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Here’s How to Find the Right Canadian Employer of Record

Jan 18, 2023 | Business

To expand your market to Canada or recruit remote workers, you must follow Canada’s employment laws. Getting the help of someone knowledgeable will make the whole process easier. That’s where a Professional Employer Organization (PEO) will come in handy. A PEO, also known as an Employer of Record (EOR), will help you when you are looking to recruit workers in Canada. 

Canada PEO employers of record are not one-size-fits-all, and some will have different needs than others. It’s, therefore, vital to keep your business needs in mind to find the right fit. Here are helpful tips for finding the appropriate PEO in Canada. 

Business Goals With Suitable Employer of Record

The first thing you have to do is to define your business goals for the next five years. Identify if you’ll need to scale up and hire new employees. It could also be that you only want to take advantage of a globalized workforce. Understanding your future needs will make it easy to get a suitable EOR for your business. Some EORs may be in one territory, while others may be global. If you are expanding rapidly, the EOR partner should keep up and have the capacity to process thousands of workers. 

Your Payroll Needs

Once you have your goals, you need to define your payroll needs. The following factors determine your payroll needs.

Number of Workers

As your team grows, your payroll needs become more complex. Payroll is more than just making payments; deductions, bonuses, benefits, and even corrections can be made. Keeping track of a bigger payroll will take a lot of work. The PEO you choose should be in a position to handle the payroll as your workforce grows.

Worker Type

It is also crucial to consider the type of workers you want to employ. Will you hire them on an hourly or salary basis? Will it be flexible or fixed schedules? Some EORs specialize in hourly workers, while others deal with salaried workers.

Salaried payroll is stable since employees only have to log time off for vacations and sick days. Hourly workers have variable schedules that can be extended or shortened. Therefore, if you’ll pay your workers hourly, your Canadian Employer of Record partner must be experienced in processing timesheets and employment standards for hourly workers.

Worker Classification

Every jurisdiction has different tests and rules to classify workers. The EOR partner you choose should provide advice on employment standards advice and basic classification and connect you with more expertise if need be.


Benefits and perks will also help you find the right EOR. Employers of record must deliver benefits such as pharma, medical, life insurance, and retirement savings. The employees cannot be on your existing benefit plan since the EOR acts as a bridge. The PEO should provide the employees with the same benefits. Your EOR partner needs to deliver a benefits package that meets your needs. 

Technical Requirements

Technical requirements are equally as important as payroll requirements. The service provider should deliver what you need since you’ll use their services for a long time. Your employees should download tax forms and make the benefit claims without putting the request to the EOR. The payment schedule is a technical issue. Most EORs have a payroll schedule for each employee, while others have multiple schedule options. If you have an important payment schedule for your business, ensure the EOR delivers it.

Ensure the sensitive data between you and your EOR will be confidential. Please find out how your Canadian employer of record handles data and the security system they have in place. 

Relationship Requirements

There is one more thing you have to consider before choosing the employment of record and making that final decision. The kind of relationship you want with your EOR is a vital factor. It is not about an EOR partner with the most positive vibes or a dedicated account representative, but one who can communicate effectively. You’ll trust the EOR since you don’t have a branch in that jurisdiction. So, ensure you have a partner you can relate well with.

There you have it. You now have what you need to choose the right PEO. We can help with your remote recruitment needs, contact BrightR Limited today.

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