US firms often look to engage a Canadian professional employer when they are expanding their workforce into Canada. When US firms outsource their HR and payroll needs in Canada, they can guarantee that they’re always compliant to Canadian laws from both an employment standards and taxation perspective.
Specifically, there are five things US firms look for from a Canadian professional employer when employing Canadians.
1. Employer of Record
A Canadian professional employer can be a great asset for US firms that are expanding across the border. When employing and paying Canadian workers, US companies must have an administrative address established, sign up with the CRA, and maintain the proper accounts with the payroll authorities. This takes a lot of effort and knowledge, so US firms often look to a Canadian professional employer to become their Employer of Record (EOR), which means that the US company’s employees become the employees of the Employer of Record, and thus, much of the administrative headaches are placed on the EOR instead. This leaves the US company with far more time to focus on more important business responsibilities.
2. HR Services
Learning a whole new set of HR rules and regulations can be very time consuming and can cause undue stress on a cross border expansion. For example, it is common place to have a potential new employee in the U.S. drug tested but in Canada this practice is absolutely forbidden. A misstep such as this could a new Canadian venture with a human rights claim right off the bat. Leave the HR regulations and responsibility with the experts in Canada. A Canadian professional employer will take care of employee onboarding, contract negotiations, benefits packages and are also right beside you if the employment needs to end, ensuring all goes smoothly.
3. Health and Safety Compliance
Labour and health and safety laws in Canada are rigorous, often complicated, and constantly changing. It can be hard to keep up with the updates in order to stay compliant. Non-compliance can lead to big fines. A Canadian professional employer will have experts on staff to ensure compliance on behalf of US firms. They partner with the appropriate safety boards across the country to make sure Canadian employees are working safely and within the appropriate laws.
A Canadian professional employer will have a comprehensive insurance package that will cover you and your employees from such things as theft, errors and general liability so you don’t have to extend your insurance portfolio across the border. They are also already registered with the applicable provincial worker’s compensation board, because in Canada worker’s compensation is a government run program, and take care of the calculation and filing of this government tax.
5. Payroll Services
Complying with Canadian taxes can be time consuming and complex. Both federal and provincial taxes must be taken into account, as well as the classification of all employees. Plus, the Employment Standards Act and payroll legislation must be taken into consideration to ensure government standards are met when it comes to paying your employees. You’ll also have to consider benefits, pensions, T4’s and ROEs, and you’ll need to provide the various federal and provincial government remittances in a timely manner. But when you engage a Canadian professional employer, all of this is handled for you, so you can breathe easy and not worry about making any errors.
A Great Benefit
US firms can greatly benefit from Canadian professional employers when expanding their business operations across the border. They will become the employer of record, take care of HR services, ensure health and safety compliance, protect you with insurance, and handle all payroll services.