Home Blog

Blog

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

Posted by Stacey Jones

|

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

What Are the Differences Between a PEO and a Staffing Agency?

Posted by Stacey Jones

|

Aug 1, 2019 8:00:00 AM

Any business owner or HR manager with a growing business knows that workforce expansion is necessary. This is especially true for international companies who are planning to enter new markets, as this will require a company to staff the new branch office in the new market or handle payroll and compliance for remote staff working out of country.

adult-businessman-contemporary-937481When it comes to employing people, you have a few different partnership options, which can make it difficult to know exactly which type of organization you should hire. Do you need the services of a staffing agency? Or do you require the services of a professional employer organization (PEO)?  

If you’ve ever wondered about the differences between a staffing agency and PEO, you’re not alone. Learn what sets these organizations apart and which could be right for your business.

What a Staffing Agency Does

Most people have heard of a staffing agency and they’ve been around a bit longer than PEOs. 

In the mid-20th century, agencies designed to help other companies with their staffing needs emerged in the United States. Most of the time, these agencies provided workers to a client work site on a temporary basis.

Today’s staffing agencies frequently offer additional services, and in many cases, can provide workers on a permanent basis. In fact, some staffing agencies specialize in finding and placing permanent employees, especially in certain industries where there is a high demand for specialized skill and talent.  However when you make a permanent hire through an agency, you assume responsibility for the employee and if you are not setup in that country as an employer you will not be able to compliantly payroll the worker and submit required taxes and burdens.. 

What a PEO Does

PEOs emerged in the 1980s in response to employers’ evolving needs. The 1980s and 1990s were an era marked by rapid global expansion, and many international companies found they needed more than what most temporary staffing agencies could provide.

The PEO was the solution. The PEO offers comprehensive HR services to the client employer. While some of these services overlap with some staffing agencies today, the PEO has traditionally offered payroll services, compliance monitoring, insurance, and more.  As they act as a co-employer it allows a company not set-up in country to hire staff out of country compliantly.  It also allows them to offer the worker similar offerings to their in country staff such as benefits and RRSP’s (401K). 

What’s the Difference?

While staffing agencies and PEOs do have a few services that overlap, there are at least two major differences between these two types of organization.

The first difference is key. Who will employ the workers

In the case of a temporary staffing agency, the agency supplies workers to client sites. These workers remain in the employ of the agency. The situation changes in the case of permanent employees. When you make a permanent hire through an agency, you assume responsibility for the employee and therefore would need to be set up in country to take on the employee onto your payroll.

The PEO, on the other hand, acts as a co-employer, which means they share responsibility for the employees. They’ll supply many of the HR services needed, but decisions about hiring, termination, and compensation are left up to the client employer.  If your employee is out of country the PEO will also assist with in country compliance, an important piece when hiring in a country where you are not aware of the employment laws and legislations. 

Another way to think of the difference is to think about what you’re outsourcing. Both organizations are focused on HR tasks around your workforce. With the staffing agency, you’re outsourcing your hiring process and the associated tasks, while with PEO, you’re outsourcing only the administrative tasks, payroll, and compliance associated with your workforce.

 

Finding the Services You Need

Global companies entering new markets face HR challenges from every direction. That can make it difficult to know who you should work with.

In some cases where you need assistance in finding the right candidate, it makes the most sense to work with a staffing agency. In other cases, where you already have your employee the PEO could be just what you need. There are even situations where it makes sense to call on both a permanent staffing agency and a PEO.

It ultimately comes down to knowing what services will best meet your business’s unique needs. 

Discover how the right partner can help you create a long and lasting relationship with those talented workers.

Topics: PEO Services, Outsourcing HR, Business Expansion

Should I Get a Professional Employer Organization in Canada?

Posted by Stacey Jones

|

Jul 31, 2019 9:00:00 AM

torontoYou’ve been toying with the idea of expanding your business on a more global scale, and the Great White North is your next market to explore. It makes perfect sense for almost any American firm. The US and Canada have a good trading relationship, share the world’s longest unguarded land border, and have similar cultures.

The same factors that make Canada such a great choice might also contribute to mistakes American companies make as they come north of the border. How familiar are you with Canadian payroll or the tax system? Do you know how workers’ compensation is handled in the province you want to operate in? What about the varying employment labor laws?

These questions and the others that go along with them can feel overwhelming for a company exploring the Canadian market. The solution may be to look for a helping hand. A professional employer organization could be the partner you’re looking for.

What Is a Professional Employer Organization in Canada?

First things first: what is a professional employer organization anyway?

In the United States, professional employer organizations are distinct from employers of record. The EOR is solely responsible for the people working for your business. A PEO, on the other hand, is more like a co-employer.

The professional employer organization helps you manage your Canadian employees. The PEO will provide assistance with payroll, legal compliance, and workers’ compensation.

They also offer support for health and safety and human resources, among other services.

How a PEO Helps

Many American business leaders find themselves at a loss when entering the Canadian arena. Each province and region represents its own distinctive market. Complicating the situation more is the mix of federal and provincial rules. You’ll need to be familiar with provincial employment law and CRA rules about payroll, as well as federal and provincial taxes. 

Working with a PEO in Canada can instantly clarify the situation. They’re already established in Canada, and they’ll be able to provide the services you need quickly while guaranteeing  compliance with the rules.

Better yet, the PEO lifts some of the strain from your team. If your HR team is having a difficult time sorting out Canadian federal and provincial taxes, it’s not a problem. The PEO will take care of payroll for you and help with tax forms too.

The PEO essentially makes it easier for your business to manage Canadian workers the right way.

Avoiding Costly Missteps

Errors can be costly for businesses, especially small operations. Mistakes on your tax forms or non-compliance with employment law in your province could ground your Canadian aspirations before your business has a chance to take off.

Consider that the CRA penalizes employers for late payroll remittances. If your payment is even one day late, the CRA may charge you an additional three percent. The penalties only climb from there.

Having that money in your pocket is a better plan. When you work with a PEO, they’ll help you avoid making those mistakes in the first place, so you don’t need to worry about the risks.

Keep Your Workforce Happy

Teaming up with a professional employer organization is a smart move for American business leaders looking to crack the Canadian market. Working with a PEO can help you provide the right HR services to your Canadian team.

 

In turn, they’ll likely be more content and more inclined to stick with you for the long term. In a competitive market where your people can help you stand out, that’s an enormous advantage.

If you’re thinking about expanding to Canada, get in touch with the experts and discover what a professional employer organization could do for you.

Topics: PEO Services, Canadian PEO, Canadian Payroll Provider, business expansion into Canada

Can Professional Employer Organizations Increase Employee Satisfaction?

Posted by Stacey Jones

|

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 Is the Purpose of a PEO Arrangement?

Posted by Stacey Jones

|

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 Jones

|

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

|

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

|

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 Jones

|

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

Subscribe to Email Updates

Recent Posts

sidebar-cta-12-differences-to-expect-when-expanding-into-canada

Posts by Topic

see all