Is your company thinking about expanding business into Canada? Maybe you’re already in the process of opening up shop in the Great White North. You’ve been thinking about business structures and learning more about the tax implications of each. You’re also wondering about hiring employees and paying them.
There’s much to learn for anyone expanding business into Canada. At times, it may seem overwhelming, and you may wonder if you’re doing things correctly. There is so much at risk when you open up shop in Canada, particularly if you’re unfamiliar with the legislation in the jurisdiction you’ll operate in.
There’s an easy way to simplify your Canadian expansion activities. If you’re expanding your business into Canada, consider working with an
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The EOR becomes responsible for hiring employees, training them, administering payroll and other employee benefits, and releasing employees.
The employer of record is listed as being your employees’ employer, which makes them responsible for all activity relating to the employees in the eyes of the Canada Revenue Agency (CRA). The CRA will turn to the EOR for payroll remittances and so on.
Why Work with an EOR?
The next question on your mind is likely why you’d consider working with an employer of record when expanding business into Canada. After all, isn’t it just as easy to set up your own business, hire your own employees, and administer payroll and other HR activities for them? Your knowledgeable and talented HR staff manages these activities for employees at your home branch. Why couldn’t they do the same for your Canadian operations?
The answer lies in the issue of legislation. Since employment legislation is administered at the provincial level, there’s an additional layer of complexity here. If you’re expanding business into several locations, you may quickly find you need to learn not one set of laws, but