Despite the fact that the U.S. and Canada are two separate countries, our lines of business cross borders frequently. So much so that our neighbours in the south hire employees in Canada to help out. Employers in the States have to stay up to date and compliant with the regulations regarding their Canadian employees. 

When it comes to employment and payroll compliance, employment and labour relations could not be more different between the two countries. Consider working with a Canadian PEO to make sure you’ve covered your bases with your out-of-country employees.

What Is a PEO?

Download our free guide on what US companies need to know about paying employees in Canada.

Professional employer organizations, or PEOs, are called upon to help non-Canadian businesses with specific company tasks in Canada. They work on a variety of matters: compliance, payroll, and human resources, and their expertise is both a money and time saver. 

When you hire Canadian employees, you need to know the applicable employment laws, how the pension plans work, what types of benefits they can receive, and how to process payroll.All of these matters ensure you’re paying staff correctly. Working with a Canadian PEO helps minimize the risk of incorrect reporting because their experts are compliant and knowledgeable about business guidelines in this territory. 

PEOs already have the infrastructure and accounts in place to help manage your employees up north. The established presence of a Canadian PEO can get you started faster than embarking on thisactivity alone.

Handling Human Resources

HR management is tied to the payroll department. This friendly side of business takes care of employee benefits, workers’ compensation plans, employee relations, and various training and mentoring programs. It’s a lot of work for a firm that doesn’t have the time to thoroughly read through it.Here’s where you’ll benefit from knowledgeable PEOs. 

Whether it’s an employee dispute that needs resolving, or standard performance reviews that need to be conducted, a PEO has the competence to deal with this properly. It can also provide your company with better access to health and safety benefits, employee retirement plans, and technology. 

A PEO will assure you and your company are in line with the province’s employment act and HR standards. It’ll act accordingly if any issues arise, whether it’s generating employee handbooks or dealing with a work complaint. A PEO has you covered, as it understands the rules at both the federal and provincial level, ensuring your employees in Canada are treated as they should be. 

You already went through the hassle ofinterpreting these standards in your own territory, so why go through it again? Startat square one in Canada with the help of trained professionals.

Tackling Payroll Compliance

Compliance is crucial for managing payroll. You need to make sure you’re paying your employees correctly to avoid penalties and audits by the CRA. Are you familiar with the provincial minimum wage? Have you accounted for the correct stat holiday pay? A Canadian PEO knows how Canadian payroll works, saving you the time and headache of figuring it out and preventing shoddy inaccuracies.

A PEOtakes care of tax filing and remittances, deductions, income statements, and other company reports.All need to be calculated properly for accurate reporting of your Canadian employees. You have to account for pension contributions, unemployment insurance contributions, and workplace accident insurance premiums. There’s also various tax deductions to include: Canada’s Pension Plan, Employment Insurance, and personal income. These are required to verify employee reporting and for accuratefiling and submission by employers.

For a fee, Canadian PEOs will relieve your company of these responsibilities, guaranteeing your company is in the clear. They work to reduce the chance of your business submitting documents with mistakes and make sure your firm meets all the required obligations.