Home Blog

Blog

If You Have Canadian Employees, You Needa Canadian PEO

Posted by Ray Gonder

|

Mar 8, 2017 9:00:00 AM

If-You-Have-Canadian-Employees,-You-Needa-Canadian-PEO.jpgDespite the fact that the U.S. and Canada are two separate countries, our lines of business cross borders frequently. So much so that our neighbours in the south hire employees in Canada to help out. Employers in the States have to stay up to date and compliant with the regulations regarding their Canadian employees. 

When it comes to employment and payroll compliance, employment and labour relations could not be more different between the two countries. Consider working with a Canadian PEO to make sure you’ve covered your bases with your out-of-country employees.

What Is a PEO?

 

Download our free guide on what US companies need to know about paying  employees in Canada.

Professional employer organizations, or PEOs, are called upon to help non-Canadian businesses with specific company tasks in Canada. They work on a variety of matters: compliance, payroll, and human resources, and their expertise is both a money and time saver. 

When you hire Canadian employees, you need to know the applicable employment laws, how the pension plans work, what types of benefits they can receive, and how to process payroll.All of these matters ensure you’re paying staff correctly. Working with a Canadian PEO helps minimize the risk of incorrect reporting because their experts are compliant and knowledgeable about business guidelines in this territory. 

PEOs already have the infrastructure and accounts in place to help manage your employees up north. The established presence of a Canadian PEO can get you started faster than embarking on thisactivity alone.

Handling Human Resources

HR management is tied to the payroll department. This friendly side of business takes care of employee benefits, workers’ compensation plans, employee relations, and various training and mentoring programs. It’s a lot of work for a firm that doesn’t have the time to thoroughly read through it.Here’s where you’ll benefit from knowledgeable PEOs. 

Whether it’s an employee dispute that needs resolving, or standard performance reviews that need to be conducted, a PEO has the competence to deal with this properly. It can also provide your company with better access to health and safety benefits, employee retirement plans, and technology. 

A PEO will assure you and your company are in line with the province’s employment act and HR standards. It’ll act accordingly if any issues arise, whether it’s generating employee handbooks or dealing with a work complaint. A PEO has you covered, as it understands the rules at both the federal and provincial level, ensuring your employees in Canada are treated as they should be. 

You already went through the hassle ofinterpreting these standards in your own territory, so why go through it again? Startat square one in Canada with the help of trained professionals.

Tackling Payroll Compliance

Compliance is crucial for managing payroll. You need to make sure you’re paying your employees correctly to avoid penalties and audits by the CRA. Are you familiar with the provincial minimum wage? Have you accounted for the correct stat holiday pay? A Canadian PEO knows how Canadian payroll works, saving you the time and headache of figuring it out and preventing shoddy inaccuracies.

A PEOtakes care of tax filing and remittances, deductions, income statements, and other company reports.All need to be calculated properly for accurate reporting of your Canadian employees. You have to account for pension contributions, unemployment insurance contributions, and workplace accident insurance premiums. There’s also various tax deductions to include: Canada’s Pension Plan, Employment Insurance, and personal income. These are required to verify employee reporting and for accuratefiling and submission by employers.

For a fee, Canadian PEOs will relieve your company of these responsibilities, guaranteeing your company is in the clear. They work to reduce the chance of your business submitting documents with mistakes and make sure your firm meets all the required obligations.

What US Companies Need to Know about Paying Employees in Canada

Topics: Professional Employer Organization

3 Things to Know about PEO Companies in Canada

Posted by Corinne Camara

|

Feb 27, 2017 9:00:00 AM

3-Things-to-Know-about-PEO-Companies-in-Canada.jpgA professional employer organization (PEO) is a secret weapon that many business owners use to simplify the management of employees and all that comes with it. When your business partners with a PEO, you get the help of professionals committed to helping you handle hiring, retaining, and paying employees. 

For US companies that are looking to employ Canadian workers, PEO companies offer a serious advantage. Your business gets the help it needs to navigate cross-border differences and you have someone on your side who knows the basics of Canadian payroll, the rules about minimum wage, maternity leave, compensation packages, vacation time, and all the other details of payroll. 

Download our free guide on what US companies need to know about paying  employees in Canada.

With so much to know about payroll, it’s a good thing that PEO companies exist to support your business. Here are three things to know about PEO companies in Canada.

1. PEO Services

So what exactly does a PEO do? Well, it depends on the PEO company and your business needs, but PEOs typically take care of the administrative, HR, and payroll dirty work. PEO companies in Canada can help take care of administrative duties, such as on boarding new employees, maintaining the payroll database, legal compliance, taxes, paystubs, training, and more. 

In addition to the payroll services you get with a PEO, you also get access to professionals that are knowledgeable about hiring and payroll practices in Canada. While you might not have the time or resources to train a member of your team in Canadian taxes or employment standards, you’ll have someone at your disposal that knows the ins and outs of Canadian business best practices.

2. PEOs Help with Business Expansion

For businesses that are on the rise, important administrative tasks can feel arduous. Filling out paperwork and staying on top of the latest changes in legislation can eat up a lot of time and resources that could otherwise be put towards business development and expansion. 

PEO companies in Canada can help US businesses expand into new territories. You don’t have to be making international moves to benefit from a PEO—just having the resources to handle laws and compliances means that you can focus on other tasks while making sure the steps you’re taking to grow your business adhere to legal codes every step of the way.

3. The Decision-Making Stays Yours

While PEO companies in Canada can make your hiring decisions easier, they don’t make those decisions on your behalf. When working with a PEO, you get a partner who is ready to take all the technical steps of hiring employees according to your hiring decisions. As an added bonus, the PEO takes the brunt of the legal responsibility when it comes to paperwork and important business decisions like employee classification.

There are some key factors to consider when looking for a PEO service in Canada, such as your business’ needs, the PEOs capacity for legal compliance, and the PEOs professional network. No matter which PEO you go with, however, you can be assured that you have final say when it comes to hiring decisions.

PEOs Summarized

So far we’re gone over three highly important things to know about PEO companies in Canada. Professional employer organizations in Canada can help your business expand by taking care of otherwise tiresome and tricky detail-based work in the field of payroll and administration.

For American companies looking to dip their toes into the candidate pool to the north, there are a few key things US companies need to know about paying employees in Canada. With a continuously growing economic landscape, there are many opportunities such as business expansion that await abroad. While Canada is a vast country with 10 provinces and three territories that all have their own sets of provincial legislation, a PEO company will help guide your business through the plethora of day-to-day details regarding employment.

What US Companies Need to Know about Paying Employees in Canada

Topics: Professional Employer Organization

A Canadian Professional Employer Organization Can Help Your Business

Posted by Ray Gonder

|

Feb 22, 2017 9:00:00 AM

A-Canadian-Professional-Employer-Organization-Can-Help-Your-Business.jpgManaging employees properly and making sure everyone gets paid on time and without discrepancy is key to employee satisfaction as well as workplace efficiency and company morale. Working with a Canadian professional employer organization (PEO) has many benefits, all of which point to overall payroll efficiency and business development support. 

In the business world, any advantage can be the tiebreaker between your company and another business similar to yours. PEO services help businesses grow by offering payroll and administrative support to free up staff from arduous busy work. 

Download our free guide on what US companies need to know about paying  employees in Canada.

Keep reading below to find out how a Canadian professional employer organization can help your business.

When Do I Need PEO Services?

The types of services offered by a Canadian professional employer organization vary depending on the company. When your business partners with a Canadian PEO, your staff is free to focus their energy on business growth and development. PEOs can take care of everything administrative such as paying employees, maintaining your payroll database, keeping financial records relating to payroll, and handling T4s, ROEs, paystubs, and employment verification. 

PEOs can offer more for your business, and are particularly helpful when it comes to staying current with legislative changes and staying on top of legal compliance. For companies that work within a variety of different federal and provincial tax systems, PEOs can make sure they play by the rules and avoid problems with the Canada Revenue Agency

PEOs can also help businesses that are growing through employee training and development, workplace inspections, and putting protocol in place in anticipation of any workplace emergency.

Legal Compliance

The Canadian professional employer organization that you partner with should be an expert when it comes to legal compliance. After all, you’ve turned to their services in order to ensure your business is up to date with legislation and the rules of taxation. Small and medium-sized companies have over 190 legislative requirements—that’s a lot for a business that’s focused on growth to handle. 

A PEO can help your business by taking care of the small stuff so your staff doesn’t have to become experts in legal compliance. 

What’s more, staying on top of changes in legal compliance is easy thanks to the help of a Canadian professional employer organization.

Canadian Business Expansion

With the help of a Canadian professional employer organization, US companies can fearlessly expand their businesses into Canada. There are plenty of things that US companies need to know about paying employees in Canada, and a PEO can help. Figuring out all the new rules of Canadian business and taxation systems will take a toll on any business, especially small to medium-sized ones. 

For a US company expanding into the Canadian marketplace, a PEO can help you easily navigate the uncertainties that come with international hiring, so you can focus simply on making the most of Canadian talent. PEOs take care of the small stuff and take full legal responsibility for paperwork and administrative tasks, leaving business owners to make the important hiring decisions without all the stress of individually handling the minutia of employment standards.

Competitive Edge

Businesses rely on competition to move forward. Motivated by the prospect of growing and staying relevant in your field, staying competitive means looking for new and innovative ways to give yourself that slight edge above your competitors. 

When you partner with a PEO, you also align yourself with its reputation. Working with a PEO that has a good relationship with provincial and federal government officials can help you in the long run. Because authorities prefer working with PEOs that are recognized and have a reputation for making everyone’s jobs easier, you’ll see yourself fly through legal processes and stay free from hassles, which can give you an edge.

What Are You Leaving to Chance by Handling Payroll on Your Own

Topics: Professional Employer Organization

5 Reasons Why Business Expansion into Canada Should Begin with a PEO

Posted by Corinne Camara

|

Jan 30, 2017 9:00:00 AM

hnjjjjm5-Reasons-Why-Business-Expansion-into-Canada-Should-Begin-with-a-PEO.jpgManaging a business is an all-encompassing task with many duties. As soon as you think about expanding your business, those tasks multiply, and new ones are created. With the help of a professional employer organization, you can accomplish these tasks easily and efficiently.

A PEO provides services foremployers to outsource employee management tasks. Using a business-to-business relationship called co-employment, they help organizations in a variety of services, from employee benefits, payroll, and human resources to risk/safety management and employee training and development. Here arefive ways one can help you expand your business in Canada.

Download our free guide on what US companies need to know about paying  employees in Canada.

1. Administration

PEOs handle the majority of steps involved with starting a new business. These seemingly tiny tasks—likeobtaining a business number and insurance, and registering accounts with the provincial and federal government—take up a large amount of time when combined. Because these third parties are already established, they have already completed several of the initial accounts and infrastructure required for business expansion, saving you time on submitting those administrative applications. They help streamline the process of establishing your business, leaving you one less thing to worry about.

2. Compliance

Law and legal matters can be tricky for anyone outside of the legal profession, and many businesses do not have the money or resources to hire, or keep, a dedicated legal team inhouse. With a PEO, there’s no need for lawyers, as they will make sure your business follows all necessary rules and regulations, and reduce any mistakes you may unknowingly make. Part of their job is to ensure your business is properlyset up in the country, following all the health and safety, workplace, and employment laws as necessary. Their trained team of experts keep up with the changing laws and regulations, and can deal with any misclassifications that may have accidentally appeared.

Legal compliance can be complex and hard to understand. Thestaff and risk-management specialists at these organizationswill ensure your company meets all check points, and that your back is covered.

3. Certified HR Expertise

Not all businesses have the resources to dedicate a full team,or even a few people, to an HR department, and staff may be unclear as to exact details involved with employment law and related matters. The knowledgeable staff in a PEO come with experience and certifications in HR, ensuring that any HR-related issues that arise in business expansion can be dealt with by their expert staff.

While starting a business only happens once, employee management never ends. PEOs are there to deal with any issues that could arise, whether providing employee manuals and policies, or maintaining a company’s solid reputation. The HR services they provide come at a better cost than implementing and managing your own in-house department.

4. Top-Notch Payroll Expertise

It’s no secret that payroll is time consuming and one of the bigger headaches of managing a business. A PEO will manage those tasks, while also making surepayroll regulations and tax laws are covered. Their team handles calculating payroll, tax deductions, and filing, as well as administrating pay and employment records, and more. If your company doesn’t have the means to manage payroll, because it’s either too costly or time consuming to conduct in house, these providershave it covered.

Instead of having a full team that takes up time and money, or a few staff on location who aren’t incredibly knowledgeable, experts employed by the PEO will handle all bookkeeping and payroll matters, leaving you with more time to focus on other aspects of your business.

5. Benefit Perks

Many small and medium businesses cannot afford the additional perks big businesses receive. Working with a PEO gives smallercompanies a chance to receive these additional offers, including better access to group healthand benefit plans, workers’ compensation, and even providing additional technology for business expansion.

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

Topics: Professional Employer Organization

Why Your US Company Should Use a PEO in Canada

Posted by Shannon Dowdall

|

Jan 23, 2017 9:00:00 AM

Why-Your-US-Company-Should-Use-a-PEO-in-Canada.jpgUS Companies may have a host of reasons for expanding into the Canadian market. Many companies, however, aren’t sure where to start. When it comes to expanding their business into Canadian soil, many companies find themselves lacking a strong foothold in the amount of work it takes to get the ball rolling with hiring the Canadian workforce. 

For businesses eagerly looking to expand their global presence, a simple venture into revenue expansion could end up taking a serious toll on their business strength and employee morale. 

Download our free guide on what US companies need to know about paying  employees in Canada.

The good news is that you can avoid grave mistakes by partnering with a professional employer organization (PEO). With the help of a PEO in Canada, your business gets expertise, legal knowledge, a strong professional infrastructure, and human resources support. Your business will benefit from making fewer mistakes. Here are some of the top reasons why your US company should use a PEO in Canada.

Expertise & Knowledge of Regulatory Agencies

There are many technicalities and administrative details that businesses expanding in Canada need to know. For American companies looking to take part in Canada’s diverse and skilled workforce, it can be time consuming to stay constantly in the loop regarding Canadian legislation and employment standards. When your company turns to a PEO in Canada to help stay on top of things, you have experts on your side who entirely understand Canadian payroll

By using a PEO in Canada, your company will gain the knowledge of employment standards, mandatory deductions, employee classification, and more for your cross-border employment. What’s more, you’ll have experts who know the details of timing and Canadian deadlines and due dates for filing taxes—dates that you might not know without being fully versed in the intricacies of Canadian regulatory agencies.

Make Expansion Easier

For companies with a lot of work to stay on top of, expanding your business into a new country can help you make the best of low corporate tax rates and new markets. In order to easily transition into registering with new departments according to federal and provincial regulation, a Canadian PEO can take the reins and guide your business through setting up bank accounts and navigating insurance policies. 

Fortunately, US companies that turn to a PEO in Canada can get help with expansion by not having to worry about the details of administration and the Canada Revenue Agency (CRA).

Avoid Serious Mistakes

Out of the many benefits of using PEO services in Canada, one of the most valuable offerings a PEO service can give your company is the peace of mind that comes with avoiding costly mistakes. When it comes to cross-border employment, mistakes can be more than just an inconvenience. Making a small mistake can do more than affect your professional appearance, as these mistakes can leave your business with huge fines, possible lawsuits, and even investigations. What’s more, mistakes that are unintentional don’t mean that your business is exempt from the consequences—mistakes made out of ignorance or misinformation can still have a serious impact on your business and cause you major headaches. 

Unintentional and intentional mistakes are often chalked up to human error. For payroll and human resource departments, being overworked or inexperienced in a new field can increase the chance of these mistakes. After all, fatigue is cited as the cause of many workplace mistakes, and for a businesslooking to expand its workforce, the extra work will likely leave staff overworked. Errors such as employee misclassification can put businesses in the bad books of the CRA. But by using a PEO in Canada, you gain the experience and expertise to keep mistakes at bay so that you can focus on business growth and development instead of avoiding errors.

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

Topics: Professional Employer Organization

Why Partner with a Canadian Professional Employer Organization?

Posted by Shannon Dowdall

|

Dec 21, 2016 9:00:00 AM

Why-Partner-with-a-Canadian-Professional-Employer-Organization.jpgEstablishing your brand in the Canadian market can be a fruitful decision. Expanding into Canada can allow your business to grow significantly and increase its profits. However, the initial process of doing so is notoriously difficult, long, and filled with bureaucracy. Furthermore, there is a lot of work that goes into hiring, managing, and paying Canadian workers. If you aren’t intimately familiar with Canadian payroll, the Employment Standards Act, and the regulations and rules that businesses must follow in the country, you could make critical errors that ruin your potential success in this market.

The process is difficult and the risks are significant. That’s why many companies partner with a Canadian professional employer organization to ensure a smooth transition, complete compliance, and improved chances of success.

Here are some of the reasons why you should consider using a Canadian professional employer organization when expanding your business into the Great White North.

A Quicker, Easier Expansion Process

In order to expand, your company must register with both federal and provincial government agencies. You must also build the required infrastructure, including getting insurance, getting bank accounts, and more. The initial process can be lengthy and complicated. You may have to jump through a lot of hoops just to be recognized as a business in Canada before you can even start hiring employees. This can slow down your expansion efforts or even grind them to a halt.

A PEO, however, will already be registered with all required government bodies. You can skip many of the initial steps and operate through the PEO instead.

Added Compliance Expertise

The Canadian laws and regulations surrounding labour, employment, and payroll are complex and nuanced. In addition, they’re constantly changing and they vary from province to province. Without legislative expertise in the Canadian market, you could end up making significant payroll mistakes or human resources mistakes that can damage your reputation and cost you in fines and penalties. You may even risk jail time.

If your knowledge of Canadian legislation is limited or non-existent, it’s ideal to work with a Canadian professional employer organization. This company will have the expertise required to ensure that your company is always compliant in its operations. Tax issues, worker misclassification, health and safety, and all other types of laws and regulations will become a breeze with a PEO on your side. There’s just no reason to try to navigate the complexities of the Canadian market and its laws on your own. A PEO can give you peace of mind and save you considerably money.

Payroll Familiarity

Canadian payroll can be complicated, to say the least. US companies seeking to hire Canadian employees must ensure that they apply Canadian rules when processing their payroll. This means deducting the proper amount of income taxes, CPP contributions, and EI premiums, sending remittances to the appropriate governing body by their deadlines, ensuring proper currency conversion, creating tax slips, and so much more.

Of course, this can be daunting when you don’t have familiarity with payroll or tax knowledge. It can also be quite time consuming to try to learn everything that there is to know about Canadian payroll before your first pay period.

A Canadian professional employer organization, however, will know all about the different tax rates, the remittance deadlines, the CPP and EI contribution exclusions and maximums, the rules for leaves, vacation days, and public holidays, and everything else required to pay Canadian workers properly. Partnering with a PEO can help ensure that you follow all payroll regulations, down to the smallest detail.

Burden of Responsibility

When you partner with a Canadian professional employer organization, you’re effectively shifting your burden of responsibility for your Canadian workers. The PEO will become the workers’ legal employer, and thus, will take on virtually all of the responsibility, roles, and risks that come with the hiring, managing, and paying those workers.

What Are You Leaving to Chance by Handling Payroll on Your Own

Topics: Professional Employer Organization

7 Tips for Choosing a PEO in Canada

Posted by Ray Gonder

|

Nov 28, 2016 9:00:00 AM

7-Tips-for-Choosing-a-PEO-in-Canada.jpgWhen it comes to choosing a PEO in Canada, many business owners wonder about how external help will integrate into daily business operations. The good news is that professional employer organizations (PEOs) don’t take over your payroll or hiring needs, but rather they offer a cost-effective measure that allows you to devote more resources to daily operations without getting caught up in legal intricacies, payroll specificities, and other tedious tasks. 

For business owners who see the benefits of working with a PEO, there are a few common questions that, fortunately, have easy answers. For example, business owners who ask: “how much control do I keep over my hiring?” will be relieved to know that PEOs simply perform basic hiring tasks, following your instructions and discretion. 

There are many excellent reasons why your company should use a PEO in Canada, including added ease dealing with regulatory agencies, saving money, and extra value like technology and HR support. Once your business has accepted the benefits of what PEOs offer, it’s time to figure out which company to work with: here are 7 tips for choosing a PEO in Canada.

1. Consider Insurance

Shopping for a PEO in Canada involves your insurance options. As a business owner, you will need insurance for your workers, and if you don’t have the time or resources to be an insurance expert, a PEO that offers a comprehensive insurance package will cover you and your employees if anything goes wrong.

2. Go by Reputation

As is the case when shopping around for anything, services or goods, you want to follow the good reputations. PEOs rely on their reputations to draw in clients who want to be confident that their PEOs haven’t had any incorrect filings or missed deadlines that draw the government’s scrutiny. Choosing a PEO in Canada with a good reputation will make your life easier when you avoid any grievances that come with missed government compliance.

3. Follow Your Instinct

Have you ever been in a shopping experience and felt pressured to make a decision? Maybe you’ve been unclear about the details of your purchase but had a pushy salesperson putting a pen in your hand. PEO services equate to a business relationship, you don’t want to partner with a service provider that is too focus on self-interest and isn’t interested in meeting your needs from the very beginning.

4. Legal Compliance

Make sure the PEO you’re looking at engaging with knows the ins and outs of employment laws, health and safety laws, and payroll laws in Canada. Your PEO must be well versed in legal compliance and, ideally, have an excellent track record with the government.

5. HR Services

Not every PEO will offer the same type of services, but if you’re interested in HR relief, choosing a PEO in Canada that will take over the responsibility for your HR services can be a huge help. The rules and regulations that come with HR services are long and continuously changing. HR expertise in a PEO will save you from making costly mistakes that would damage your own reputation.

6. Payroll Services

PEOs create a co-employment relationship between a small to midsize business and a provider of services that focuses on HR management, benefits, administration, insurance, payroll, and more. When choosing a PEO in Canada, you should pick one that has payroll experts on staff, so you can rest assured knowing your employees are paid on time and according to the relevant regulations.

7. Group Benefits

When you’re trying to find the best PEO service provider, looking at extra value and added perks can help you make the right decision. If you’re looking to make use of extra technology or to benefit from great insurance rates, getting the right PEO will give you added value to the services of a PEO in Canada.

7 Signs It's Time to Outsource Payroll

Topics: Professional Employer Organization

Everything You Need to Know about PEO Companies in Canada

Posted by Karen McMullen

|

Nov 18, 2016 9:00:00 AM

Everything-You-Need-to-Know-about-PEO-Companies-in-Canada.jpgProfessional Employer Organizations (PEOs) are businesses that focus on enabling clients to effectively outsource employer services such as HR, payroll, employee benefits, and workers’ compensation. Clients benefit from the range of competencies that PEO companies offer, allowing them to focus on business development and on growing their bottom line. 

PEO companies in Canada can offer value to any business. From average clients to large business, the robust payroll and HR solution services offered by a PEO can be a valuable contribution to any organization. PEOs can also partner with very large companies and work in conjunction with the existing HR department to boost overall efficiency and handle the intricacies of regulatory agencies. PEO companies give business owners access to the legislative and administrative expertise needed to successfully work with contingent and international workers.

How Do PEOs Help?

Dealing with regulatory agencies will be an unavoidable part of your business’s lifespan. From the day you open your doors, your business will have to deal with regulatory agencies. For businesses that enter a new country, registering with regulatory agencies is crucial to gaining a business number and establishing the legitimacy of your company before you can start operating to your full potential.  

Many different types of clients find value in a partnership with PEO companies in Canada. From high-tech companies to small manufacturers to accounting firms, different professionals and businesses can benefit from PEO HR, payroll, and benefits solutions. Here’s what you need to know about PEO companies in Canada.

The Costs

Full-time hiring and payroll staff come at a price. The services they offer are a huge help to your organization but having to pay salaries, benefits, and bonuses in order to attract top talent can take up a good portion of your budget. 

Any cunning businessperson will ask at some point if there are hidden fees hiding behind the promises of PEO companies in Canada. While some companies will operate according to the shady tactics of hidden fees and surcharges, a valuable PEO company will know that staying competitive means eliminating hidden fees.

Hiring Control

A common question business owners might ask when considering PEO companies is whether or not the PEO will take over the hiring practices. PEO companies in Canada hire staff on behalf of the client, which means business owners maintain the authority when it comes to hiring decisions. 

The hands-off approach of a PEO can be helpful especially for business owners looking to capitalize on cross-border negotiations. For instance, a U.S. company setting up in Canada will benefit from the regulatory expertise of a PEO company, letting business owners proceed with daily operations without having to deal directly with hiring hurdles.

Advantages

Even if you successfully manage to dot your I’s and cross your T’s when it comes to dealing with insurance policies and finding a banking solution, regulatory agencies like the CRA will continue to crop up every now and then. PEO companies in Canada help your business avoid the inconveniences of burdensome administration. The value of a PEO in Canada can be measured through the time savings and the peace of mind of knowing experts are behind the technicalities of the business world. 

It’s natural to have questions about PEOs in general, especially since more traditional models of in-house HR and payroll have been considered the norm for years now. The good news is that PEO companies are more cost effective in the long term than having full-time hiring and payroll staff in your organization. Because PEOs work for other clients as well and are trying to keep a competitive edge, your business benefits from great prices and great performance.

What US Companies Need to Know about Paying Employees in Canada

Topics: Professional Employer Organization

How US Companies Can Benefit from a PEO in Canada

Posted by Shannon Dowdall

|

Nov 16, 2016 9:00:00 AM

How-US-Companies-Can-Benefit-from-a-PEO-in-Canada-1.jpgAs changes to the economy keep businesses on their toes, U.S. companies are exposed to a broad range of new business opportunities, including expansion across the border. Maximizing the workforce talent from across the border is an exciting opportunity for many U.S. companies, especially because of the many similarities between the Canadian and U.S. markets. 

The opportunity for U.S. companies to develop strong working relationships with Canadian talent means that it’s more important than ever for U.S. companies to develop an understanding of the intricacies of the Canadian market. Mismanaging Canadian employees can have consequences beyond company inefficiencies: you can end up with fines, penalties, or lawsuits as a result of improper HR or payroll practices. U.S. companies can benefit from a Professional Employer Organization (PEO) in a variety of ways. A PEO in Canada can make handling administrative tasks a breeze, so that your organization can save money and get back to business.

Legislative Expertise

U.S. companies looking to match employment packages and benefits to a Canadian equivalent can quickly find themselves lost in a sea of complicated legislation and administration. For U.S. companies that partner with a PEO in Canada, navigating unknown territory doesn’t have to be a daunting task. 

PEOs come equipped with the knowledge and expertise to seamlessly expand your workforce into the fruitful Canadian market. Your company will maintain control of the workforce and authority over hiring decisions while the PEO will handle the taxation and employment standards requirements, such as health and safety for both provincial and federal legislation. 

With a PEO at the helm of the legislative, tax-related, and HR services of your company’s expansion into the Great White North, your business will gain a competitive edge over others that spend too much time and effort trying to navigate the uncertainties of the Canadian market. With clarity and peace of mind, your business will benefit from a PEO in Canada as a positive step into the direction of growth and business development.

Tax Knowledge

U.S companies that look north of the border for worker solutions must remember that Canadian workers are held accountable to a completely different set of taxes than American workers. The pay that Canadian workers receive is subject to both Canadian taxes and U.S. laws, meaning that businesses can’t afford to get these details wrong. 

Tax rates and wage statements are two important components of the Canadian tax system that U.S. companies need to know. Tax rates according to province, territory, and country fluctuate each year in Canada. Additionally, Canada has higher tax rates including taxes per province and surtaxes. Depending on the provinces, different taxes require different calculations: income tax, spending tax, goods and services tax, sales tax… for the inexperienced, it can be daunting and time consuming to keep up. U.S. companies benefit from a PEO in Canada because of the tax knowledge it can offer to businesses looking to expand their horizons.

Payroll Familiarity

Canadian payroll practices differ from those of U.S. companies. When U.S. companies seek to capitalize on the labour market in Canada, there are different rules that apply nation-wide and also by province. Even some of the basics like the change to the Canadian Dollar (CAD), the Canada Revenue Agency (CRA) instead of the International Revenue Agency (IRS), and the different end to the tax year (Dec 31) can throw off administrative staff used to working within the U.S. system.

U.S. companies can benefit from a PEO in Canada because of the payroll familiarity that comes with the organization. A PEO in Canada will be familiar with the Canadian minimum wage, national and provincial holidays, workweek calculations, paternity/maternity leave, and many more details specific to Canada. In addition to helping U. S. companies tap into the vast Canadian labour market, a PEO in Canada benefits U. S. companies by taking care of the tricky details and letting business owners focus on growing their bottom line.

What US Companies Need to Know about Paying Employees in Canada

Topics: Professional Employer Organization

How a Canadian Professional Employer Organization Can Help You

Posted by Corinne Camara

|

Nov 14, 2016 9:00:00 AM

How-a-Canadian-Professional-Employer-Organization-Can-Help-You.jpgDifferent countries require different habits. You don’t just order American cuisine when you go on overseas vacations, so why would you retain your same old business practices when your company launches operations in another country? If you want to be effective in a different market, you need to adapt your practices so that they match this new location’s unique characteristics. 

This principle doesn’t just apply to your business practices, though. Hiring and payroll techniques that seem perfectly legitimate at home are staunchly forbidden when you cross borders. Failing to understand these rules can result in stiff penalties, so you need to know how to acclimatize yourself quickly. 

If you want to set up shop in the Great White North, a Canadian professional employer organization (PEO) can make the process easy for you. This article will outline just a few of the benefits that these firms can offer your company. With this information, you’ll be able to find the service provider that best suits your unique needs.

They Don’t Just Help with Your Hiring

The term “Canadian professional employer organization” may lead you to believe that PEOs focus solely on employing your workers. That assumption isn’t entirely off base, either. When you work with a PEO, you technically hire employees through their firm for reasons that we’ll elaborate upon later. 

But if you think you’re just working with a hiring agency when you partner with one of these firms, you’re entirely mistaken. PEOs also manage your payroll responsibilities, ensuring that you’ll never have to worry about records of employment, tax remittances, exemptions, deductions,or other hassles ever again. This is also convenient because …

They’re Experts in Tax and Payroll Regulations

If you’re interviewing someone for a job and you hear that they’re an “expert in their field,” you may feel more inclined to hire them. That is, until you see the salary that these experts can command. Like any aspect of your business, managing your hiring and payroll duties means balancing your resources. This means hiring the professionals who can provide work that reaches the highest caliber, but who also fit in your budget. 

That’s why a Canadian professional employer organization is so valuable. When you work with these companies, you don’t just get a few skilled workers. Instead, you get an entire team of tax and payroll experts at your disposal for less money than it would cost to hire these workers full-time. If you’ve ever had to do work in either of these fields, you’ll know how difficult it can be to stay up on complex and ever-changing regulations. If you partner with a PEO, you’ll never have to invest that effort again.

They Enable Your International Expansion

We mentioned before that PEOs technically hire workers for your company. This can be a boon for any business that’s looking to establish a presence in a foreign country. That’s because it saves them the need to register with foreign regulatory bodies, banks, and insurance companies. When you work with a Canadian professional employer organization, you’ll be able to make the most of your precious time.

They Eliminate the Possibility of Mistakes and Late Fees

When you make a mistake in your day-to-day operations, you can usually fix things with relatively little blowback. Do the same on your tax filing and payroll, though, and you’ll face angry employees and huge fines from regulatory agencies. You can avoid this horrible fate by working with a PEO. They ensure that all of your payroll and tax documents are completed on time and without error.

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

Topics: Professional Employer Organization

Subscribe to Email Updates

Recent Posts

Posts by Topic

see all