Frequently Asked Questions
Answers to common questions about hiring in Canada, EOR and AOR services, and cross-border payroll compliance.
What information do I need to provide to get started?
To get started, we typically need some basic information about your company, the worker you want to bring on, and the nature of the engagement. A specialist will walk you through exactly what is needed during your first conversation.
How quickly can I get a Canadian worker set up and paid?
In most cases, we can have a worker set up and paid quickly. The timeline depends on your specific situation, but our onboarding process is designed to move quickly without cutting corners on compliance.
Do I need a Canadian legal entity to work with The Payroll Edge?
No. One of the primary benefits of working with us is that you do not need to establish a Canadian legal entity. We handle the employment or contractor engagement on your behalf, so you can bring on Canadian workers without the time and cost of setting up a local company.
What happens after I reach out?
A Canadian employment specialist will personally review your inquiry and follow up with you directly. We take a consultative approach, focusing on your specific situation rather than offering a generic response. You will always be working with a real person who knows your file.
What is an employer of record?
An employer of record is a specialized employment partner that becomes the legal employer of your workers on your behalf. The EOR manages payroll, taxes, benefits, and compliance so your workers are employed correctly and your obligations are fully covered, while you stay focused on directing the work.
When do I need an EOR?
You typically need an EOR when you want to hire employees in Canada but do not have a Canadian legal entity, or when you want to offload the administrative and compliance responsibilities of employment to a trusted partner.
What does The Payroll Edge handle as my EOR?
We handle payroll processing, federal and provincial tax withholdings, benefits administration, and compliance with provincial employment standards. From onboarding to offboarding, we manage the employment relationship behind the scenes so you can stay focused on your business.
Can I still manage my worker day to day if I use an EOR?
Yes. You direct your workers day to day: their tasks, their schedule, their goals. The working relationship stays intact. We handle the employment administration, including payroll, compliance, and all the legal responsibilities that come with being the employer of record.
What is the difference between an EOR and a staffing agency?
A staffing agency finds and places workers for you. An EOR does not source workers — you identify the person you want to hire, and we handle the employment side. The two services solve different problems and can be used together.
What is the difference between an EOR and a PEO?
A professional employer organization (PEO) enters into a co-employment arrangement with your company, meaning you share employer responsibilities. An EOR assumes full legal employer status on your behalf, which is typically the better fit for companies without a Canadian entity.
What is an agent of record?
An agent of record is a company that manages the onboarding, compliance, and invoice processing for your independent contractors. Rather than engaging contractors directly, you work through the AOR to reduce your administrative burden and compliance risk.
When do I need an AOR instead of an EOR?
If the person you want to engage is an independent contractor rather than an employee, an AOR is the right service. An EOR is for employees; an AOR is for contractors. The distinction matters for compliance and worker classification purposes.
What does The Payroll Edge handle as my AOR?
We handle contractor onboarding, documentation, compliance verification, contract administration, and invoice processing. We make sure every engagement is set up correctly from the start and managed properly throughout.
How does an AOR reduce misclassification risk?
Misclassification — treating an employee as an independent contractor — is one of the most common and costly compliance risks in contractor engagements. As your AOR, we verify that each contractor is properly classified and that every engagement meets Canadian regulatory requirements.
Can I use both EOR and AOR services at the same time?
Yes. If you have a blended workforce of employees and independent contractors in Canada, we can manage both under one relationship. Many clients use EOR for their employees and AOR for their contractors.
Can I hire a Canadian worker without setting up a Canadian company?
Yes. This is exactly what our EOR and AOR services are designed for. We become the employer or agent of record on your behalf, so you can engage Canadian workers compliantly without establishing a local entity.
What should I know before making my first Canadian hire?
Canadian employment law varies by province, which means the rules around pay, leave, termination, and benefits depend on where your worker is located. Working with a Canadian specialist from the start helps you avoid common pitfalls and get things right the first time.
How does Canadian employment law differ from US employment law?
The two systems differ in several important ways, including how termination is handled, statutory leave entitlements, and the role of provincial versus federal jurisdiction. Canada does not have at-will employment, and provincial standards vary significantly. A Canadian specialist can walk you through the key differences as they apply to your situation.
How is The Payroll Edge different from other EOR providers?
We are a Canadian-born company with over 25 years of experience focused exclusively on Canadian employment. Unlike global EOR platforms that cover dozens of countries through a portal, we offer direct access to experienced Canadian specialists who know the landscape deeply and provide personal, attentive service at every step.
What does working with a real specialist look like day to day?
When you work with us, you have a dedicated Canadian employment specialist as your point of contact. You can reach them directly with questions, and you will get real answers from someone who knows your situation, not an automated response or a ticket system.
Is The Payroll Edge part of a larger network?
Yes. The Payroll Edge is part of the People2.0 network, which provides workforce solutions in 130+ countries. That means if your needs ever grow beyond Canada, you already have access to a global infrastructure through the same trusted relationship. You do not need to find a new provider or start over. Your connection to People2.0’s global capabilities comes built in from day one.
Can you help me hire workers outside of Canada?
Yes, through our parent company People2.0. While The Payroll Edge specializes in Canadian employment, being part of the People2.0 network means you can expand your workforce into 130+ countries without changing providers. Many clients start with a Canadian hire through The Payroll Edge and later grow into other markets through People2.0, all within the same relationship. If you are thinking about expansion beyond Canada, let us know and we can connect you with the right resources.
