Using a Canadian PEO can provide significant advantages when hiring full-time remote employees. Global PEOs like Deel and Oyster offer a great way to hire contractors in many countries around the world, but they may not be the best option for companies that want to hire full-time, long-term employees remotely in one country. That’s where local, country-specific PEOs come in.
Why? Country-specific PEOs have a deep understanding of local labor laws and compliance requirements. They can help you hire and manage full-time employees in that country without having to set up your own legal entity. And this can save you time and money and give you peace of mind knowing that your remote employees are employed in a fully compliant manner. A country-specific PEO will also typically be smaller than a global PEO, which means that you can expect a more personalized service with greater attention to detail.
If you’re looking to hire and manage full-time employees in Canada, using a Canada PEO can expedite the process of developing a workforce without establishing a legal entity. We’re going to discuss when working with a Canadian PEO might be your best option.
Let’s dive in:
What is a PEO, and What Employee Benefits Do They Provide?
A PEO acts as a co-employer, handling human resources, administrative services, payroll, and other administrative tasks, enabling your staff to continue working for your company while based in another country. This offers a legal framework that means you can easily comply with that country’s labor laws without needing any expertise yourself. This integrated approach to employee management helps companies save time and focus on their core business activities.
The PEO will essentially take over certain responsibilities, typically handling tax, insurance, employee benefits, and compliance. The employee and employer can maintain their working relationship, meaning only the administrative aspects are routed through the PEO.
Whether you want to work with a global or local PEO can depend on the size of your company and your long-term goals.
When Should Companies Work with a Country-Specific PEO vs. a Global PEO for International Operations?
Global PEOs are a good option for larger companies that are managing a global network of employees, often contractors, around the world. Indeed, global PEOs have an international network of experts and resources that can help companies manage that remote staff without needing a large team capable of doing so.
So if your company is planning to or interested in hiring individuals remotely around the world, particularly as contractors, working with a global PEO makes sense.
But what if you’re interested in hiring someone on a full-time basis, as if they were in the United States, but remotely in their country of origin? Or what if you’re planning to hire an employee in the US but then have to relocate them to a country where you don’t have an entity because of visa issues, family situations, etc.? In those and other similar cases, working with a local, country-specific PEO can provide the expertise you need to do this correctly and compliantly.
A country-specific PEO will have a deep understanding of the labor laws, Canadian employment law, tax laws, immigration laws, HR rules, work culture, and more of the country it’s based in, which is crucial for companies that want to hire remote workers and make sure to avoid compliance headaches. Understanding Canadian labor law is crucial for compliance and smooth operation, including the administration of mandatory benefits and contributions, drafting compliant labor contracts, and ensuring adherence to local regulations. Additionally, navigating the variations in provincial labor laws can be challenging without local expertise. A country-specific PEO might also be able to provide its clients with access to a pool of qualified remote candidates since it works in just one country. Finally, country-specific PEOs are often more affordable services than large global PEOs while providing more of a white-glove service.
Why Should US Tech Companies Hire Remote Tech Workers in Canada with a Canadian PEO under Canadian Employment Law?
Canada’s overall booming tech sector and quality of life are major draws for skilled workers and Canadian employees worldwide. Employers also contribute to the Canada Pension Plan and Employment Insurance, ensuring comprehensive social security for Canadian employees. There’s also the cost savings, primarily due to the lower cost of healthcare, education, and potentially more favorable taxation, depending on your situation. Additionally, negotiating private health insurance can provide supplementary benefits to employees.
Canada stands out in the race to attract global tech talent. They recently unveiled a new work permit targeting immigrants in the US holding H-1B work visas which swiftly reached its 10,000-applicant cap. Coupled with programs like the Global Skills Strategy — a fast-track immigration program for skilled workers — Canada welcomes tech workers rapidly and offers a swift path to permanent residency.
Working with an expert Canadian PEO — like Syndesus — means you can take advantage of the benefits the country offers without the stress of navigating many of the technical aspects of employment in Canada. PEO Canada is a partnership-driven organization that provides personalized solutions, trusted advisory services, and comprehensive support to businesses across Canada.
Syndesus Helps US Tech Companies of All Sizes Expand to Canada with Payroll Services
Syndesus helps US companies that don’t have an office in Canada leverage Canada’s tech talent and favorable immigration and HR services for tech workers, whether those companies are small US startups or large corporations. This means you can hire without needing to establish a local entity.
Hiring workers remotely through Syndesus means that the immigration, payroll, and pay employees, and other administrative processes are taken care of for you while you focus on expanding your talented workforce and moving your company forward.
Our turnkey PEO services also enable US tech companies to move their existing tech workers from the US to Canada or hire new tech workers in Canada, taking care of the visa sponsorship, as well. With Syndesus, Canada can easily become your tech company’s next remote office.
Canadian Labour Law and Compliance
A major advantage of using a Canadian PEO is their deep understanding of Canadian labour law. Employees have the legal right to paid vacation under federal law, and after six consecutive years with the same employer, the minimum vacation entitlement increases to three weeks of annual paid leave. Canadian employment laws are complex and vary by province, covering aspects such as minimum wage, overtime pay, employee leave, and termination procedures. A Canadian PEO ensures that your company remains compliant with these regulations, reducing the risk of legal issues and potential fines. This compliance expertise is crucial for US companies unfamiliar with Canadian legal requirements.
Human Resources Management with a Canadian PEO
Human resources management is another area where a Canadian PEO can add significant value. From recruitment and onboarding to performance management and employee relations, a Canadian PEO handles all aspects of HR. They ensure that your employees receive competitive benefits and have access to necessary resources, contributing to higher job satisfaction and retention rates. This comprehensive HR support allows your company to focus on strategic initiatives while the PEO manages day-to-day HR tasks.
Benefits of Partnering with a Canadian PEO
- Local Expertise: A Canadian PEO possesses in-depth knowledge of local labor laws, tax regulations, and employment standards, ensuring compliance and reducing risk.
- Cost Savings: By outsourcing HR and administrative tasks, companies can save on operational costs and avoid the expenses associated with establishing a legal entity in Canada.
- Talent Access: Canadian PEOs can tap into a diverse pool of qualified candidates, helping companies find the right talent quickly and efficiently.
- Focus on Core Business: With HR and administrative burdens handled by the PEO, companies can focus on their core business activities and strategic growth initiatives.
- Scalability: A Canadian PEO allows companies to scale their operations up or down as needed, providing flexibility and adaptability in response to changing business needs.
Conclusion
In conclusion, while global PEOs offer valuable services for companies looking to manage a dispersed, international workforce, a Canadian PEO provides specialized expertise and personalized service for companies aiming to hire full-time remote workers in Canada. By leveraging the benefits of a Canadian PEO, US tech companies can access top talent, ensure compliance with Canadian labor laws, and focus on their core business activities without the complexities of managing international HR and administrative tasks. Syndesus, with its comprehensive PEO services, stands out as a trusted partner for US tech companies looking to expand their operations into Canada. Reach out to us to learn more about how we can help you hire remotely in Canada! Clients express overwhelming satisfaction with PEO Canada’s expertise, responsiveness, support, communication, and trustworthiness.
By understanding the distinct advantages of working with a Canadian PEO and the robust support they provide, companies can make informed decisions that align with their growth and operational goals. Whether it’s navigating Canadian labour law, managing human resources, or ensuring compliance, a Canadian PEO like Syndesus offers a strategic advantage for companies looking to expand their global footprint.
Syndesus helps US tech companies of all sizes expand to Canada with payroll services
Syndesus helps US companies that don’t have an office in Canada leverage Canada’s tech talent and favorable immigration and HR services for tech workers, whether those companies are small US startups or large corporations. This means you can hire without needing to establish a local entity.
Hiring workers remotely through Syndesus means that the immigration, payroll, and pay employees, and other administrative processes are taken care of for you while you focus on expanding your talented workforce and moving your company forward.
Our turnkey PEO services also enable US tech companies to move their existing tech workers from the US to Canada or hire new tech workers in Canada, taking care of the visa sponsorship, as well. With Syndesus, Canada can easily become your tech company’s next remote office.
Reach out to us to learn more about how we can help you hire remotely in Canada! Clients express overwhelming satisfaction with PEO Canada’s expertise, responsiveness, support, communication, and trustworthiness.
The information provided on this blog is for general informational purposes only and is not intended to be legal advice. Please consult with a qualified legal professional for advice tailored to your situation.
About Marc Pavlopoulos
Marc Pavlopoulos is the CEO and Founder of Syndesus, a Professional Employer Organization that provides PEO services for US companies seeking to employ workers remotely in Canada, builds engineering teams in Canada for VC-backed startups in the US, and set-up remote offices in Canada for US companies. Additionally, Syndesus can assist foreign-born tech workers (and their US employers) with options for working remotely in Canada if they cannot stay in the US due to immigration/work visa issues.
As an American who has moved to Canada twice (for grad school and for work), Marc understands the challenges involved in starting a new life in a new country. Marc is a son of an immigrant and has great respect for people who leave their home country and seek a better life in the US or Canada.
Marc’s goal is to do everything he can to help those individuals achieve their dreams. Marc also has a second venture (Path to Canada) which helps foreign-born technical workers who cannot stay in the US (for immigration reasons) get a job and work authorization to work in Canada.
