Hire in Canada
Canada PEO &
Employer of Record
Hire & manage teams remotely in Canada without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Hire Employees in Canada
The NNRoad Advantage ☺
Pay as you go
Global account manager
Employer of Record in Canada
Compliance & Payroll
Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.
Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
On-boarding and off-boarding employees following labor law practice.
Complete payroll solution and benefit administration
Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.
Payment management (Invoicing customers/clients and vendor payments).
Work VISA application assistance, if needed.
Local individual income tax reporting.
Payroll & PEO in Canada
Compliance & Payroll
Registering the necessary company and personnel information for payroll calculation in the payroll software and system
Monthly Payroll Processing
Year-End Adjustment and Annual Declaration
Taxes & Payroll in Canada
Employee Income Taxes:
Employees must also pay a provincial tax which varies by province.
20.5%: $49,021 – $98,040
26%: $98,041 – $151,978
29%: $151,979 – $216,511
15% * 49,020 = 7353
20.5% * 20,979 = 4300
7353+4300 = 11,653
Yearly income tax = $11,653 CAD
Employer Costs in Canada
In Canada, Employer Costs refer to the expenses incurred by an organization for providing compensation and benefits to its employees. These costs may include salaries and wages, bonuses, insurance benefits, pension plans, statutory benefits such as Employment Insurance and Canada Pension Plan contributions, and other non-wage benefits.
Employer Costs are a significant expense for companies in Canada and can significantly impact their bottom line. The amount of Employer Costs may vary based on factors such as the size of the company, the industry, and the type of compensation and benefits offered to employees. Additionally, Employer Costs are subject to government regulations and laws, such as the Canadian Labor Code and tax laws, which may affect their calculation and allocation.
Employers must pay contributions based on the wages of their employees. Employers in Canada are responsible for all payroll costs & income tax processing.
CPP (Canada Pension Plan): 11.4% of employees wages (capped at $64,900) where half is covered by the employer and the other half covered by the employee. Hence, 5.7% for the employer & 5.7% for the employer.
EI (Employer Insurance) premiums: Insurance varies depending on occupation and territory.
5.7% – Canada Pension Fund (CPP) for employees under 70 years old
Benefits & Insurance in Canada
Benefits and insurance are important components of the total compensation package offered by employers to employees in Canada. Benefits can include health insurance, dental insurance, life insurance, long-term disability insurance, and other coverage that help protect employees against various risks and provide financial security. Employers may offer a range of benefits options and employees can choose the coverage that best suits their individual needs. Insurance is also an important component of benefits, offering financial protection to employees in the event of illness, injury, death, or other covered events.
The cost of benefits and insurance is typically shared between the employer and the employee, with the employer paying a portion of the premium. The availability and extent of benefits and insurance coverage can vary depending on the employer and the industry, but they are an important factor for employees when evaluating job offers and considering their overall financial well-being.
It is common practice in Canada that employers offer complementary benefits such as health and dental insurance as well as various saving plans although these are not mandatory.
Working Hours in Canada
Working hours in Canada are regulated by federal and provincial labor laws and standards. The standard workweek is typically considered to be Monday to Friday, with a maximum of 40 hours per week, excluding overtime.
The specific working hours for each job will be outlined in the employment contract or collective bargaining agreement. Employers are also required to provide adequate breaks and time off for meal periods throughout the workday. In Canada, employees are entitled to paid vacation time, with a minimum of two weeks of paid time off per year, as well as statutory holidays. The specific entitlements and benefits may vary depending on the jurisdiction, but they are important considerations for both employees and employers in determining working hours and conditions.
Working Hours Per Week
Normal working hours in Canada are 8 hours per day and 40 hours per week with a maximum of 48 hours per week.
Overtimes is payable after an employee works more than 44 hours per week or 8 hours per day. Some industries, such as retail and hospitality, may require employees to work weekends or evenings.
Termination Laws in Canada
Termination laws in Canada regulate the process of ending employment relationships between employers and employees. Under Canadian law, employees can be terminated with or without cause, but the process must be carried out in accordance with the applicable legislation and regulations.
If an employee is terminated for cause, the employer must have just cause for the termination, which must be based on serious misconduct or other sufficient reasons. In either case, termination must also be done in a manner that is fair and not discriminatory. Employers and employees should be familiar with the termination laws in their jurisdiction to ensure compliance and avoid potential legal disputes.
Ending an employee contract in Canada requires a notice period and/or severance after probation. The notice period varies according to the province. Similar to the USA, Canadian law protects employees from illegal termination such as termination stemming from race, gender, or sexual preference.
If an employee is terminated without cause, they are entitled to notice or payment in lieu of notice, which is based on their length of service with the employer. The amount of notice or pay in lieu of notice required can range from a minimum of one week to a maximum of eight weeks, depending on the jurisdiction and the individual circumstances.
Employment Contract in Canada
Employment Contracts in Canada are legal agreements between an employer and employees in Canada that outline the terms, wages and conditions of their working relationship. These contracts typically include details such as the job responsibilities, wages, hours of work, benefits, and termination provisions.
In Canada, employment contracts must comply with both federal and provincial labor laws, and they can be either written or verbal. It’s important for both employers and employees to fully understand the terms of an employment contract before signing, as it forms the basis of their working relationship and can have significant legal and financial implications.
A written labor contract is not required by law in Canada, however recommended. Except for the province of Québec, where the locals speak French, labor contracts are to be drafted in English. The labor contract in Canada should determine any compensations & benefits the employee will be entitled to.
Probation period in Canada is typically 3 months long, however it can be as long as a year.
Types of Leaves in Canada
In Canada, employees are entitled to various types of leaves to support their health, well-being, and personal responsibilities. The availability and specifics of each type of leave vary depending on the jurisdiction, the size of the employer, and the terms of the employment contract. It is important for both employers and employees to be familiar with the types of leaves available to them.
Sick Leave & Personal Leave
The minimum mandatory paid leave, including sick leave & personal leave, is 2 weeks. This increases to 3 weeks after 5 years of employment and to 4 weeks after 10 years of employment.
The maternity leave length varies by province, but it is on average 17 weeks with an additional 61-69 weeks for parental leave covered by government-paid employment insurance.
Public Holidays in Canada
Public Holidays in Canada are an important aspect of the country’s culture, providing an opportunity for Canadians to celebrate their heritage and traditions. From national holidays like Canada Day and Remembrance Day, to provincial holidays like Victoria Day and Heritage Day, there is no shortage of opportunities for Canadians to come together and celebrate. These holidays are also important for businesses, as they often result in closures and reduced operating hours.
Employees are entitled to 2 weeks paid public holiday days off per year. This increases to 3 weeks after 5 years of employment and to 4 weeks after 10 years of employment.
There are 10 public holidays in Canada:
- New Year’s Day – Jan 1
- Good Friday – the Friday before Easter
- Victoria Day – Monday before May 25
- Canada Day – Jul 1
- Civic Holiday – 1st Monday of August
- Labour Day – 1st Monday of September
- Thanksgiving Day – 2nd Monday of October
- Remembrance Day – Nov 11
- Christmas Day – Dec 25
- Boxing Day – Dec 26