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Canada Employer of Record (EOR) Services

All Countries > Canada
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Capital

Ottawa

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Official Language

English, French

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Currency

Canadian Dollar

Payroll Desktop

Payroll cycle

Bi-Monthly

Via offers complete payroll, EOR and contractor mangement services for Canada
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Quick facts about Canada

Canada is one of the United States' most important economic partners. Home to one of the best public education systems in the world, Canada is a booming talent hub across all industries, including tech, financial services, healthcare, and agriculture. Despite being a relatively small country by population, Canada's GDP is approaching $2 trillion. Companies looking to expand globally can hire top Canadian talent by partnering with an EOR service like Via.

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Companies all over the world have started hiring remote workers and building hubs in Canada. If you’re planning to hire in Canada for the first time, however, you’re probably discovering how complicated it is to open an entity in the country and manage payroll & benefits for your Canadian workforce. 

The good news is that an employer-of-record (EOR) provider like Via can help you onboard new employees in minutes and offer local on-the-ground support. By partnering with an EOR, you can hire and pay workers in Canada compliantly without opening an entity or establishing a Canadian HR team. 

Keep reading to learn about the hiring, employment, payroll and benefits requirements for onboarding workers in Canada, as well as how an employer-of-record (EOR) in Canada can help you manage your international employment needs.

What is an employer-of-record (EOR) in Canada?

An employer of record (EOR), sometimes known as an international PEO, enables you to quickly hire and onboard workers in Canada, often in as little as two weeks, without having to take on the cost and risk of establishing a local entity.

EORs in Canada help companies of all sizes:

  • Manage payroll, employment contracts, and statutory benefits

  • Navigate payroll taxes and other HR processes

  • Support full-time workers across the entire employee lifecycle, from onboarding to offboarding

  • Sponsor work visas & permits, including LMIA support 

  • Save thousands of dollars and countless hours of valuable time

Canada at a glance: Key facts about Canada

Population

38.01 million

Currency

Canadian dollar

Capital city

Ottawa

Business languages

English, French

GDP

1.643 trillion USD

Minimum hourly salary

$16.65 CAD per hour

Working hours

8 hour days (40 hour weeks)

Number of public work holidays

10

Misclassification penalties

Penalties for misclassifying employees and contractors in Canada can range from making back payments of statutory benefits to severe fines and legal repercussions. Back payments for misclassification include an interest fee of either 10% or 20%, depending on the severity and number of cases. 

Time to hire with an EOR in Canada

1-2 business days

PTO

What to know before hiring in Canada

An EOR can help you understand the cultural differences in the workforce and ensure that you’re adhering to employee expectations, both during the hiring process and ongoing employment.

For example, you’ll need to know that although English is the primary language in Canada, in the province of Quebec, French is also an official language. 

What is work culture like in Canada?

Canadians value listening and polite social interaction in their everyday conversations. They are known to be softer than Americans in the way that they approach most situations. 

Teamwork and harmoniously working with co-workers on projects and tasks is a key part of work culture in Canada. If you are late to a meeting, Canadians will wait no more than 15 minutes before starting that meeting. Not valuing your co-workers’ time and input on a project will not paint you in the best light. 

What time zone is Canada in? 

Canada has six standard time zones, so if it’s 9am in NYC its:

  • 10:30am in Newfoundland

  • 9am in part of Ontario, including Toronto

  • 8am in New Brunswick and Nova Scotia

  • 8am in Saskatchewan

  • 7am in Alberta and the Northern Territories

  • 6am in British Columbia

What is the typical work week in Canada? 

The typical work week in Canada is 40 hours, with eight hours per day being standard. 

A 30 minute break must be taken before the 5-hour mark for lunch. 

In some provinces, such as Ontario, employees are entitled to overtime pay for any hours worked over 44 hours per week. Additionally, employees are entitled to a minimum of one day off per week, although this may not always be the case on the weekend. 

Employer costs

To hire a new employee in Canada, employers will have standard typical overhead costs, which include:

  • Annual salary

  • Contributions to the Canadian Pension Plan (CPP)

  • Employment Insurance

  • Benefit package

  • Vacation and sick days

  • Onboarding and training

What public holidays are in Canada? 

Per federal regulations, Canadian employers must pay for at least 10 holidays (non-working days) per year, including: 

  • New Years (1/1/2023)

  • Good Friday (4/7/2023)

  • Victoria Day (5/22/2023)

  • Canada Day (7/1/2023)

  • Labour Day (9/4/2023)

  • National Day for Truth and Reconciliation (9/30/2023)

  • Thanksgiving (10/9/2023)

  • Remembrance Day (11/11/2023)

  • Christmas Day (12/25/2023)

  • Boxing Day (12/26/2023) 

How is internet connection in Canada? 

Right now, Canada ranks 21st in the overall world index for internet connection.

  • 79.96 Mbps average for download speeds 

  • 98% of Canadian households have internet access

Remote work statistics in Canada

Over ⅓ of Canadian jobs can now be performed online and workers prefer being able to work from home. They report having higher productivity levels when they don’t have to go into an office everyday. 

Industries that thrive in Canada

Canada has a diverse economy, and several industries thrive in the country, including:

  • Natural resources

  • Technology

  • Financial services

  • Agriculture 

Important distinctions between provinces

When deciding to hire in Canada, you should consider each province and what cultural or regulatory distinctions stand out. 

Some important differences between provinces: 

  • Quebec: The official language in Quebec is French, so expect to see most contracts and official documentation translated into the language.

  • Ontario: The Employment Standards Act outlines and dictates all of the employment and labor laws in the province.

  • British Columbia: This west coast province offers extended benefits plans through the province's Medical Services Plan. British Columbia also has a thriving tech industry, making it one of the best places in the country to recruit developers and other tech-focused employees.

Maternity & paternity leave

Hiring full-time employees vs. contractors in Canada

Right now, more than half a million people in Canada are considered contractors or self-employed. Many companies begin hiring contractors in Canada, but fail to learn about compliance and distinctions between contractors and full-time employees. 

Some general distinctions between employees and contractors in Canada include:  

  • Employees are on payroll while contractors are paid per project 

  • Contractors file and deduct their own taxes 

  • Employees are entitled to benefits while contractors are not 

  • Contractors are not entitled to notice or severance

  • Contractors set their own hours and completion of projects while employees have a set schedule 

If you partner with an EOR solution, you can hire full-time employees without worrying about misclassification. Many companies find an EOR after they have too many contractors in a new country, which makes it difficult to scale.

Employment legislation

Canada Labour Code

Federal law that sets the minimum employment standards for employees who work in federally regulated industries

Human Rights Code

Each province in Canada has its own human rights code that prohibits discrimination during employment

Employment Standards Act

Sets the employment standards for non-federally regulated employees for vacation, hours, wage, and overtime

Occupational Health and Safety Act

Sets the requirements for workplace safety and ensures the employers provide a safe working environment

Hiring process with an EOR in Canada

  1. Start recruiting top Canadian talent using your in-house recruiter or by partnering with a recruiting agency based in Canada (Via can introduce you to one of our local recruiting partners)

  2. Choose the EOR partner that fits your hiring needs (Via, for example, is the best EOR for hiring 20+ workers in Canada)

  3. Complete LMIA and work visa application, if the employee is not a Canadian citizen

  4. Begin onboarding full-time employees with local benefits such as private health insurance 

  5. Manage new worker onboarding, as well as ongoing payroll, benefits, compliance, and other local HR processes for your growing hub

  6. Scale your hub to 20-100+ workers without an entity

  7. Offboard workers with compliant severance packages 

End of employment in Canada

In Canada, employers must provide an employee with a written notice at least 2 weeks before the date they intend to terminate his/her employment. If employers do not offer a 2 weeks notice, they must pay 2-weeks worth of wages to the employees. 

An EOR is responsible for compliant offboarding, creating the right severance package, and notifying employees of termination or layoffs. 

Canada: What works best for you? EOR? PEO? Subsidiary? Let's find out

When you decide you want to expand your business and hire employees in Canada, you have a few options: partner with a PEO, open your own subsidiary/entity, or partner with an EOR. Each option has its own pros and cons. Let's explore below! 

Partnering with a PEO in Canada

The first option is to partner with a third-party PEO service provider in Canada. 

Pros of a PEO

Cons of a PEO

Simple payroll and HR outsourcing

Need to set up an entity in Canada (which is time consuming)

Usually located in Canada

Must enter into a co-employment agreement, which makes you partially liable if any compliance problems arise 

Useful knowledge about compliance in Canada

Not specifically tailored to your business needs in Canada

Opening a subsidiary in Canada

If you have the resources to open an entity and know you’ll be staying in Canada permanently, you can open your own subsidiary in the country. This can be a good option if you plan to sell goods in Canada.

Pros of opening a subsidiary

Cons of opening a subsidiary

Direct management of your entity in Canada

Registering a subsidiary in Canada starts at around $6500 USD after completing all of the necessary steps, but you also need to take into account legal, accounting, and other fees

Can hire a local HR team to help manage payroll and employee benefits in Canada

Entity setup normally takes at least 12 weeks in Canada but can last up to 1 year, depending on your business needs

Assimilate your business practices to Canadian culture by being directly immersed in the marketplace

Forced to deal with local bureaucratic agencies and will need your own in-country legal team

Partnering with an EOR in Canada

The last option is to partner with an EOR service provider like Via. 

Pros of an EOR

Cons of an EOR

Save your business at least $6,500 USD and 12 weeks by avoiding entity incorporation in Canada

May not be the best option if you need to hire 500+ workers in Canada (you should open your own entity)

Avoid having to navigate the tricky LMIA process for hiring foreign workers through visa sponsorship

May have less control over how HR is managed 

Help with benefit and payroll management, support during the onboarding and offboarding process

Learn more about EOR services.

Why companies partner with Via

Via makes hiring talent around the world and building your global team seamless by helping you onboard workers in as little as 2-3 business days. With our easy-to-use platform, Via helps you manage local HR processes for direct employment such as work visas & permits, employee data privacy compliance, benefits, global payroll, background checks, and more. Our team of local labor lawyers and on-the-ground experts provide 24-hour local support and ensure that your company remains compliant while expanding abroad. As your employer-of-record/entity abroad, Via assumes responsibility for employment liability, so that you can focus on what matters: recruiting and managing your team.

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    Canada Employee Compensation & Benefits
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    Set up Your Subsidiary in Canada
    Request a demo

Frequently asked questions

  • What’s the difference between PEO and employer-of-record services in Canada?

    When a company partners with a PEO they are entering into a co-employment relationship, which means the country needs to establish an entity. EOR services, on the other hand, take full responsibility for maintaining compliance, and companies that partner with an EOR service like Via do not need to open a local bank account, establish a local address, or register with Canadian institutions. PEO and EOR services can help companies looking to go global.

  • What is an employer-of-record service?

    An employer-of-record service or partner is a company or organization that functions as a legal employer for employees based in countries where their company does not have an established entity. Employer-of-record services like Via take full responsibility for handling payroll, paying local taxes, and ensuring that legal compliance is met in the given country.

  • How often is payroll in Canada?

    Payroll in Canada occurs every two weeks and normally happens on the second and fourth Friday of the month. Legally, employees below the management executive level must receive a paycheck at least every 16 days. The only exception is when employees are first hired. In this case, they must receive their first check within a month of starting. Executives only need to be paid once a month.

  • What’s the difference between PEO and employer-of-record services in Canada?

    When a company partners with a PEO they are entering into a co-employment relationship, which means the country needs to establish an entity. EOR services, on the other hand, take full responsibility for maintaining compliance, and companies that partner with an EOR service like Via do not need to open a local bank account, establish a local address, or register with Canadian institutions. PEO and EOR services can help companies looking to go global.

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