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What Is the Purpose of a PEO Arrangement?

Posted by Stacey Duggan

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May 20, 2016 9:00:00 AM

What_Is_the_Purpose_of_a_PEO_Arrangement.jpgMany businesses, both large and small, have considered engaging a PEO. The thing is, the term itself feels vague to people who don't really know much about it—what is a PEO? What do they do? How can they benefit a company and its employees? These are all good questions and ones we aim to answer. Let's find out more about the purpose of a PEO arrangement.

Simplify Necessary Processes

Some things in business are unavoidable; there will be never be a company that doesn't have to worry about worker classification compliance, for example. Very few businesses can get away with filing payroll improperly or having lax processes for human resources. That's why so many businesses have begun turning to PEOs. In essence, PEOs (or professional employer organizations) are organizations that specialize in managing things like payroll, human resources, and taxes on behalf of other companies. Businesses have begun outsourcing these various processes to professionals, with a great deal of success.

For some, they find the convenience of being able to stop worrying about conducting payroll on their own, which is a great boon to their overall operations. For others, they simply don't have the resources to manage complicated administrative activities in-house, and when they outsource it, they get the benefit of a whole team's worth of skill and expertise. Many growing businesses (or businesses looking to expand) make use of a PEO arrangement in order to help them move into new areas of business, while avoiding many of the obstacles that come with it (like business registration, insurance and banking infrastructure, and so on).

A PEO arrangement is a great way for a business, regardless of its size or stature, to make sure that their necessities are taken care of without the worry or hassle.

Focus On Your Core Operations

Payroll and human resources on their own are inherently complicated—the amount of time, energy, and money that goes into them is staggering and can often be one of the largest non-core business expenses (for some, it's even larger than core expenses). It's for that reason that PEOs have become increasingly popular. Companies are beginning to recognize the benefits of outsourcing peripheral tasks, especially those that are so resource-intensive, and find that it leaves them with more time to focus on the most important things, like sales, marketing, and others.

For example, if you're in the business of selling a product and trying to grow your brand, the last thing you want to do is spend half your time and money processing things that don't help to further that goal. You want to be able to push the most important aspects of your business, but you don't want to sacrifice the quality of your payroll—after all, mistakes in payroll can lead to hefty fines and even open you up to lawsuits. It's for these reasons (and more) that businesses are turning to PEOs and engaging in PEO arrangements. For a flat fee, agreed upon in advance, you can have your payroll and human resources taken care of off-site. Your business still has final say and oversight on all things, meaning you don't lose any control, but you do gain a great deal of time. By being able to allocate your resources in a more effective way, you can start concentrating on the things that are most important to you and your bottom line.

7 Signs It's Time to Outsource Payroll

Topics: PEO Services

7 PEO Services That Actually Add Value

Posted by Stacey Duggan

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Sep 4, 2015 9:00:00 AM

7_PEO_Services_That_Actually_Add_ValueProfessional employer organizations (PEOs) take on the role of employer and provide workforce management services to Canadian firms and foreign companies. These organizations provide services that add value, reduce costs, streamline operations, increase efficiencies, and reduce risks.

Companies that outsource their workforce needs and receive PEO services are better able to focus on their core business activities, their growth, their strategic planning, and their direction. They are no longer distracted by personnel functions or human resources issues, so they can get back to what matters.

These seven PEO services, in particular, can be highly valuable to business owners.

Payroll Processing

As your business grows, so do your payroll needs. The more employees you have on staff, the more complex and time consuming your payroll processing becomes. It can be difficult to ensure accuracy and compliance when processing payroll in house, and the time commitment it takes to do so every pay period can result in a lot of wasted time that could be better spent elsewhere.

Payroll is one of the most valuable PEO services you could receive. Outsourcing this task to a professional employer organization can significantly reduce your risk of CRA audits, fines, and penalties, while ensuring that your employees are always paid promptly and accurately.

Employee Relations

There are thousands of employment laws in Canada that your company is expected to adhere to. From hiring and firing to disciplinary misconducts and lay-offs, your organization must stay compliant with the labour regulations of the country. A professional employer organization can provide ongoing HR support for employee relations, provide guidance to ensure compliance, and provide expertise when dealing with sensitive employment issues. Your PEO will create or revise your HR policies and procedures, create employee handbooks and orientation sessions, and write employee agreements and contracts for you, among many other HR functions. 

Employee Training and Development

Ensuring that your employees are properly trained for the job at hand can significantly reduce your risk of lawsuits, workplace accidents, and fines and penalties. One of the valuable PEO services you can receive is employee training and development. Your professional employer organization can create and implement training and development programs for emergency preparedness, health and safety, workplace violence and harassment, WHMIS, AODA, workplace inspections, slips, trips, and falls, hazard identification, and more. This will allow you to keep your employees safe while on the job and protect your organization at the same time.

Claims Management

Handling claims management, when it comes to Workers’ Compensation meetings, appeals, and mediations, conducting workplace accident investigations, and investigating human rights and MOL claims can be incredibly time consuming and risky if you are not well versed in compliance. Your PEO can act as your delegate and manage all employment claims and investigations on your behalf.

Access to Cloud-Based Payroll and HR Systems

When you take advantage of PEO services, you’ll have access to state-of-the-art technology that allows for quick, simple, and safe payroll and HR administration. You’ll be able to view and download reports, enter in new employees, manage files, access invoices and be able to do myriad other functions from anywhere, anytime, on a secure cloud-based system.

Easily Expand into Canada without Red Tape

If you own a foreign business and want to operate in Canada, you’ll have to jump through many hurdles just to get your company registered. You’ll have to establish an administrative presence, register and maintain the necessary accounts, and establish the appropriate insurance and banking infrastructure. Your PEO can eliminate the need for many of these tasks.

Offer Comprehensive Benefits Packages with Increased Buying Power

Benefits packages can be a huge expense for employers. With a PEO, you’ll be able to leverage group-buying power with benefits providers to be able to offer your employees comprehensive benefits packages at a lower price. This will enable you to attract and retain top talent and gain a competitive advantage.

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

Topics: PEO Services

How to Find the Best PEO Service Provider in Canada

Posted by Ray Gonder

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Mar 20, 2015 9:00:00 AM

How-to-Find-the-Best-PEO-Service-Provider-in-CanadaUsing an employer of record, or PEO service provider, in Canada to handle your employee management processes can be a great choice if you’re unfamiliar with Canadian legislature, don’t want to go through the administrative hurdles of creating a presence in the country right now, or simply don’t have the time to deal with employee management.

However, to find the best PEO service provider in Canada, it’s strongly recommended that you perform some research beforehand. Each PEO service provider will have different sets of offerings, service fees, strengths and weaknesses, customer service levels, and safeguards in place. Choosing the right PEO service provider is important to ensuring you maximize on your investment and get your unique business needs met.

To help you on your search, here are some tips on finding the best PEO service provider in Canada.

Legal Compliance

Does the PEO youre looking at engaging know the ins and outs of employment laws, health and safety laws, and payroll laws in Canada? This skill is vital. If the PEO you choose isn’t well-versed in legal compliance and doesn’t know every single law that will apply to your company and your Canadian workers, you’re going to risk your company’s reputation and you can get hit hard with penalties, fines, and even jail time for breaking labour laws. When looking for a PEO in Canada, make sure the one you choose has legal experts on hand so you can ensure that you’re always in compliance.

Reputation

If the PEO you choose doesn’t have a solid reputation in the industry and is on the government’s bad side for incorrect filings or missed deadlines, you’re going to run into some problems. Government officials prefer to work with PEOs that have the knowledge, skills, and experience required to maintain accounts, file remittances on time, and provide accurate information. It makes their job easier when the process goes off without a hitch, so they’ll look more favourably upon your company if you choose the right PEO. 

HR Services

Not every PEO will offer the same types of services, but choosing one that will take over the responsibility for all of your HR services can be greatly beneficial. The list of human resources rules and regulations is incredibly long, it’s always changing, and it’s hard to keep up with. If your PEO isn’t an expert in HR or doesn’t offer this service, you could be making costly mistakes that can lead to human rights claims that can severely damage your reputation.

Insurance

You’re going to need some insurance for your workers across the border. If you don’t want to handle this yourself, look for a PEO that offers a comprehensive insurance package that can cover you and your employees if anything goes wrong, such as errors or theft.

Payroll Services

Paying your Canadian workers may seem simple, but learning and complying with the tax legislature across the border can actually be quite complex. When choosing a PEO in Canada, make sure you get one that has payroll experts on staff, so you can rest assured that your employees are paid correctly and on time every pay period. Any error in payroll can cost you and cause a lot of headaches, so don’t risk it.

Reap the Rewards of a PEO Service Provider

Whether you’re just across the border or across the ocean, you could benefit from the services and help offered from a PEO service provider in Canada. Your PEO will take care of all of your time-consuming and cumbersome administrative tasks, so you can dedicate your time to your business’s expansion.

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

Topics: PEO, PEO Services

Employer of Record Service: Your American Business Presence in Canada

Posted by Ray Gonder

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Mar 26, 2014 10:21:00 AM

American Business Expansion into Canada and when you should contact the Payroll Edge for our Employer of Record Services Great! Your expanding operations north of the border but with your American business expansion into Canada you wonder; How am I going to pay my Canadian employees?

Unless you are using an Employer of Record Service in Canada (similar to a PEO in the U.S.) and want to hire an employee you must register your business with the Canadian government. Federally registering is the first step and then registering a business presence in each province and / or territory (Canada has 13) you are operating in would be the next step. Of course this process can be even more complicated if you are a Limited Liability Company (LLC) in the US as Canada has no similar status and again has different rules depending on the province or territory.

Other Government Accounts U.S. based companies will need to pay Canadian Employees;

Registering your business is not the only registration you will do as a new business in Canada. You must also apply for a payroll tax account number into which you will remit the employer and employee taxes for the Canada Pension Plan and Employment Insurance.

These two taxes are in every province and territory across Canada with the difference being that each province has its own rate in which these taxes are calculated. Keep an eye on the rates as they often change for each province at the beginning of each year and its important to know when paying a Canadian. Some provinces have other payroll taxes such as the Employer Health Tax in Ontario and the Health Services Fund in Quebec so it’s important to know what other type of taxes are associated with the province the work is being done in. It’s worthy to note that as a company in Canada, you will be given a weekly, semi-monthly, monthly or quarterly deadline for these payroll taxes but for those provinces that have extra taxes (like the 4 provinces that have a health care tax) your deadlines might be on a different schedule. The Canadian Government will not hesitate to apply interest and penalties to slow paying accounts.

The best advice an American company should take when hiring workers in Canada is to use a Canadian Based Employer of Record service. Using an EOR like The Payroll Edge enables U.S. based companies to focus on their core business rather than learning a whole new payroll entity. Contact The Payroll Edge today! 

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

Topics: Payroll Tax in Canada, Payroll Tips, EOR, Employer of Record, Payroll Tax Tips, U.S. Business operating in Canada, Paying a Canadian, Canadian Employer of Record, American PEO, Payroll Tax Laws in Canada, American Business in Canada, Canadian-Based EOR, Canadian EOR, PEO Services, Canadian Payroll Services

Where to Find PEO Services in Canada

Posted by Stacey Duggan

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Dec 24, 2013 9:00:00 AM

Where to Find PEO Services in Canada3In the States, businesses that are looking to ease their workforce administrative burden often turn to Professional Employer Organizations (PEOs) for help. PEO services cover everything from calculating payroll and issuing checks, to handling tax remittances and workplace safety compliance. Using PEO services, businesses are able to turn burdensome administrative tasks over to trained, experienced professionals. This allows the business to better focus their efforts on their core business objectives. If you’re looking for PEO services in the US, a simple Google search or old-fashioned telephone directory will point you in the right direction.

But what if you’re a US business looking to hire someone in Canada? In Canada, you’ll find the same services under a different name. Canadians use the term Employer of Record (EOR) to provide the services you would get from a PEO in the States.

A Rose by Any Other Name

In Canada, an EOR may use a variety of names to describe itself. Businesses providing EOR services may be payroll service providers, tax service providers, staffing agencies, and many others. Though they go by different names, EOR services are quite similar as PEO services in the states. Payroll and personnel administration is difficult enough for businesses with workers in a single country. Once you add in the complexities of managing a second, foreign payroll department, it can quickly become overwhelming. An EOR eliminates the need for a second payroll system, helping US businesses hire workers across the border as quickly as possible. For US businesses trying to expand their service reach across the border, these companies provide a vital service.

One-Stop Compliance

Without the services of an EOR, US businesses would have to establish government accounts, banking, insurance, payroll, and more according to federal and provincial law before a single employee could be hired. This process could take months, cost thousands, and the potential for mistakes is enormous. An EOR makes hiring north of the border seamless as they act as the employer in the eyes of the Canadian government. This mitigates the risks and ensures compliance when it comes to the rules and regulations in Canada. So when you’re ready to hire, you can.

Cross-Border Complexity

PEO services are incredibly popular in the US due to the difficulty of managing payroll on your own. Now, imagine trying to handle payroll laws in two different countries on your own. The complexities multiply exponentially. Keeping up with everything from Canadian payroll deductions to requirements for workplace signage can quickly exhaust the resources of a new expansion. Any mistakes, on either side of the border, could end up costing a fortune. Fortunately, EOR and PEO services make it easy to handle payroll administration with minimal difficulty, and minimal risk of errors.

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

Topics: Payroll Service Provider, Outsourced Payroll Service, Canadian Payroll, Canadian Payroll Deductions, Canadian Payroll Regulations, Payroll Service, EOR, PEO, Professional Employer Organizations, CRA Payroll Tax, Canadian Employer of Record, Full Service Payroll Provider, PEO Services

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