Frequently Asked Questions
Professional Employer Organizations (PEOs) are employment agencies that work with you as a partner and act as the employer of record for some or all of your staff. Many companies use PEO agencies like Canadian Payroll Services to manage payroll and employment compliance for remote workers, independent contractors and augmented staff.
Your Employer of Record (EOR) is your legal employer who may then assign you to work for its clients. Many PEOs and even some staffing agencies act as EORs, assigning contractors or employees to work for their clients. EORs handle your payroll and taxes while your client is in charge of your day to day work.
Because your remote worker lives and works in Canada, you do not need to collect or remit US employer taxes for them.
There is no employment at will in Canada. All Canadian workers are entitled to notice of termination, unless there is just cause for an immediate dismissal. Employment standards vary from province to province, including minimum notice periods. It is essential that a notice period be set out in your employment agreement. Without it, a wrongful dismissal case will default to common law which can produce variable, and not always favourable results for employers.
Because your remote Canadian workers will be living and working in Canada, they don’t need US work visas. They are considered to be Canadians working full time in Canada. Read more.
Pregnant parents in Canada can take between 17 to 52 weeks of leave, depending on the province. All parents can take a combined total of 35 weeks of parental leave after their baby is born or adopted, drawing from our national Employment Insurance plan. That benefit amounts to 55% of the worker’s average weekly earnings. Employers are not required to give paid pregnancy or parental leave but they are required to hold positions open for their employee’s return.
Canadian pensions are both public and private. All Canadian workers contribute to the national Canada Pension Plan (CPP), from which they can draw upon when they turn 60. Because this pension is small, however, many Canadians supplement it via private Registered Retirement Savings Plans (RRSP). Employers often choose to match these contributions in full or in part, or offer company pensions.
The Canada Health Act guarantees access to hospitals and physician services to all Canadian citizens and permanent residents. Healthcare in Canada is funded by taxes and administered by the provinces. Coverage of supplemental healthcare, including vision, dental, and pharma varies from province to province.
Freelancing platforms provide a space for workers and employers to connect and sometimes even communicate. Many of them offer payrolling options. However, it’s only through a PEO that you can enjoy a true employee-employer relationship, with all the stability and benefits that come with it. Because of this, PEOs and freelancing platforms sometimes work in concert, one providing back office support, the other providing time and project management applications.
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