Canada Employer of Record

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The new ways in which the global market is gradually opening up, it has presented opportunities for employers to connect with the right candidates in Canada. However, it is a task that requires a Canadian Employer of Record to take care of all the legalities and compliances.

We at Globalization Solutions offer an extensive range of corporate and employment solutions to help your business with global expansion. In addition to assisting, you in streamlining your business expansion, we also help you with end-to-end recruitment solutions to deploy strategic sources for hiring and onboarding skilled and fresh professionals!

Hiring in Canada

Canadian provinces and territories make up the world's second-largest nation in terms of land area. In Canada, the recruiting procedure is composed of a series of standard stages and selection criteria. Certain industries are highly dependent on the business and the techniques it deploys to recruit employees. However, the majority of companies use a systematic procedure for recruiting and hiring new workers that involve many stages prior to hiring a candidate for a job vacancy. Those who react well to these are then asked to participate in interview sessions and other evaluation techniques.

Globalization Solutions as your Canadian Employer of Record ensures that all potential employees, including their references, have a comprehensive background check conducted before they are hired. As an added benefit, this allows the employer to assess the documents provided by potential hires throughout the recruiting process. Employers have the ability to choose which applicants are given positions once they have finished their assessments.

For the most part, the Canadian recruiting business emphasizes cultural sensitivity and inclusiveness. Provinces and Territories in Canada have their own labor laws protecting the majority of the workforce. When it comes to hiring a diverse workforce, our Canada Employer of Record practices a culture of openness and inclusion that welcomes people from all backgrounds and ethnicity.

Employment Contracts in Canada

While it is not mandatory to have a formal employment contract in Canada, it is highly recommended to have one completed at the time of hiring in case there is a dispute in the future about the aggregate amount, perks, or vacation time.

Canadian employment contracts must explicitly describe the obligations of workers, as well as the remuneration details, arbitration processes, and termination criteria that must be met. It is mandatory that all employment letters pay information and any other document that discusses an employee's earnings be written in Canadian Dollars.

The following standard rules can help you establish a compliant contract when looking to recruit workers in Canada. As your Canada Employer of Record, we will assist you with your specific HR requirements.

  • Type of Contracts in Canada - Written contracts for employment are just as common as verbal agreements. Unionized workers have the option to specify the contract terms of their collective bargaining agreements in writing. Employers are not required to provide any additional conditions in writing to workers apart from tax-related issues and reimbursement paperwork.

  • Working Hours in Canada- Most people work a normal five-day workweek, Monday through Friday, in general. The regulations governing operating hours in each place are set by provincial legislation. Ontario, Canada's most populated province, has a maximum weekly work schedule of 48 hours and a daily limit of 8 hours. However, keep in mind that this may be stretched if both the company and the worker agree. Overtime compensation is usually required to be 1.5x to 2.0x the regular rate of pay, depending on the province.

  • Public holidays in Canada - Nine holidays are celebrated throughout Canada, and they are usually regarded as paid time off for workers. These are as follows:

    • Good Friday
    • Victoria Day
    • Canada Day
    • Labor Day
    • Thanksgiving Day
    • Remembrance Day
    • Christmas Day
    • Boxing Day
    • New Year's Day

  • Bonuses - According to Canadian legislation, bonuses are not mandatory. Employers, on the other hand, may include the provision in specific employment agreements, which they often use as a bargaining chip with senior applicants.

  • Probationary Period - The Average Canadian probationary term for a job is three months, although, in certain regions, it may be as long as six months. If an employee leaves before the probation is over, severance is usually needed.

  • Termination and Severance -Employers in Canada are required by law to provide a prior notice spanning from one week to eight weeks, as well as compensation in lieu of notice. As soon as an employee has worked continuously for a minimum length of time, they will get notification of their right to terminate employment. Employees in Canada who are terminated after serving a total of 12 months have a claim to severance compensation under the country's severance pay legislation. Severance pay is equal to the employee's salary for two days for each year of service with the company prior to termination.

Canada Compensations & Benefits

Compensation and benefits are given by a company to its workers in return for their services, and they are considered to be an important component of human resource management. The Canada Employer of Record is thus required to help with the action plan. In Canada, compensation typically includes wages and salary, while benefits often include all indirect remuneration.

When discussing the terms of a contractual agreement with a prospect in Canada, it's important to bear in mind certain regulatory benefits and leave obligations, and how an Employer of Record Canada may help your business's compensation approach.

  • Canadian Compensation Law - The compensation laws of Canada differ from province to province. There is a set overtime wage of 1.5 times the normal salary in most areas. Overtime starts at 40 hours of labor and may go up to 44 hours depending on the province. Overtime rates cannot be refused by employers and workers cannot be forced to work beyond their allotted hours. For more information, you can get in touch with us.

  • Guaranteed benefits - Because of the social security system in place, all Canadians have access to comprehensive health care coverage. Medicare cards are issued to all residents in their jurisdiction, which entitles them to free healthcare and day-care. Additionally, it's very uncommon for businesses to provide a Group Benefits Plan on top of the free insurance.

  • Maternity Leave - Pregnant workers may take up to 17 weeks of paid maternity leave after working for the company for six months in a row and providing the company with a pregnancy certificate from a licensed medical practitioner.

  • Paternity Leave - Each state has its own set of paternity leave regulations. Up to 5 weeks of paid paternity leave is available to workers in Quebec. Parents of the same sex, as well as those who have adopted children, are all allowed to take advantage of paternity leave. Employees can apply for unpaid parental leaves of up to 63 weeks in some provinces. During maternity leaves, employers are not entitled to pay for benefits or make payments to employees. However, under the Federal Employment Insurance program employees may get benefits and pay depending upon the eligibility.

  • Probationary Period - The Average Canadian probationary term for a job is three months, although, in certain regions, it may be as long as six months. If an employee leaves before the probation is over, severance is usually needed.

  • Sick Leave - Province-by-province variations exist in the legislation. Sick leave is often not compensated in accordance with Canadian labor regulations. The Canadian Pension Plan and Employment Insurance provide benefits for workers with long-term illnesses.

As your employer of record in Canada, we make sure to abide by all legal obligations and provide you with all insights about employee compensation to help you to make a competitive employment offer.

Taxes in Canada

In Canada, taxes are a complicated issue since they fall under both provincial and federal jurisdiction. As a result of Canada's progressive tax system, higher-income earners are required to pay a larger percentage of income in taxes. To account for pension schemes and employment insurance, the federal rate will range from zero percent to 33 percent by 2020. A second provincial rate will also vary widely based on income and region.

The federal government charges a 5% GST on all goods and services. Additionally, some provinces apply a provincial sales tax (PST); the rate varies by jurisdiction and ranges from 6% to 9.975%. Location on December 31st of the tax year determines your residence province. Certain jurisdictions have opted to merge the two levies into a single tax known as the Harmonized Sales Tax, or HST, which comprises both federal and provincial components. A 13% HST in Ontario, for example, is split 5% federal, 8% provincial.

Payroll Deductions and Contributions

However, Canadian laws governing employment and payroll are convoluted and widely divergent among the country's provinces. It is consequently essential to establish an employee's territory or province of work in order to guarantee that the correct amounts are deducted.

To begin remitting deductions to the CRA, prospective employers must create a payroll program account. Following that, the employer must get the employee's social security number and submit Form TD1. For sole proprietorships and partnerships, payroll account deductions are not transmitted to the CRA.

Entrepreneurs who work for their incorporated firm will have to deduct their salaries since they are considered employees. In order to avoid paying Employment Insurance payments, an entrepreneur must own more than 40% of the company's common shares. However, self-employed individuals are entitled to certain Employment Insurance benefits.

You're required to submit a summary of all workers' pay and deductions at the conclusion of the fiscal year. For each employee, a T4 or T4A slip must be used to record the earnings and deductions the employee has made.

Employers that fail to deduct or remit the appropriate contributions from their workers' salaries should exercise caution. The CRA may charge you a penalty equivalent to 10% of the amount you should have withheld for the Canada Pension Plan, income tax, or Employment Insurance.

Rates for social security and Medicare withholding

Social security taxes are now levied at 4.95 percent for employers and 4.95 percent for employees in Canada, respectively.

Canada Employer of Record Features and Benefits for the Employer

Employers are often in charge of all legal elements of their worker’s employment. This procedure will likely be more time-consuming if you are in a new nation.

At Globalization Solutions, we have a wealth of knowledge and expertise dealing with the payroll and tax systems in Canada, as well as other local rules and regulations. We can assist you with a variety of tasks.

  • A solution that is specifically designed to meet the demands and future ambitions of your firm.
  • Local professionals can provide you with all of the information you need about the Canadian market.
  • Offering EOR best practices in the areas of taxation, agreements, costs, and social security benefits
  • Hiring with lightning speed and with efficiency
  • Start your operations within days.

Canada Employer of Record Features and Benefits for the Employee

Your company's most important asset is its employees. They are responsible for keeping the motivation up, and it is thus critical to develop a solid agreement that is acceptable to both the employees and the employer.

Globalization Solutions as your Employer of Record in Canada is responsible for ensuring that your workers are satisfied with the terms of the employment contract. A wide range of excellent perks as well as a dependable and legally acceptable hiring process are available because of our extensive network and team of professionals. We will see to it that they have a good time by providing them with:

  • Quick and clear onboarding.
  • A written employment contract that complies with local laws and requirements.
  • A monthly payment that is agreed upon and paid on time.
  • Great benefits such as pensions and insurances.
  • The presence of a frequent point of contact
  • Details and counseling on changes in local rules that are up to date are provided

Why Globalization Solutions?

If you're a business owner looking forward to expanding your business to Canada, undergoing all the processes and expenses to solidify the whole setup is not the only option! We at Globalization Solutions are here to help you in getting started with your business operations in Canada with our comprehensive employment solutions.

We are a team of proficient expansion and proliferation experts, and so we can efficiently accelerate the expansion of your business into the Canadian market. Be it your requirement for dealing with employee taxes, visa application benefits, insurance sponsorship applications for other transactions, we are here as your Canada Employer of Record at your service

Contact us today to expand the horizons of your business's successful reach across Canadian markets