Employ Candidates Compliantly in Canada

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  1. Overview:Canada
  2. Global PEO and Payroll
  3. Global HR Compliance
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global Employer of Record in Canada

9 Global Employment Challenges to Consider

If you’re thinking about expanding your operations to a global level, you’ll want to consider all the details that go into that decision. That includes everything from choosing the most cost-effective country and the right entity type to preparing for the challenges of doing business across borders. Choosing a location that works with your overall strategy and offers lower taxes could be one way to help improve profitability.

As you prepare to expand internationally, it’s crucial to understand how each factor impacts the overall success of your business. Here are some global expansion challenges.:

  1. Every country in the world has its own set of unique laws for businesses.
  2. The legislative and regulatory landscape is ever-evolving. Keeping track of changes is cumbersome.
  3. Global HR Compliance challenges
  4. Need to understand and keep track of ever-evolving local labor laws and tax regulations across multiple jurisdictions
  5. Need to understand the local labor market
  6. Need to understand local business practices pertinent to employment
  7. Need to adhere to the company’s global employment policies
  8. Need to understand local competition and benchmark against standard business practices
  9. Working with different languages, time zones, customs, and cultures.

No matter which countries you expand to or what type of operation you open, there are some significant issues you will always have to deal with. 

Global expansion decisions come with a lot of moving parts. The decision to expand internationally can significantly impact your business, so it’s essential to make sure you handle it correctly.

What Is a Global Employer of Record (EOR)?

Whereas traditional solutions would require a company to establish a legal entity in a foreign country, hire employees, and then manage their employment-related needs, a Global Employer of Record (EOR) solution allows companies to hire employees from anywhere in the world and manage their employment needs at one central location.

A Global Employer of Record (GEO) is a company that helps multinational businesses find and hire employees from around the world. As more and more businesses look to expand their operations globally, GEOs have become an increasingly popular solution for managing international employment.

When a company expands its operations overseas, and in Canada, it may choose to use a Global Employer of Record to remove the administrative burden of HR from its staff.

Global EOR Helps Test Foreign Markets without Local Incorporation

As a business owner, you may feel overwhelmed by the tax implications of expanding your business overseas. However, new ideas exist to reduce complexity and ease the burden on busy entrepreneurs. In this article, we’ll explore some of the best ways to reduce the complexity of tax planning for international expansion.

If you’re thinking about using a Global Employer of Record (EOR) talent engagement model for your business, it’s becoming increasingly popular. Here’s how it works: a third-party company operates a local entity in each jurisdiction where it offers services. This can be a great way to comply with various laws and regulations.

Here’s how the Employer of Record arrangement works. A new business owner approaches a global EOR company with the intent of hiring a remote worker based in a different jurisdiction. Rather than the business owner having to establish a new company or register a branch in Canada, the employee can be employed by our local EOR company in Canada. All attendant costs associated with this arrangement are then charged to the client company for a fee. This can be a more efficient and cost-effective way of doing business for both the employer and the employee. Many start-ups like this idea because it gives them the flexibility to focus on getting their business up and running.

Global Employment Services in Canada

Businesses in the process of expanding globally often face challenges when it comes to compliantly onboarding employees in foreign countries. In most cases, legal compliance requires the establishment of a legal in-country business entity, a complex, costly, and time-consuming process that many employers are not ready to undertake in Canada.

To help your organization legally onboard and payroll a workforce in Canada, Acumen International offers a global employment solution via our Global Employer of Record / EOR designed to help you circumvent the legalities of direct hiring, eliminating the need for you to establish a legal entity in Canada to conduct business there.

Global Employment Cycle — Recruitment. Onboarding. Management. Retention. Termination

Compliance and legal guidance at every step of the Global Employment Journey. 24/7 local support.

1. Recruitment 2. Immigration 3. Checks 4. Onboarding 5. Payroll Administration 6. Working Time & PTO Processing 7. Benefits Administration 8. Tax Administration & Reporting 9. Offboarding
Talent skilled in highly-specialized areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and tax filing requirements Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions By mutual agreement
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Dismissal – by the employer
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting. Final settlement & severance payments.
Additional leave Bonuses & Equipment provision De-registration with statutory bodies.
Expenses reimbursement & business trip processing
Health insurance, dental treatment

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Benefits of Global Employer of Record in Canada

  • Fast and compliance talent onboarding
  • Payroll administration
  • Tax reporting and administration
  • Higher talent retention
  • Lower costs compared to local entity setup
  • Comprehensive benefits packages at competitive prices
  • employment contracts 100% compliance 
  • Employment law and tax compliance
  • 24/7 in-country HR support.

Global Employment Challenges Acumen Global EOR Helps Address

1. Compliance

  • Compliant hiring and payroll in 190+ countries
  • Ongoing monitoring of legal, firing & firing regulations
  • Tax & benefits guidance
  • Continuous labour, tax, payroll, and immigration compliance monitoring & updates.

2. Risk Control

  • Permanent establishment risk
  • Worker misclassification risk
  • Under-taxation risk
  • HR & immigration compliance risk
  • Intellectual property right risk.

3. Need for Local Incorporation

  1. Outsourced HR support upon new market testing
  2. HR arm upon global expansion
  3. Business in transition – M&As, close-downs.

4. Employee Transfer

  • From PEO to PEO
  • From EOR to EOR
  • From legal entity to legal entity
  • Convert Independent Contractors to full-time employees.

5. All-in-one Solution

Acumen Global Employer of Record offers integrated global employment solutions under one roof and can replace multiple vendors, including:

  1. Payroll Company
  2. Employee Benefits Broker
  3. HR Consultants
  4. Background Checks Vendors
  5. IP Attorney
  6. Tax Advisor
  7. Translation service
  8. Legal Advisor
  9. Immigration Advisor
  10. HR Compliance Advisor.

6. Global Knowledge. Local Expertise and Support

  • Faster time-to-hire with streamlined paperwork and communication
  • One platform to onboard and manage all team members
  • Streamlined global payroll
  • Single source of truth for contracts and documents
  • Dedicated customer service
  • 24/7 local support
  • Simplified hiring for Full-time employees and contractors
  • Expertise with hiring and firing local and foreign workforce.

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Advantages of Partnering with a Global EOR in Canada

1. Reduced time spent on HR procedures, paperwork, and compliance

Outsourcing these operations to a Global Employer of Record in Canada allows more time for strategic decision-making and business growth. Global PEOs are responsible for payroll, withholding and paying payroll taxes, managing compensation and benefits coverage, and providing HR compliance guidance.

2. Employment management cost control in Canada

Payroll, benefits, taxes, employee leaves, holidays, and social contributions are centrally managed by one trusted global EOR (Employer of Record) partner at competitive rates. By working with a global EOR, businesses can take advantage of the consolidated employment relationship that can free up time and resources better spent on strategic decision-making and business growth.

3. Expert guidance on employment and tax legislation in Canada

The professionals at your Global EOR can provide expert advice on employment law and dispute resolution in Canada. Case studies show that a professional GEOR partner can deliver a value of more than $2 million per year per client through efficiency gains and reduced non-compliance risk.

The Global EOR becomes a co-employer of the organization’s employees, and PEO shares the employment responsibilities of the client organization. PEOs assume many administrative and HR compliance tasks that businesses would otherwise have to handle, giving business owners and management teams more time to focus on running their companies.

4. A Comprehensive Global Employment Service Portfolio – All Services Under One Roof

Global Professional Employment Organisations can provide valuable services, such as immigration support and expertise that businesses might not be able to access independently. Using a PEO can be a great way for businesses to improve efficiency, save time and money, and gain access to valuable resources and expertise.

Our experienced HR professionals are here to help with the many challenges of international expansion. From creating a successful employment strategy to providing guidance on proposed countries’ modes of entry, we can help you get started in your new venture. With our expert advice, you’ll be able to create compliant agreements and policies and ensure a smooth transition for your employees.

5. Payroll Calculations: Country-specific Requirements

In many countries, payroll calculations vary significantly. For example, employees in some countries may receive a 13th and 14th-month salary halfway through the year or at Christmas as standard. Thus, it’s essential to be aware of the payroll practices in your country of employment, such as Canada.

Some countries have different rules when it comes to employment contracts. To avoid surprises, it is crucial to understand how payroll calculations work in your new country. And it it where a Global Employer of Record can help. In some cases, you may be responsible for paying your employees for the entire contract duration even if they are not performing as expected or you want to end their employment early. This can be a financial shock to foreign employers who are not used to this practice.

For this reason, it is essential to ensure that you review and understand the terms of the employee’s contract before hiring them so you know what to expect.

Global Payroll Calculator Helps You Streamline Global HR Operations

We’ve done the global payroll and tax math and compliance for you by creating the Global Payroll Calculator.

  1. Eliminate the time-consuming and costly process of doing your manual calculations.
  2. Gain instant access to up-to-date salary cost breakdowns based on local tax laws and regulations and updated in real-time with the latest employment and tax legislation changes across 190 countries.
  3. Stay compliant on all international payroll matters, including local taxes, labor rules, and benefits.
  4. Minimized the risk and global cost-of-hire.

Spotlight on Canada

Canada is a country in the northern part of North America. Its ten provinces and three territories extend from the Atlantic to the Pacific and northward into the Arctic Ocean, covering 9.98 million square kilometers (3.85 million square miles), making it the world’s second-largest country by total area. Its southern border with the United States, stretching 8,891 kilometers (5,525 mi), is the world’s longest bi-national land border.

  • Capital: Ottawa.
  • Population:35,881,659.
  • Local currency: Canadian dollar.
  • Most developing industries: Canada has six vital primary industry sectors: renewable energies (mainly wind, the country is a net exporter of energy); the forestry sector, hydrogen and fuel cells, mines, metals and minerals, fishing, oil , and gas.

Employ your Selected Workforce via Acumen Employer of Record (EOR) in Canada

As a Global Employer of Record services provider, Acumen International helps businesses to legally engage and pay their selected highly skilled professionals in Canada.

Businesses desiring to hire local employees should be prepared to pay competitive salaries to attract and retain the most qualified candidates. Acumen International serves both end employers and service companies representing international clients as a global employment organization.

Acumen’s Global employment services are designed to provide our clients with professional assistance to meet their global HR needs, such as:

  • Global talent acquisition and retention
  • Global expansion to help you quickly enter new global markets without legal and HR compliance risks
  • Local support for international clients and their ex-pat employees

Acumen’s Employer of Record / EOR service in Canada offers an efficient and inexpensive alternative to direct hire. Our employer of Record solution gives companies the opportunity to operate in Canada and in 190 international markets where we serve our clients without registering as a local business entity.

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Onboard and Payroll Hybrid Workforce in Canada via Acumen Employer of Record

Acumen’s EOR global employment solution helps businesses overcome legal challenges by hiring and compensating your local and ex-pat workforce in Estonia on your behalf risk-free and cost-effectively.

If you want to reinforce your internal team with the expertise of Canada-based global talent, or if you have already selected a local candidate to work remotely and in full legal compliance in Canada, our global EOR solution is the ideal choice.

You can trust Acumen to handle your workforce management’s global employment and HR details in Canada to ensure full compliance with in-country employment laws.

Acumen’s Global Employer of Record (EOR) solution was designed to help international companies like yours expand their global reach and engage the brightest global talent for their projects.

In addition to legally onboarding local citizens, we can organize work permits and business visa sponsorship for your expatriate team via our Global Employer of Record and employ them on your behalf once legal permissions have been attained.

Partner with Acumen International, and let us help you handle your global employment and HR needs. With Acumen, you can rest assured that all legal requirements are met for compliant hiring and compensating your local and expatriate employees in Canada and 190 countries where we serve our international clients.

Reduce risks while expanding your business without establishing your legal entity in Canada. Leave it to Acumen to hire and compensate your employees on your behalf, so you can focus on growing your business.

Trust us to handle the global employment and HR side of your workforce management in Canada, so you are sure that none of these nuances are missed and that your employees are employed and payrolled properly and compliantly on your behalf.

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