trying to navigate compliance on your own.

4. Think about Benefits

Navigating health insurance in Canada is much different than it is in the US, so find a PEO who can help you offer the right plan for your workers. In many cases, health savings accounts are a great way to offer Canadian employees the supplemental health insurance they want and need.

Retirement savings plans are also important to Canadian workers, and some PEOs will be able to assist you in offering RSPs without the hassle.

5. Look at Payroll Services

Payroll is one of the biggest concerns for any company, whether they’re expanding internationally or not. Administering payroll in one country can be difficult enough.

A PEO can help you administer Canadian payroll the right way. Be sure to ask what the provider includes in their payroll services. Some will go the extra mile to help you meet all of your commitments with ease.

6. Get a Hand with HR Services

The biggest difference between PEO companies is often the extent of the HR services they provide. Look for a company that offers comprehensive coverage. You want someone to help you manage your Canadian employees and employment policies every step of the way.

Start your research today and get in touch with the experts. Discover exactly what the right PEO company can do for your expanding business.

 

 

Topics: PEO, PEO Services, Canadian PEO

Can Professional Employer Organizations Increase Employee Satisfaction?

Posted by Stacey Jones

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Jul 25, 2019 11:00:00 AM

 

You may know some of the benefits of working with a professional employer organization (PEO) has for your company. For example, businesses that work with a PEO see improvements in their revenue growth, and even their longevity.

What impact do PEOs have on your employees? Some people might think working with an outside organization to deliver HR may reduce employee morale, but there’s evidence to the contrary. In fact, working with a PEO could improve employee satisfaction. Here’s how.

Professional Employer Organizations Do Payroll Right

Many employers team up with a PEO in order to deliver payroll. This is especially true of global companies that operate in multiple international markets. Payroll rules might differ vastly from country to country, and state to state. Rules are almost always in flux, which can make it difficult to keep up.

If a company is new to the market or struggling to keep up, this could mean delays in employee payments or mistakes in payroll. Working with a PEO resolves many of these issues, since they have the expertise to make sure payroll is done correctly and on time.

A PEO Can Improve HR Delivery

Professional employer organizations specialize in HR services. That goes beyond payroll, and may include services like compliance monitoring, employee development, and more.

Across all of these HR services, the PEO works to improve delivery. That could mean they expand employee development programs by offering your team access to more training opportunities, or it could simply mean that HR’s response time decreases.

Across the board, though, PEOs can help employers improve HR delivery, especially for their international employees.

PEOs Reduce Turnover

More clear evidence that PEOs improve employee satisfaction is that companies that work with a PEO see a 10 to 14 percent reduction in their turnover rate.

Turnover rates are a good indication of employee satisfaction. If employees are dissatisfied, they’re more likely to leave the company. The more satisfied an employee, the longer they’ll stick around, often because they have a positive experience when coming to work.

How do PEOs decrease turnover rates? There are a few ways. First, working with the PEO improves compliance. Their advice may help you find employees who are truly a great fit for your company. They might also make recommendations about benefits packages or policies that can make a workplace more attractive to employees.

They can improve communication with employees as well. They’re able to deal with HR issues in a timely manner, which improves employee satisfaction.

Finally, the PEO could offer employees more opportunity for development. Clearer policies, better support, a better compensation package, and a solid development program are all key to employee satisfaction.

Easing Cultural Differences

Another key point global business leaders must consider is culture. Whenever you enter a new international market, you should be prepared for employees to have different cultural expectations.

These expectations may be subtle, such as Canadians preferring consensus-building, while American employees prefer more top-down direction. Even these seemingly minor differences, though, may lead to culture clash and decrease employee satisfaction.

Working with a PEO can help both sides smooth over any cultural wrinkles in the relationship. The PEO might be able to bridge communication styles. Their advice could help you understand employees who live and work in another country, so you can offer them the right supports and benefits.

Is It Time to Hire a PEO?

If you’re moving into a new market, then it may be time to consider partnering with a PEO. Working with them from the start to design your employee programs, policies, and management style can help you ensure employees stay satisfied for the duration of their tenure with you.

Topics: PEO, Employee Relations, PEO Services, Canadian PEO

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

Posted by Stacey Jones

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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

4 Tips for Choosing Partners before You Expand into Canada

Posted by Anna Mastrandrea

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May 15, 2019 9:00:00 AM

4 Tips for Choosing Partners before You Expand into CanadaWhen your business decided to expand into Canada, you knew you had your work cut out for you. You needed to conduct rigorous market research and determine the best business structure for tax efficiency. You needed to think about your workforce and your logistics.

Download "12 Differences to Expect When Expanding into Canada" today!

In many cases, you’ll want to partner with other firms to help your expansion efforts. You may decide to work with a lawyer to ensure you're making the right legal decisions for the business. Partnering with a professional employer organization (PEO) is also a great idea. 

How should you go about choosing your partners? The process should begin before you put the wheels in motion. Here are some tips to get started.

1. Find the Right Legal Advice to Expand into Canada

Before you do anything else, you should partner with a legal partner to consider the legal ins and outs of an expansion to Canada. This might be a lawyer or another legal professional.

This partner can help you assess the current legal climate and make the right decisions for setting up your business. A tax lawyer might be able to inform you about the best way to create tax efficiency. A business lawyer and an employment lawyer can share insights about their fields of expertise.

These partners can help you craft better policies and even structure your business correctly. Without the right legal advice, your expansion may not get off the ground. You could find yourself tied up in red tape.

How do you choose the right legal counsel? A general rule of thumb favours expertise and specialization. Find someone who deals with international businesses entering the Canadian market on a regular basis.

They’re much more likely to have the expertise to make the process quick and easy, even if they do charge a higher per hour rate. With their insights, you’ll be up and running sooner.

2. Choosing a Banking Partner

When you expand into Canada, you’ll need funds to fuel your operations. That means you’ll require the right banking partner to support the financial side of the expansion.

You’ll want to employ the opposite strategy here. Instead of seeking a specialized partner, choose someone with a broad range of expertise.

There are many players in the banking industry, but only some of them will be the right fit. You want a banking partner who can grow with you. If the partner you choose is too niche, they may not be able to support your growth. That could tie you up as you try to unravel the partnership and engage another entity.

Be sure to examine which banking partners best reflect your growth strategy. If their capabilities and values line up, you’ll find a more flexible, supportive partnership ahead.

3. Get On-the-Ground Help with Property

If you need to acquire land or real estate, you should seek out an environmental expert. This specialist will help you understand local rules. They’ll also reduce your risks.

Going in alone could mean you purchase a building that isn’t up to code or land that isn’t zoned for your use. You might also be responsible for maintaining or remediating a property to environmental standards.

The right help here is invaluable.

4. Partner with the Right PEO

A professional employer organization can help you navigate the details of having a workforce in Canada. Experts at a PEO can assist with payroll, HR, and compliance. They can offer other services too, such as health spending accounts for employees.

The right PEO typically has expertise in helping international businesses as they expand into Canada. They also have a network of other professionals and knowledge they can draw on to make expanding easier than ever. And they'll already have the infrastructure you need to expand. 

Do your research before you begin expanding, and begin building relationships with your Canadian partners as soon as possible. With the right network, it’s easier than ever to expand into Canada.

blog-cta-7-tips-to-help-you-hire-the-right-peo

Topics: PEO

Hiring in Canada? You’ll Need a PEO to Save Stress, Time, and Money

Posted by Stacey Jones

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Jun 3, 2016 9:00:00 AM

Hiring_in_Canada_Youll_Need_a_PEO_to_Save_Stress_Time_and_Money.jpgAcquiring talent for your company is no easy task, and it becomes even more difficult when the 'well runs dry' in the U.S. If you're struggling to find qualified local candidates, you should join the thousands of American businesses that have taken advantage of experienced Canadian workers.

While looking up North to Canada for employees is wise, it can be quite challenging for U.S.-based companies to ensure they are in Canadian compliance when paying their Canadian staff. To avoid the common pitfalls of international employment, you need to seek the help of a professional employer organization (PEO). From outsourced payroll services to managing Canadian laws, these global management services enable you to get the most out of your new employees.

Before you begin hiring Canadian employees, you should learn about the differences in employment between the two countries. Here's a quick overview of Canadian compliance, and how a professional employer organization can help you bridge this gap smoothly.

Complete Payroll Solutions

Companies hiring within the U.S. are strongly encouraged to invest in outsourced payroll providers, but these services are particularly essential when it comes to hiring Canadian workers. There are more than 190 regulatory legislative requirements when it comes to payroll processing in Canada, and failing to adhere to even one of these regulations could put your business in jeopardy.

Avoid Bureaucratic Confusion

Perhaps the most significant benefit of a professional employer organization is that it allows you to reallocate your in-house staff and resources to other tasks. Small businesses stand to benefit from outsourcing payroll and HR services to a dedicated company because it allows them to focus on their core business. If you're stuck on the phone trying to figure out Canadian payroll legislation all day long, you'll never reach your full potential as an organization.

Bridge the International Gap

Some U.S. firms are hesitant to expand into Canada due to the jurisdictional differences between the two countries, but this can be a grave mistake. Canadian is full of qualified employees who can often work at a lower rate than you're paying your current workers. You just need a trusted third-party to handle government remittances and other tasks to bridge this international gap.

Hiring Canadian workers is truly one of the best ways to grow your business, but you need a bit of help for this transition. Learn more about PEOs and experience the many benefits of outsourced payroll solutions.

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

Topics: PEO

How Do Employees Benefit from a PEO Arrangement?

Posted by Corinne Camara

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May 13, 2016 9:00:00 AM

How_Do_Employees_Benefit_from_a_PEO_Arrangement.jpgWe know by now how a PEO arrangement can benefit businesses by saving ample amounts of time, resources, and money in both the short and long term. Outsourcing peripherals is an excellent way to promote growth within small companies, or help larger companies focus on their more direct goals. A PEO can even help a business expand into another country with ease.

That said, there is some concern about how they can help employees directly. Questions arise: what benefits are there for my workers? The business may be saving money, but does it help staff? These are important questions, and ones commonly associated with discussions revolving around outsourcing. The fact is, there’s a number of ways employees can benefit from an arrangement with a PEO. We’ve listed just a few.

Higher Accuracy

Because of it's relative complexity, both payroll and human resources departments are bound to make mistakes, especially in smaller companies where they're understaffed, overworked, and on tight deadlines. These mistakes can be relatively harmless and completely unintentional, but they can cause much bigger problems, especially for your workers.

Consider how often hourly paychecks get miscalculated—it's a topic of discussion among many hourly workers and has happened to most of them at least once. Employees need to know they will be paid on time and paid correctly. Like everyone, they have budgets and bills to worry about, and a mistake in their paycheck can have big consequences. Late paychecks can result in trouble as well, and if these problems become consistent (whether intentionally or not), they can result in lawsuits and fines. When you enter a PEO arrangement however, you're outsourcing these kinds of things to a larger team made up of the top people in their field. This means the changes of mistakes go way down and your employees can feel more secure in knowing that even a tiny mistake won't get in the way of their lives.

Free Up Time to Focus

Payroll and human resources are arguably two of the biggest time hogs in business—no matter how many people you have managing each, it takes a great deal of energy, money and resources to complete it properly. And remember: it has to happen on a regular cycle. Whether it's a small company struggling with the assets they have to complete the tasks, or a large one looking to increase their efficiency, many have entered into a PEO arrangement simply to take their own time back.

PEOs are full teams of experts—they know the law, they know accounting, they know payroll and human resources management, and they have the kind of resources most businesses simply can't afford. This means up to date knowledge of regulations that may shift year to year, or a firm grasp of cutting edge technology. One way or the other, they're always ahead of the curve. When you deal with a PEO, you free your current employees up to focus on your core operations—no more slogging through peripheral work, they're able to be creative and lend their skills to the most important aspects of your business instead.

Benefit Management

The topic of benefits has become more critical in the workplace as of late, with many employees insisting that they'd rather have benefits than a pay raise. This creates a quandary though for many companies—they simply don't have the money to provide the kind of benefits that would attract and retain skilled employees.

Because PEOs deal with employees from all kinds of workers, your PEO arrangement can get you quantity-based benefit package deals that you can only imagine. This means higher quality benefits for a much lower cost, something that allows even the smallest of businesses to offer only the best to their employees. And that's something we can all be happy about.

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Topics: PEO

Why Would a Business Use a PEO?

Posted by Karen McMullen

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May 9, 2016 9:00:00 AM

Why_Would_a_Business_Use_a_PEO.jpgPEOs (or professional employer organizations) are increasing in popularity among businesses, regardless of the industry. Small, medium, and large companies alike have had their curiosities peaked by the boundless information that's becoming available on the topic, and are following the lead of industry leaders who have taken advantage of PEO services.

That said, many questions remain. We may know a lot about PEOs themselves, but what is it they do and more specifically, how can they help businesses? We know they provide certain services like payroll and HR help, but what sets them apart from any other agency? Luckily, we have the answers to those critical questions.

Increase Payroll Efficiency

First and foremost, PEOs are known for their expert grasp on payroll—and payroll is more time-consuming and expensive than you might think. In Canada alone, there are over 190 different labour and payroll laws that have to be taken into consideration for each paycheque. It adds up quickly.

A professional employer organization will help your business manage their bookkeeping and remittances, garnishments and taxes, deductions for RSPs, the CPP, Employment Insurance, and more. Instead of hiring a full team to manage things for you (which can be costly), or having one or two people struggle through this alone (which can create expensive errors), hiring a professional employer organization means you're delegating to the experts. PEOs will get things done properly and it will all be clearly laid out on a single invoice before you know it.

Legal Compliance

Payroll and human resources are both very complicated aspects of business, and because of that, a great deal of smaller companies struggle to handle it all in-house. Surely, not everyone can afford lawyers and great legal minds to pick apart the intricacies of contracts, payment, taxes, and more—and that's where a PEO shines. They're not just experts in payroll, they're experts in law as well.

Whether you're concerned with business registration, contract and employment law, human rights codes and regulations, tax laws—PEOs are equipped to handle it. Because this is their focus, they can deal with commonplace issues with ease and are also adept at dealing with rare things that can crop up as well. You don't have to worry about misclassification again, and you can help reduce your risk of costly mistakes that could open you up to lawsuits, fines and penalties, or perhaps even jail time.

Business Expansion

There's no doubt that business expansion into a new country is often a trying event, even for businesses with experience. Administrative work and business registration alone are enough to give anyone a big headache, let alone the issue of how to hire and pay your new foreign workers. Thankfully, this is yet another task a PEO can take off your plate.

As experts in payroll, human resources, and legal compliance, you couldn't have a better partner for your business expansion than a PEO. From establishing an administrative presence in your target country to obtaining a business number, these are steps you can happily rely on a PEO to handle. Since they are already established in Canada (and thus, already fully compliant, complete with insurance, banking infrastructure, and tax setups) they can hire employees on your behalf and contract them to you based on your specifications. This means you can get started working with the best employees without any of the registration trouble. They'll manage your workers payroll, HR and taxes on your behalf as well, which leaves you with little to do but concentrate on your goals.

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

Topics: PEO

How Does a PEO Arrangement Work?

Posted by Stacey Jones

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Apr 25, 2016 9:00:00 AM

How_Does_a_PEO_Arrangement_Work.jpgThere’s been a great deal of discussions lately on the topic of PEOs (or, professional employer organizations) and all the benefits they can extoll. Apart from just being experts in all things payroll and human resources, they're also legal experts and can even act as employers of record for companies looking to expand across the border. Even so, you need to know specifics when it comes to the actual process itself and how it works when you're thinking of partnering. How does it work? What exactly does it include? Is the process as easy as it seems? That's something we aim to clear up now.

What Is Included?

It's important to keep in mind exactly what a PEO can provide for you. It's not just a matter of handling payroll and managing human resources. They can also take legal responsibility for your workers and subcontract them to you to help you avoid the hassle of registration overseas. This co-employment situation takes a great deal of the pressure off of working through complex and tedious paperwork in a new country.

You'll not only be gaining access to experts in the field, but their tools as well—this means technology like integrated HR systems and payroll software, making it easier to manage even the most intricate of tasks. Because they work for various businesses, you'll be getting more buying power when it comes to employee benefits, with the benefits themselves being more comprehensive. You'll be able to know with confidence that the people handling your work are constantly being trained so they remain up-to-date on everything—the newest and most obscure laws, the best technology, the most efficient methods, and more.

The Details

So down to the bottom line: how does it work? Well, there are many options. Generally, when you first partner with a PEO, you'll be establishing some things between you—rates of pay, vacation and holiday policies, pay schedules and other things of that variety. This can all be negotiated based on your preferences and will be double-checked by the PEO to ensure everything is correct before they proceed.

A PEO will help you get set up and stay in communication during the entire process, ensuring that everything meets your standards and needs. This means providing in house training and making sure the tools are well understood by anyone responsible for those duties.

When that's over, your first payroll goes out and will be under heavy review to make sure everything is exactly how it's meant to be. This means ensuring compliance across more than 190 different regulatory legislative requirements across Canada, catching costly mistakes (billed for 400 hours, rather than 40) and making sure all parties involved understand the full process. Since everything will be dramatically simplified on your behalf, it's no trouble to add expenses or commissions, track vacations and sick days with ease, access histories, ROE's, T4's and a lot more, all of which reduces the incredible amount of time payroll can take up. If ever anything becomes confusing or difficult, you can rely on a strong customer support team (no robots or electronic phone calls) to help you out whenever you need it. Finally, you'll be billed for each pay cycle on a single invoice that details everything done so you're always in the loop. Given how simple the process truly is, and how much time and money it can save, it's no wonder that so many businesses have made the switch.

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Topics: PEO

Why You Need a Canadian PEO to Expand Your Business into Canada

Posted by Ray Gonder

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Mar 2, 2016 9:00:00 AM

Why_You_Need_a_Canadian_PEO_to_Expand_Your_Business_into_Canada-1.jpgIt's 2016 – a new year for us both personally and professionally and now's the time a lot of companies have decided to take the leap and expand their business into Canada. And why not? Canada is a land full of resources, with a strong foundation and intelligent, skilled workers abound. Culturally, it's diverse but also familiar, and the citizens make up a massively untapped market, ripe with opportunity.

That said, there seems to be something stopping more companies from taking the leap and it's no wonder that it often comes down to bureaucracy. Expansion is difficult, there's no doubt, but the rewards often outweigh the gain – and as for that difficulty? That's where a Canadian PEO comes in.

1. Expedite Registration

No doubt the most difficult and anxiety-producing aspect of expanding a business is having to establish yourself in a new country. Even in the case of Canada, where laws seem familiar, you need to create an administrative presence, which amounts to registering for a business number, buying all appropriate insurance, hiring foreign employees from the area (and that comes with complications of its own, as you'll see below), and more. For many business owners who have already done this in their own country, it can seem like an irritating step and one they'd like to avoid if at all possible. Luckily, it is possible.

When you partner with a Canadian PEO, you can skip that step altogether. A PEO is already well established in their country, already registered, and already insured. They have a full tax setup and as a recognized and official company, can hire whichever employees they want. This means you can simply use them as a go-between. Work with a PEO that will hire employees on your behalf and you can skip those steps and get the benefit of their vast experience in all things payroll, human resources, and law.

2. Expert Payroll Processing

Speaking of payroll expertise, I'm sure we're all well aware of just how much time and energy payroll can take up. That only becomes more complicated when you're paying employees from another country, even one you're expanding into. There's a question of what currency to pay them in, following the various labour laws related to pay cheques, managing deductions for government services you're not familiar with, and holiday pay for holidays you might not have even heard of. A Canadian PEO is first and foremost a payroll expert and it shows in the quality of their work. Not only do they act as the legal employer of your workers, but they also handle all payroll and human resources related duties as well. This means you don't have to worry about handling any of the payroll, just paying a flat fee to your PEO to ensure it all gets done.

3. Thorough Legal Compliance

Legal intricacies dog just about every aspect of a business expansion, from registration to hiring to payroll and human resources – that's why so many businesses in the past have hired expensive lawyers to help them navigate those rocky waters. Perhaps the most valuable aspect of a Canadian PEO is their legal expertise. For those hoping to spend more time worrying about their operations and less time worrying about nuances in the law, this is where a PEO really shines.

A Canadian PEO is not just well trained, but also familiar with just about every imaginable scenario – from the common situations to the rare and complicated ones – and can ensure you're fully protected in any case. You can keep yourself fully compliant without having to navigate thousands of new laws and regulations and ensure that your company, your employees and you are all treated fairly. When you have so much else to worry about, any concern that can be taken off your plate is welcome, so consider consulting with a Canadian PEO before you go ahead with your expansion.

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Topics: PEO, Expanding Business into Canada

What Is a PEO and How Can Your Business Benefit?

Posted by Stacey Jones

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Feb 29, 2016 9:00:00 AM

What_Is_a_PEO_and_How_Can_Your_Business_Benefit.jpgSimply put, a PEO is a professional employer organization – a company tasked with aiding other companies in day-to-day tasks that can otherwise cost a great deal of money or time. They have myriad talents and for that reason, more companies than ever have been partnering with PEOs in order to simplify their daily processes and be able to focus more on their businesses.

Naturally, there are still some people in the dark about all the ways a professional employer organization can benefit them and they have a lot of good questions about the specifics. Here are just a few things that a PEO can do for you.

1. More Efficient Payroll

By far, payroll (and human resources, but we'll get to that) is one of the most strenuous areas of doing business. Small businesses and start-ups rarely have the resources to dedicate to comprehensive payroll, while growing businesses discover just how complicated payroll can be. That's where, perhaps, a PEO shines the brightest. As payroll experts, that's their specialty and for a lower cost than several full-time employees, their team can step in and simplify the process for you.

Consider all the deductions a regular pay cheque requires, the timing and the legal compliance on top of it. Garnishments and taxes, credits and vacation pay – there's so much to worry about and it can be an overwhelming ordeal, especially since you'll have to do it again within the month. Consider finding out just how efficient a PEO can make your payroll processing, and no doubt you'll enjoy the extra time and money.

2. Smoother HR

Because it's difficult to separate human resources and payroll from one another, this is another task that PEOs are specifically specialized in. For many companies, those departments are linked directly, so while you're at it, consider how a PEO can vastly smooth out human resources on your behalf.

By dealing with experts, you're making a pointed decision to minimize your risk overall – as with payroll, human resources is steeped in complication and it's a good idea to have the same people managing both (so the left hand knows what the right is doing, so to speak). This already simplifies the process, but it can be further simplified when you consider how a PEO can minimize costs associated with recruitment and layoffs, contract and union negotiations, and a great deal more.

3. Legal Compliance

All things in the end come down to legal compliance, perhaps one of the more dreaded aspects of business. Even a small, unintentional error on a standard tax form or pay cheque can open a company up to serious fines, penalties, liability, and more, which is why many companies end up putting a lot of money into legal experts – money they may not necessarily be able to afford.

PEOs are dramatically well-rounded and even while the team works on your payroll and human resources, they're doing it all with a legal mind. For the cost of one service, you're getting what amounts to a full legal team, dedicated solely to your compliance. This means the filing of your business’s annual taxes, relevant deductions on pay cheques, compliance with human rights and employment and labour regulations. Not to mention that, but you're also getting the benefit of a team that stays constantly up to date, always training with new technology, familiarizing themselves with new laws and more – all for your protection and peace of mind.

4. Less Waste

In the end, all of these things amount to less waste. You don't have to worry about pay cheques anymore, or human resources – your legal compliance is being taken care of and all for a single flat fee. This by far trumps the cost of having a department to handle HR and payroll, not to mention a legal team and leaves those workers able to focus more on the important things, like your operations. 

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

Topics: PEO

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