Canada
Employer of Record & PEO in Canada
Hire & manage teams remotely in Canada without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Native Language
English, French
Employee Protection
Medium
Payroll Frequency
Biweekly
Capital city
Ottawa
Termination
Easy
Internet
Fast
Currency
Canadian Dollar (CAD)
Immigration
Easy
English Speaking
>80%
Population
38.44 Million
Employment Cost
Low
Cost of Living
High
How NNRoad Employment & PEO Services Work?
NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Canada. Registering a legal entity in Canada as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Canada in full accordance with local labor laws in under a week.
Employer of Record in Canada
Employer of Record (EOR) services are for companies who do not have a legal entity in Canada, but who want to hire in Canada. Employment and full liability are outsourced to NNRoad.
➊ You interviews & select the candidates you want to hire in Canada.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes payroll in Canada in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Canada while NNRoad manages payroll & HR liabilities.
- Recruiting process outsourcing (Optional/available upon request)
- Hiring of and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire)
- On-boarding and off-boarding employees
- Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law
Complete payroll solution and benefits administration with payroll processing and statutory benefits compliance
Payroll & PEO in Canada
Professional Employment Organization (PEO) services are for companies who have a legal entity in Canada, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.
➊ You interviews & select the candidates you want to hire in Canada.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Canada while NNRoad manages payroll & HR compliance.
- Registration of the necessary company and personnel information for payroll calculation in the payroll software and system
- Raw data collection and cleaning including verification of new employee identity and legal status and direct deposit banking information
- Registration of new employee with Canada Revenue Agency for collection and remittance of income tax
- Enrolment of the new employee into optional Employee Group Benefits Plan
- Employee data maintenance including new hire, resign, salary change, retirement, etc.
- Local government bureau registration
- Set up payroll policy, maintenance, and update
- Maintain employee records accordingly to the requirements by local government
Advantages of NNRoad's Canada Employment Services
- With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Canada.
- Pay as you go
- Dedicated account manager – One point of contact for multiple locations
- Employment & termination processing
- Complete payroll solution and statutory benefit according to local laws
- With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Canada.
- NNRoad only works with professional locally licensed partners
- GDPR compliant
- NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
- NNRoad provides foreigner VISA application services, if needed
Employment Compliance in Canada
Taxes & Payroll in Canada
Employee Income Taxes:
Individual income tax rates in Canada are based on progressive tax brackets. Employees muust also pay a provincial tax which varies by province.
Tax Brackets
15%: $0 – $49,020
20.5%: $49,021 – $98,040
26%: $98,041 – $151,978
29%: $151,979 – $216,511
33%: >$216,512
Sample Calculation
Yearly income = $70,000
15% * 49,020 = 7353
20.5% * 20,979 = 4300
7353+4300 = 11,653
Yearly income tax = $11,653 CAD
Employer Costs in Canada
Employer Contributions:
Employers must pay contributions based on the salary of their employees. Employers in Canada are responsible for all payroll costs & income tax processing.
CPP (Canada Pension Plan): 11.4% of employees salary (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.
Employee Contributions:
5.7% – Canada Pension Fund (CPP) for employees under 70 years old
Working Hours in Canada
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.
Benefits & Insurance in Canada
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.
Termination Laws in Cannada
Severance
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.
Public Holidays in Canada
Public Holidays in Canada
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
Employment Contract in Canada
Employment Contract
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
Probation period in Canada is typically 3 months long, however it can be as long as a year.
Types of Leaves in Canada
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.
Maternity Leave
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.
Immigration Laws in Canada
Foreign workers can be granted a work visa in Canada by fulfilling the following requirements:
- Have proof that you will leave Canada on the expiry of your Work Permit
- Have proof that you have enough funds to support yourself and your family during your stay in Canada
- Have a clean government issued criminal background check
- Have good health (medical examination may be asked)
- Have not been hired by an employer listed as ineligible to receive foreign workers by the government
