Canada EOR Services
With Native Teams, you can easily hire employees from Canada without opening a separate business entity. We handle local laws, taxes, and international payroll management, so you can focus on expanding your business.
Why use an employer of record services in Canada?
Normally, businesses are required to establish a legal entity in order to hire employees in Canada. That means registering an address, finding an office and opening a local bank account. All of this plus trying to navigate local payroll, tax, regulations and benefits can take months.
But when you use an employer of record (EOR) provider like Native Teams, your business can operate in Canada without a legal entity, saving you time and resources while also ensuring compliance with all employment laws and regulations.
How do EOR services in Canada work?
When you decide to hire your new employee through our employer of record (EOR) service in Canada, that employment will be shared between your company and the EOR.
You will retain full management over the work of your team, while the EOR will take on the responsibility of being the legal employer of your employees, handling everything from payroll and taxes to benefits and administrative fees. Your only obligation will be to issue payment to the leasing company to cover these costs.
Requirements for employment in Canada
Check out some of the legal and tax requirements that employers must meet when hiring employees in Canada:
Employment standards
Employers must comply with federal, provincial, and territorial employment standards legislation, which sets out minimum standards for employment conditions such as wages, hours of work, overtime, vacation, and termination requirements. These standards may vary depending on the jurisdiction.
Payroll deductions
Employers are responsible for deducting income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums from employees' wages. These deductions must be remitted to the Canada Revenue Agency (CRA) on a regular basis.
Employment contracts
It is recommended to have written employment contracts that outline the terms and conditions of employment, including compensation, job duties, hours of work, and any other relevant details.
Employment insurance
Employers are required to register with the EI program and make contributions on behalf of their employees. These contributions provide employees with temporary income support in case of job loss or leave due to illness, maternity, or parental reasons.
Canada pension plan
Employers must contribute to the CPP on behalf of their employees. CPP provides retirement pensions, disability benefits, and survivor benefits. Employers and employees each make contributions based on the employees' earnings.
Workers' compensation
Employers are generally required to register with the provincial workers' compensation board to provide compensation coverage for workplace injuries and illnesses. The specific requirements and coverage vary by province or territory.
Employment insurance reporting
Employers must complete and submit a Record of Employment (ROE) for each employee who experiences an interruption of earnings, such as a layoff, termination, or leave. The ROE is used to determine eligibility for EI benefits
Employment equity
Federal contractors and employers in some provinces may be required to develop and implement employment equity programs to promote equal opportunities for designated groups, including women, Indigenous peoples, persons with disabilities, and visible minorities.
Occupational health and safety
Employers have a legal obligation to provide a safe and healthy work environment for their employees. Compliance with occupational health and safety regulations is essential to prevent workplace injuries and illnesses.
It is important to note that employment and tax laws can vary by province or territory, so we recommend employers consult with legal and tax professionals to ensure compliance with the specific requirements in their jurisdiction.
Please note that all these requirements may vary depending on the job type, the employer and individual circumstances.
Read moreFeatures of Canada employer of record with Native Teams
Employment status
When hiring through Native Teams, your new employee will be properly employed through our entity and will receive a contract following all Canadian employment laws and regulations.
Get startedHR administration and documentation
We will automate all the HR administration and keep the documentation of all your global employees in your Native Teams dashboard, allowing you to access everything with one click.
Get startedGlobal payroll
Calculating salaries, taxes, benefits, and other deductions for your global workforce can be daunting. Our payroll calculators simplify the process and allow you to manage payroll for all employees on a single platform.
Run global payrollBenefits
We'll ensure that your new employee receives all mandatory benefits, such as healthcare, insurance, and pension. Additionally, you can offer them extra benefits like gym memberships and wellness options!
Learn moreWhy choose Native Teams as your Canada employer of record?
Native Teams has legal entities in 70+ countries around the world and has been recognized for its outstanding EOR services, helping companies expand and hire internationally.
Our tax, legal and compliance experts can help you with everything you need regarding hiring and paying your employees and taking care of all your administrative tasks such as HR admin, payroll, risk management and more.
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