What Is EOR?

What Is EOR?

An Employee of Record (EOR) is a third-party organization that typically manages the legal responsibilities of hiring workers and handling payroll of those workers for a company interested in global employment.  

Working with an EOR allows employers to focus more on important aspects of their business rather than spending unnecessary time worrying about back-end administrative legalities.  

Canadian Payroll Services is a Professional Employer Organization (PEO) that offers Employee of Record services for international companies looking to hire Canadian employees. Our EOR services help to find you the best fit workers while also keeping your company compliant with Canadian tax and labor laws that you might not be familiar with.  

Employer of Record Services 

The EOR is the employer of the worker but is not involved with the day-to-day operations of the employee’s position within the company they’re working for. Essentially, this means that the EOR “leases” out workers to a business and handles the payroll of those employees. With EOR services, organizations can easily contract workers across borders without creating legal entities wherever their employees are located.  

EORs can be used for many reasons, which include:  

  • Visas and work permits 
  • Employment contracts 
  • Payroll 
  • Benefits administration 
  • Maintaining compliance with local laws 
  • Termination 
  • HR functions, like onboarding and recruitment 

With remote and flexible work arrangements growing so rapidly, EOR services are crucial to employers being able to maintain good candidate experiences and high employee engagement, no matter where their team members are located. 


While EORs and PEOs do have many differences, they are also very interconnected. An EOR offers simple services as listed above, but PEOs typically offer a more comprehensive solution to company issues.  

PEOs Professional Employer Organizations (PEOs) act as a bridge between employer and employee, handling outsourced payroll, taxes, benefits, and compliance issues. Some PEO services specialize in staffing, recruiting large teams, and contracting them out to clients. Others specialize in long- term employment arrangements, focusing on HR outsourcing, including onboarding, training and coaching. PEOs may provide only a handful of services or a more comprehensive solution, depending on their specialization. 

Some international PEOs, such as Canadian Payroll Services, also provide Employer of Record (EOR) services, hiring workers full or part time and contracting them out to their clients. 

Get Started with EOR Services Today 

Engaging a PEO which provides EOR services allows organizations to test new markets, without committing to a new office or create a local entity, or to employ small teams all over the world. The benefits of EOR services are apparent once you start looking into the time and money it will take to do it yourself.  

Canadian Payroll Services offers EOR services for international clients to make sure you have the best fit talent and are compliant with local Canadian laws. As a PEO, we also offer more specialized solutions to other problems you may encounter as you expand your business into Canada. Contact us today to learn how we can help your company expand to Canada with remote Canadian workers while maintaining tax compliance. 

Contact us to learn more about how we can serve your company with EOR services.

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