Payroll Outsourcing in Canada
Canada Payroll Service
No matter where you need it, our team of local experts at GlobalPEO will manage all of your international payroll operations. We get it; coordinating payroll is challenging enough on its own, and can become a logistical nightmare once multiple languages, rules, and regulations are involved.
We are proud to streamline the experience to guarantee compliance and make your global expansion into Canada a breeze.
Learn how Canada’s laws and regulations surrounding taxes will impact your hiring and payroll processes.
Depending on the size of your business and your specific needs, GlobalPEO offers a variety of payroll solutions to make sure you’re covered with full compliance, no matter what.
In order to set up payroll services in Canada, you will either need to set up a subsidiary of your own, or work with an International Payroll company like us here at GlobalPEO.
When setting up an employment contract in a foreign country, there are unique rules and regulations you must follow to ensure full compliance. Learn more about the specific terms that are required for all contracts in Canada.
Canada Payroll Outsourcing Benefits
Canada's Taxation Laws & Regulations
Canada’s social security system allows each individual province to make its own decisions regarding contribution rates. The federal government has nationwide laws governing unemployment insurance, old age security, and provincial social services. Canadian employees are responsible for contributing to the social security system through taxes automatically deducted from their pay on a monthly basis.
Canada operates within a progressive taxation rate system.
The highest federal tax rate for individual employees is currently 33%. Provincial tax rates are applied in addition to the federal tax rates.
Employer Payroll taxes contribute to the Canada Pension Plan and Employment Insurance. There are also childcare benefits that Canada makes available through the social security system, including the Universal Child Care Benefit, Child Tax Benefit, and Fitness Tax Credit.
Payroll Options in Canada
Depending on the size of your company, you can choose between a two primary payroll options to find one that best fits your needs.
Option 1 – Set Up Your Own Subsidiary
Large companies will sometimes decide to handle their foreign employee payroll process on their own. In order to do this, you will be required to set up a subsidiary, register your business in Canada, and have a deep understanding of the country’s taxation, withholdings, benefits, and other local payroll conditions.
Option 2 – Work With an International PEO
When you work with GlobalPEO, our Payroll solutions make things easy by handling all of the administrative and HR duties with the employee. This frees up your business and foreign employees to focus all of your communications on the work itself.
How To Set Up Payroll In Canada
Before you can begin hiring foreign employees, you are legally required to either set up a subsidiary in Canada or work with an International PEO. If you elect to do this on your own, you will need to set up a business bank account in Canada. As a foreign company, you have the option to incorporate either federally or provincially. If you are looking to operate specifically in Quebec, you will need a Quebec Enterprise Number (NEQ).
Entitlement & Termination Terms For Canada Payroll
All companies operating in Canada are required to give employees a reasonable notice of terminate or provide a payment in lieu of that notice. While it differs province to province, there are regulations in place that require employer’s to give employees extended notice depending on their length of service.
Canadian employment contract customarily come with probationary periods that range anywhere from 3 to 6 months. If an employee is terminated during the probationary period, the employer will be required to pay severance to the employee.
Also, employees working in Canada are legally entitled to receive either paid or unpaid time off for bereavement, jury duty, maternity, child care needs, sick leave, and other excused work absences depending on the province.
From providing quick and effective payroll solutions to creating great relationships with your foreign employees, GlobalPEO gives you a top tier International Payroll service at a value unmatched in the industry. With services starting at just $400 per employee, your business can enjoy the benefits of having an expert payroll team without breaking the bank.
Why Choose GlobalPEO?
Global expansion is a great step for your business – and now it’s easier than ever. Setting up your own entity in each country where you wish to operate can be expensive, complicated, and requires deep knowledge of the specific rules and regulations. Let GlobalPEO take care of everything. From International PEO & EOR, Global Payroll and International Recruiting we deliver our exceptional services at an affordable price.