As you prepare to enter the American market for the first time, you’ve been pondering the partners you want on your team. One question keeps coming up over and over again. Do you need an employer of record?

An EOR can help your business in many ways, but before you hire someone on, you want to be absolutely sure you need them. If you see any of these five signs in your business, you’ll know it’s time.

1. You Were Late Making Payroll Remittances

One of the best indicators it’s time to work with an EOR is that your payroll is falling behind schedule. If you ended up paying the Canada Revenue Agency late once or more last year, you probably incurred penalties.

It’s also a sign your Canadian payroll team already has enough to do without adding American payroll into the mix. If you go forward without an EOR, chances are you’ll be accruing late fees on both sides of the border.

Nip this issue in the bud by teaming up with an EOR before you expand.

2. You’ve Faced Penalties or Fines for Employment Policy

Another good indicator it’s time to hire an EOR is having paid fines or other penalties for one or more of your employment policies.

Why is this a sign you need an EOR to help you in the American market? It points to an issue with your compliance. Maybe your HR team already has too much to do, or maybe the technology they’re using isn’t up-to-date or set-up for the new market. Either way, they fell behind on updating policies or had trouble understanding the impact new laws would have.

In the American market, those kinds of mistakes could cost you big time. The average fine for non-compliance is around $30,000 US. Such a hefty price could make or break a Canadian firm trying to get a foothold in the United States.

3. You’re Planning to Operate in More Than One State

Another sign it’s time to hire on an employer of record is the addition of more than one state to your new American operations.

It’s a tough task to learn the legislation about taxes and employment at the federal level, let alone the state level too. The more states you add, the more law codes you’ll need to learn.

In this situation, it’s a wise idea to get help from the experts. EORs are already familiar with the differences in state laws, which means you can get up to speed sooner.

4. Your HR Team Needs to Expand

If your HR team is already feeling the strain of operating in Canada alone, considering a partnership with an EOR is a smart move.

Not being able to keep up with payroll or compliance are just some of the signs your current HR team needs a helping hand. If you’re already thinking about hiring to expand the team for the Canadian side of your business, start researching EORs.

EORs act as an extension of your HR team, helping you complete payroll, deliver workers’ compensation insurance, and more. Hiring an EOR can be a more effective solution for your American expansion than adding new staff members to your HR team, because they already have the expertise and infrastructure you need.

5. You Already Feel Overwhelmed by Expansion

Expanding a business is no small task, especially not when you’re moving into a large market like the US. The experience is both exciting and overwhelming.

If you already feel yourself at a loss as you prepare for expansion, it may be time to call in the assistance of an experienced employer of record. With the right advice, you can navigate the waters of expansion with much more ease.