EOR Service in Canada

Shraddha Saxena

Hire, Onboard and Pay Employees in Canada Quickly and Efficiently

Hiring in Canada at a glance

CURRENCY
Canadian Dollar (CAD)
working hours
40 hours per week.
public/bank holidays
10
capital
Victoria (State Capital)
language
English and French
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Jan 1st to Dec 31st
minimum hourly salary
No minimum wage
CURRENCY
Canadian Dollar (CAD)
public/bank holidays
10
capital
Victoria (State Capital)
language
English and French
date format
DD/MM/YYYY
tax year
Jan 1st to Dec 31st
payroll frequency
Bi-weekly
GDP
USD 2.14 trillion (2022)
working hours
40 hours per week.

Employer of Record in Canada

Despite Canada being a business-friendly nation, it can still be challenging for foreign employers to set up a business and hire talent. Labor laws are similar to the USA, and even experienced employers can make compliance mistakes.

For smaller businesses that can't invest heavily in market research, entering Canada can be risky.

A Canadian PEO helps manage these risks and hires employees without compliance worries. It simplifies onboarding, payroll, and benefits so you can focus on business growth and strategy in the Canadian market.

Why use Canada EOR?

Canada is a talent haven for foreign employers. The country ranks high for labor-employee cooperation (23rd) and the ease of finding skilled employees (26th) implying to employers that the Canadian workers are a must-have for high-tech and high impact business roles. 

However, to tap into this powerful workforce, employers need to overcome two hurdles: 

1) Setting up a local entity to onboard and pay talent 2) Stay compliant with local labor laws. 

Firstly, setting up a local entity can cost you up to several thousand dollars which includes incorporation costs, acquiring business licenses and permits, legal consultation fees, rent, taxes and other miscellaneous expenses. Secondly, Canadian labor laws are extremely employee-friendly. According to the Global Talent Competitiveness report, Canada ranks no.1 for pension contributions, 26th  for social protection, 12th for labor law enforcement. 

Despite the highly -regulated environment, Canadian labor laws vary with each province. Laws around minimum wages, employment contracts, and social security contributions are different in each state.

Partnering with a Canada EOR and PEO helps you skip all these hurdles. With a Canada EOR, you can employ Canadian talent onto the EOR’s local entity and payroll. By acting as the primary employer for your local talent, the EOR will free you up from all onboarding and payroll activities. The EOR also helps you stay compliant with local labor laws as well.

EOR Costs in Canada

Canada  EOR/PEO Pricing

Professional Employer Organizations (PEOs) use two pricing methods: fixed and variable.

Gloroots is a PEO that follows the fixed pricing approach. Our prices are consistent no matter how many employees you hire. 1

Employees hired through Gloroots receive HR support, benefits management, and access to a real-time expense tracking dashboard.

Key Metrics For Foreign Employers

Canada ranks 15th in the global talent competitiveness index. Being one of the world’s highly-developed countries, the country is a haven for high-impact, skilled talent. 

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Canada.

Factors Global Ranking Interpretation
Rule of law 12 Indicates effectiveness of law enforcement
Labour-employer cooperation 23 Indicates positive labor-employee relationships
Reading Maths, and Science 6 Indicates average scores in OECD's survey of 15-year old students
University Ranking 6 Indicates average QS rankings
Labour productivity per employee 23 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 26 Indicates findability of skilled talent
Workforce with tertiary education 2 Indicates % of workforce with PG degrees
Digital Skills n/a Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Canada.

Why work in Canada?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

"Employee misclassification" refers to when employers mistakenly categorize their contractors as full-time employees. This happens when an employer labels someone as an independent contractor or doesn't give them the benefits and rights they should have as an employee.

Using Gloroots in Canada helps lower the risks of employee misclassification. Gloroots ensures that everyone follows labor laws, correctly classifies workers, manages payroll accurately, and provides full benefits. This allows companies to focus on their core tasks while experts handle employment-related responsibilities.

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Avoid hefty penalties with Gloroots.

Use our free employee misclassification risk calculator to estimate your risk level.

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Employing in Canada

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Income tax 

Other Taxes and Social Security contribution

Employer Payroll Contributions

Tax Employer Contribution
National Pension 9.46%
Employment insurance maximum annual employer premium 1,333.84 CAD 5.70%
Workers Compensation contribution (WorkSafeBC insurance, assigns a classification unit based on the products produced, the services provided, and the processes, technology, or materials used. The average base premium rate for 2022 is 1.55% of employers’ assessable payroll) 2.21%
Total Employment Cost 1.55%
33% on the portion of taxable income over $235,675

Employee Payroll Contributions

Contribution Rate
Canada Pension Plan (CPP) Maximum pensionable earnings 64,900 CAD, annual basic exemption 3,500 CAD, maximum contributory earnings 58,100 CAD, maximum employer & employee contribution 3,499.80 CAD 5.70%
Employment Insurance (EI) (Maximum annual employer premium 952.74 CAD) (Maximum annual insurable earnings 60,300 CAD) 1.58%
Total Employee Cost 7.03%
Total Employment Cost 1.55%
33% on the portion of taxable income over $235,675

Separation

Termination Process

An employer has two methods for ending an employment contract:

  1. Notifying the employee in writing.
  2. Termination based on valid reasons.

It's crucial to remember that the employee's final payment must be:

  1. Issued within 48 hours after the employer terminates the employment agreement.
  2. Disbursed within 6 days after the employee concludes the employment agreement.

Notice Period

Typically, there's no mandatory notice period in British Columbia, Canada, although it's customary to provide one month's notice.

Severance Pay

An employee is eligible to receive severance pay upon having served a minimum of 12 uninterrupted months of continuous employment prior to being laid off or dismissed, leading to the termination of their employment.

For every complete year of service to the employer before their employment was terminated, they are entitled to receive an equivalent of 2 days' regular pay. The least amount payable as severance is equivalent to 5 days' wages.

Probation Periods

Laws on probation periods vary with each province. For example, in British Columbia, a permanent employee's probation period lasts at least three months.

Start Hiring in Canada today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

Grow your team in Canada

Growing your team means hiring the right people for the right roles. In Canada, setting up a local entity is crucial for effectively handling compliance, payroll, taxes, and benefits. The intricate labor regulations in the country underline the challenge of adhering to employment laws.

Gloroots offers a comprehensive global Employer of Record (EoR) service, enabling you to entrust payroll, taxes, benefits, and compliance complexities to Gloroots. This empowers you to focus on what truly matters: supporting your employees and advancing your company's growth in Canada.

Are you Ready to
Experience Seamless Hiring in Canada?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Canada.

Speak to our Expert