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Employer of Record (EOR) in Canada
Canada is a highly sought-after market boasting many business-friendly advantages. There are tax advantages, rebates, credits, and an exceptionally skilled workforce. Many U.S. businesses have their eye on Canada for expansion because of the many tax benefits on offer.
Compared to other countries, Canada has a lower corporate tax rate of 15%. Compare that to America, where companies are taxed at a 21% rate. As a result, establishing business dealings in Canada offers companies significant savings.
There is also the income tax treaty. The treaty is designed to protect companies that do not have a permanent establishment (PE) in Canada. So while your company will need to pay some fees and file a Canadian tax return, these companies are exempt from Canadian income taxes.
And in Canada, small businesses can qualify for tax rebates and tax credits. It’s something of an alphabet soup of benefits that a solid EOR in Canada will navigate very easily.
For instance, a small business can claim goods and service taxes (GST) and harmonized sales taxes (HST) they have paid as a part of their business. Plus, businesses may also be eligible for Scientific Research and Experimental Development (SR&ED) tax credits.
It is crucial to remember Canadian Common Law over employment rules, which differs across all nine Canadian provinces. This touches work hours, salary, paid and unpaid leave and certain holidays. Hiring SERVIAP as the Employer of Record in Canada means bringing experts on board to handle such employment issues without your in-house managers having to become Canadian employee experts.
SERVIAP can help with your global expansion needs. Contact us today to learn how you can expand your business with EOR in Canada.
Why Choose Canada?
Canada is known for its stable economy. A Forbes report named Canada as a country that is both a welcoming business landscape and enjoys a valuable highly educated workforce. It also enjoys an abundance of natural resources.
Canada’s technology sector continues to grow. Notably, it’s producing more research and development (R&D) while improving the economy and creating more available jobs.
Clean technology ecosystems receive government investments.
Canada has trade agreements in place with many other countries (Across Europe, the U.S., and Latin America), plus an excellent number of skilled workers to choose from.
The government makes starting a business a pretty straightforward endeavor for Canadians and American companies can easily tap into the market by employing an EOR in Canada.
What is an Employer of Record
SERVIAP is an expert at serving as your company’s Employer of Record (EOR) and skillfully handling all things to do with human resources. All of that allows you to focus on growth and expanding your business into new markets.
The tasks SERVIAP specializes in include:
- Recruiting and global hiring
- Tax filing
- Workers’ compensation (if applicable)
- Unemployment claims
- Global hiring
- Talent Acquisition (Recruiting)
- Global HR Management.
SERVIAP is able to quickly onboard talent abroad with expertise regarding all the rules and regulations related to employment in a foreign country.
A significant advantage of bringing an EOR into your company is that the EOR becomes the actual employer. By hiring SERVIAP, your company gains foreign employees’ expertise and work product without bumping up employee headcount or adding more HR employees.
How to Begin Hiring in Canada
A business owner can easily register a company as a new business in Canada in as little as five days. Foreigners do not enjoy such a straight path. The quick route is for companies established by a Canadian citizen, a so-called landed immigrant (permanent resident), or enjoy a partnership with a citizen or landed immigrant.
Opening your enterprise in Canada as a foreign country is more challenging. Hence, it all makes utilizing an Employer of Record (EOR) a desirable option. It makes sense why companies find it easier to enlist the services of a professional employer organization to serve as the EOR to launch operations in the Canadian market.
You expand your business operations into Canada without having to establish a legal entity there.
SERVIAP takes care of it for you, which makes growing successfully in a new country much easier and less expensive than doing it yourself.
In Canada, an employment contract might be an offer letter, a written contract or a verbal agreement.
The employee does have additional rights under the Employment Standards Acts. Therefore, it’s vital to hire a company that can keep your business in compliance across a myriad of benefits from payroll deduction to overtime pay, leaves, whether paid or unpaid, plus handling termination by the employer or the employee.
Minimum standards for employees are set out in the previously mentioned “Employment Standards Acts” and its related legislation. Each of Canada’s nine jurisdictions has such standards.
There’s no annual bonus required for employees in Canada; however, overtime pay at a rate of 1.5 times the regular hourly wage or higher is a set standard.
Employee Benefits and Paid Leave
Workers in Canada enjoy liberal benefits and paid leave. However, administering it all requires the know-how to set up the benefits and the annual leave system and properly administer it.
Some examples of benefits and leave include:
Vacations or PTO
Vacation time in Canada starts at ten days of paid time off each year
Then, once the employee reaches their fifth work anniversary, vacation time goes up to 15 days annually.
Leaves of Absence
Employees have the right to paid absences for the following things:
Sick leave – Usually unpaid leave
Maternity leave – 17 weeks and can be divided up before and after the birth
Compassionate care leave – Unpaid for up to 28 weeks every year
Again, the country does not require employers to pay an annual or Christmas bonus. Instead, bonuses may be written into contracts or offered at the employer’s will most any time.
Partner with SERVIAP Group as Your EOR in Canada
SERVIAP is a leading Employer of Record (EOR) company ready to help your business expand its operations around the world. EOR is a co-employment model. SERVIAP takes on total responsibility for your talent, allowing you to focus on the strategic activities of your organization.
Contact us today to learn more about how you can expand your business with an EOR in Canada.