If you’re expanding to the Great White North, you probably have plenty of questions. While the Canadian market may seem similar at first glance, there are many subtle differences. You’ll need to ask about everything from business structure to which local markets are best for you to enter.

Another concern you probably have is payroll. Keeping track of the American rules and ensuring payroll is finished correctly and on-time each pay period can be a challenge. You might be wondering how your team will handle having Canadian payroll in the mix.

It could be time to team up with someone to handle payroll. Is a professional employer organization (PEO) the right choice?

What Does a PEO Do?

If you’re looking for someone to handle your payroll, you might not have thought of a PEO as a partner option before. After all, working with a PEO usually means entering a co-employment arrangement, where the PEO shares risk and responsibility with you.

As a result of this situation, though, most PEOs provide expert payroll teams who can support you in paying your Canadian employees. The PEO may have a wide range of services you could choose from. While you might be looking for help with payroll right now, those other services could be helpful as you continue to grow and expand into the Canadian market.

Why Pick a PEO for Payroll?

You probably didn’t consider a PEO as your first choice for a payroll partner. There are many other organization types that offer payroll. In fact, some companies provide payroll and nothing more.

That’s one reason to consider a PEO as your preferred provider for payroll services. They can assist with compliance management, employee training and development, and more. In some cases, they might even be able to provide access to infrastructure such as banking or workers’ compensation insurance.

As mentioned, this is an important consideration for business owners. You may feel you need payroll services alone right now, but what about the future?

Simply put, a PEO is in the best position to grow with you. As your company continues to expand, the PEO can keep up, expanding their service offerings to help you manage almost any aspect of HR in your company.

What about Pricing?

One of the reasons you may not want to partner with a PEO right now is because you only need payroll services. Why pay for services you’re not going to use?

In many cases, partnering with the PEO right off the bat is the more economical choice. You might not need to purchase every single service the PEO offers right away, but the option is always open to you.

This saves more money in the long run, since you won’t need to spend time researching and hiring multiple partner providers for different services as you expand. You also don’t need to spend time switching providers when you outgrow your current payroll partner.

Can You Handle Payroll on Your Own?

Many HR managers and payroll professionals are leery about sending payroll administration to an outside provider. Business leaders often feel their team can handle payroll on their own.

There are risks in this approach. Although you could choose to handle payroll in-house, your team may not be equipped to handle Canadian payroll. They might be unfamiliar with the rules, which could lead to mistakes, penalties, and audits.

They may also not have the time to spend learning about Canadian payroll rules or managing compliance. Hiring a payroll provider can put these concerns to rest.

Is It Time to Hire a PEO?

If your payroll team is overwhelmed or unsure of Canadian payroll, it’s time to consider hiring a PEO to handle the task. With the right partners, you can be sure your payroll will be completed correctly and on time.