The Complete Guide for American Companies Expanding to Canada

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Hire in Canada from US,
the right way.

Want to hire or already found talent in Canada? We can help you pay & manage Canadian workforce without the need to open an office.

You found the perfect remote hire in Canada. What now?

If your first thought is to hire them as a contractor, you’ll soon realize that it’s not as straight forward as hiring contractors in USA. Canadian employment laws are complex and complicated compared to USA.

Is it even possible for a US company to hire a non-US citizen residing in Canada, remotely? Especially when you don’t have an office in Canada. 

Employer of Record legally allows you to hire Canadian talent remotely 

An Employer of Record (EOR) acts as a third-party entity that takes on the legal responsibilities of being an employer for a designated employee or workforce. This encompasses a wide range of tasks, including payroll management, benefits administration, HR compliance, and various administrative duties. Essentially, the EOR becomes the official employer for tax and legal purposes, while the client company maintains control over day-to-day operations and employee management.

What is included with Employer of Record? 

Table Example
EOR
Employment
Establish an employment contract with the Canadian worker, assuming all employment-related liabilities and ensuring compliance with Canadian employment legislation.
Administrative set-up/HRIS Data management
Handle all relevant HR-related documentation and ensure proper setup in the HRIS/Payroll system. Assist with the enrollment process for benefits programs, including health insurance, retirement plans, and other employee perks.
Onboarding
Manage the onboarding process for the Canadian worker, reviewing their Canadian employee handbook, creating awareness on policies, internal tools and systems, and educating them on internal HR processes.
Regulatory and Compliance Training
Administer mandatory workplace safety and anti-harassment training to ensure that employees and organizations adhere to various laws, regulations, and industry standards.
Employee Check-in
Regular check-ins with the Canadian worker to collect feedback on their onboarding experience, address any questions or concerns, and deliver regular updates/information.
Payroll Administration
Manage accurate and timely employee compensation to the Canadian worker, tax and benefit deductions, timely remittance of statutory withholdings and employer taxes, effectively manages all payroll-related administrative tasks and maintain compliance with legal requirements.
Benefits Administration
Comprehensive management of employee benefits programs, including selecting and managing benefits plans, enrolling employees, ensuring compliance, and providing ongoing support.
Worker’s Compensation Administration 
Management of claims for the Canadian workers from initial reporting through resolution, coordination with insurance providers, and ensuring that all legal and procedural aspects of Canadian workers' compensation are properly addressed.
Employee Performance
Support the Canadian worker's performance reviews by managing administrative tasks, ensuring compliance, providing necessary tools and training, and maintaining records.
Termination
Direct the end-to-end termination process, from finalizing severance packages and processing last paychecks to managing unemployment claims and ensuring adherence to legal and regulatory requirements.
Employment Liability & Compliance
HR Compliance
HR Advisory Service **
As your trusted HR partner, we can offer unbiased counsel on any HR need for your organization from employee hiring, management, separation and post-termination activities.
Recruiting ** 
Manage the hiring process through attracting, evaluating, co-ordinating interview and assist with offer negotiation to acquire top talent to meet an organization's staffing needs.
Job-specific and Skills Training
Any training required for their day-to-day work, competency development, certifications, upskilling are NOT offered.

**Add on service 

What our clients say about us.

Why do you need a Canadian EOR
over a global EOR? 

Canadian employment laws and tax regulations are complex. Our deep understanding of federal and provincial labor laws & regulations ensures minimal risk to your organization. We understand the U.S. tech sector and Canadian HR compliance because we come from both worlds.

With us, you get a trusted Human Resources partner that provides custom services to your needs. No bots, no templates: a real expert interaction, with cost-effective and timely solutions for your company. 

Ready to complete the hiring process with your Canadian talent? 

FAQ

Do we need any legal presence in Canada to use your EOR?

No, that’s the main benefit of our EOR service. We act as the legal employer in Canada while you maintain day-to-day management of your employees. You can hire and operate in Canada without establishing a local entity.

The setup process typically takes 30-45 days from initial agreement to employee onboarding. This includes all documentation, compliance setup, and benefits enrollment.

There’s a one time setup fee and then employee fees. We offer volume discounts for multiple hires, with customized pricing available based on your specific needs and number of employees.

We manage all aspects of Canadian payroll and tax compliance, including:

  • Monthly payroll processing
  • Tax deductions and remittances
  • T4 preparation and filing
  • Workers’ compensation coverage
  • Employment insurance contributions
We provide flexible integration options with major HR platforms. While we don’t have direct API integrations, we ensure smooth data flow through secure file transfers and regular reporting in standard formats compatible with your HR systems.

We handle terminations in compliance with Canadian employment laws, managing:

  • Notice period requirements
  • Severance calculations
  • Final pay processing
  • Required documentation
  • You’ll need to inform us of the decision and reason, and we’ll guide you through the compliant termination process.

When you’re ready to establish your own legal entity in Canada, we provide a smooth transition process:

  • Transfer of employment agreements
  • Continuation of service records
  • Benefits transition support
  • Payroll and tax documentation transfer

Apart from the above, our experts help to setup your entity in Canada and manage your back end operations seamlessly.

Canadian Employment Laws are unique, stringent than any other country’s laws. They vary so much from province to province. So, working with Canadian EOR service is the most recommended strategy for global firms expanding to Canada.
As a Canadian-focused EOR, we offer:

  1. Deep expertise in Canadian employment laws and regulations
  2. Established relationships with Canadian benefits providers
  3. Local support and faster problem resolution
  4. Better understanding of Canadian business culture and practices
  5. More competitive pricing for Canadian-specific services

Talk To Our HR Expert