Hiring internationally and expanding into new markets can bring great benefits to your business but understanding the rules of those new markets isn’t easy! US companies looking to hire in Canada have two options: create a subsidiary, register their business for taxes, and then set up payroll; or engage an international EOR to handle hiring, compliance, and payroll for them.
Working with an EOR that’s international allows businesses to expand their team across borders, while staying focused on their core business. Canadian Payroll Services is an international EOR dedicated to helping our clients expand into Canada. We provide payroll and human resources services to clients of all sizes in the US, UK, EU, Australia, and beyond!
What Does an International EOR Do?
What Is an International EOR Company?
An international EOR company is a Professional Employer Organization that provides a range of payroll and HR solutions to companies hiring outside of their home countries. International EORs provide local expertise to ensure that employers hire compliantly and that all employer obligations are fulfilled, and advice on the local talent market and culture.
What Services Does an International EOR Provide?
- Employee Leasing: International EORs provide Employer of Record services that allow companies to hire without opening a local subsidiary. The EOR hires the worker or workers and then leases them back to their client, who manages their day to day. The EOR ensures that workers are hired and payrolled compliantly and handles all tax obligations.
- Payroll: International payroll is complicated! EORs provide local payroll expertise and processes so that companies don’t need to struggle learning local employment and tax law. They may provide an automated “set and forget” payroll, or a managed service that includes expense processing and compliance advice.
- Benefits: International EORs provide their expertise on creating competitive benefit packages for single workers and teams. EORs that hire workers, rather than just payroll them, can provide corporate style benefits to businesses of all sizes, including health and dental, life insurance, and health spending accounts.
- Human Resources: Employment law differs greatly from one country to another. International EORs advise their clients on local employment and tax law and HR matters including offer letters, vacation and time off, hiring and termination, employment letters, and travel support.
- Recruiting: When it’s time to expand your international team, EORs provide local recruiting services including sourcing, interview and negotiation support, and offer management.
Benefits Of Working with International EORs
International EOR companies provide a range of services, all designed to solve one challenge: expanding across borders is difficult, expensive, and requires deep expertise that rarely exists within the company seeking to expand. International EORs simplify the process so that companies can stay focused on their core business.
- No Local Subsidiary: Opening a local subsidiary is a complex process that comes with long term tax obligations. By working with an international EOR, companies can hire across borders, without having to open a local subsidiary or registering a business.
- Avoid Tax Errors and Fines: Payroll taxes vary between and within countries and staying compliant with them is a major challenge for employers. EORs handle all employer tax obligations, including deducting and remitting taxes on behalf of employees, keeping records, and producing annual forms.
- Avoid Payroll Errors and Lawsuits: Employment law is complex and constantly evolving, and the cost of errors and violations is high. International EORs are experts in federal and provincial (or state) employment law and provide locally compliant contracts and advice.
Work With an International EOR Today
Expanding internationally can be difficult. Creating a subsidiary and navigating employment and tax laws are hurdles that companies struggle to get over without expert help. Working with an EOR that’s international allows you do it with grace. Canadian Payroll Service takes the stress out of international expansion, so that you can hire with confidence in Canada.
