There are many benefits to working with a professional employer organization (PEO) in Canada. You may have heard of some of these advantages already. One question you may have had is whether or not your business can benefit from using a PEO in Canada.
Working with a PEO is beneficial for many companies, but it isn’t always the right choice. Some companies will find their relationship with a Canadian PEO much more advantageous than others do. One thing is clear, however, and that’s many companies can and do benefit from working with Canadian PEOs.
What Is a PEO?
If you haven’t heard the term before, it’s best to start with a quick overview of what a professional employer organization does. A PEO works with your company to manage most aspects of your human resources in Canada. They’ll work closely with you to hire, dismiss, and manage employees.
The PEO may also be responsible for payroll, vacation pay, scheduling, leave management, and benefits administration for your employees. They’ll also assist with compliance monitoring. You’ll still retain control over internal policies pertaining to how your employees are treated, and the PEO works in partnership with you.
What Are the Benefits?
As mentioned, working with a PEO in Canada can have many benefits for businesses. They include better compliance, improved management of human capital, and better management of your payroll and associated taxes.
Essentially, working with a Canadian PEO reduces the amount of risk a business takes on and simplifies the process of employing Canadian workers. This kind of partnership can also save you time and reduce the costs associated with hiring and managing a Canadian workforce.
Who Can Benefit?
The next question you have, once you’ve reviewed what a PEO does and the benefits of working with one, is who can benefit from working with a PEO in Canada? It’s a legitimate question for any business owner or HR manager to ask. After all, working with a PEO isn’t necessarily the right move for any given business.
Many firms do benefit from working with Canadian PEOs. While some Canadian businesses benefit from working with a PEO in Canada, the companies that benefit the most are usually foreign firms with Canadian operations. Those businesses that are new to Canada, with relatively little experience and knowledge of the Canadian employment and payroll regime, stand to benefit most from this partnership.
Why Is It So Beneficial?
While Canadian companies can and do benefit from working with PEOs, they have a distinct advantage over their foreign competitors. They know the lay of the land when it comes to hiring and managing employees in Canada. While they still need to ensure they’re in compliance with the law and they’ll need to monitor changes, Canadian HR professionals tend to have better working knowledge of the system.
Working with a Canadian PEO is one way for international companies to gain access to that kind of expertise. While the HR professionals on staff at an American or British firm are talented and knowledgeable people, they likely don’t know employment legislation in Canada inside out.
This can lead to problems in compliance with employment legislation or trouble administering payroll. The payroll staff of a UK firm, for example, may not know which benefits the Canada Revenue Agency considers taxable. As a result, they may miscalculate the amount of tax your business owes. The CRA may reassess you and hand out a penalty. They might even decide to audit your business, a costly and time-consuming process.
Get the Expertise You Need
It should be clear why international companies stand to benefit from their relationship with a PEO in Canada. Getting the expertise you need to manage your Canadian workforce well is never a mistake. Talk to a PEO today and discover what they can do for you and your business.