Canadian PEO Service

Hire, Onboard and Pay Canadian Employees Quickly and Efficiently

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Papaya Global & Canadian PEOs

Start hiring in Canada – without an entity. Working with a Canadian PEO provider is the quickest and easiest way to build a workforce and run payroll in Canada. A Canadian employer of record (EOR) serves as the administrative back office for your workforce keeping you in full local compliance.

The employees are formally hired by our preferred in-country partners in Canada. Our partners hold the legal liability and handle all of the workforce management responsibilities, including payroll, allowing you to focus on directing your Canadian employees in their day-to-day tasks.

Save on Canadian PEO

With Papaya, you pay per employee, per month. Our pricing model is designed to make it easy for you to plan your workforce spending. No hidden fees, no surprises.

You get ongoing HR support, full benefits management and administration, customized BI reports, and so much more.

See our pricing page for full details

Why Use a PEO

You can enter a new market in Canada with a Global PEO in far less time than it takes to open an entity. The quick turnaround time allows you to compete immediately, which could be a decisive edge over your competitors.

You can see if your product is viable in the Canadian market, or evaluate the local talent pool. Working with a Canadian PEO/EOR is a quick, simple, and low-risk way to test-drive the market before committing long term.

Even if you have already begun the process of creating an entity, there is no need to wait until the lengthy process is finished. On-board workers while an entity is being setup. Switching from a PEO service to legal entity is simple.

Why Hire in Canada?

With high annual growth and low corporate taxes, Canada is an attractive market for any business. Toronto and Montreal have emerged as major business centers, but with lower costs of operation than similar size cities in Europe or the US.

Canada also boasts an impressive pool of talent for any venture. It’s not only close to the US geographically but also culturally and the way people do business, making it easier to get started. No wonder Forbes magazine routinely includes Canada on its list of best countries to do business.

Hire in Canada Today

Taxation in Canada

In Canada, employers are obligated to withhold and remit different types of taxes on behalf of their employees, which include federal and provincial income taxes, employment Insurance (EI) premiums, and Canada Pension Plan (CPP) contributions.

The amount of these taxes is determined by various factors, such as the employee’s income level and province of residence. To ensure compliance with payroll taxation laws in Canada and prevent any possible penalties, it is crucial to remain up to date with the latest tax laws and regulations.

Nevertheless, if employers hire via an Employer of Record (EOR), many of the tax-related responsibilities are managed by the EOR.

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Easy Canadian Hiring

See how Papaya Global can help you hire in Canada without an entity while staying 100% compliant

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FAQs

How does the cost of using a Canada PEO compare to hiring employees directly?

If your company is headquartered in Canada, the better choice is likely to hire directly. But as a company operating globally and seeking to bring on talent in a new country – in this case Canada, working with a PEO is often seen as the more, efficient, cost-effective option. That’s because it doesn’t require you to open an entity, and saves you the trouble that comes with that.

What is the difference between a Canadian employer of record and a Canadian PEO?

In most cases, EOR and PEO are used interchangeably, both referring to cases when an organization manages payroll and HR operations on behalf of the client company, all the while taking full liability for these tasks.

In some countries, though, these definitions may change slightly. In the US, for example, PEO is used to refer to a situation where two companies have a co-employment agreement, where one handles HR and payroll tasks and the other handles core business and day-to-day responsibilities. Under this definition of PEO, both companies have shared liability.

How does hiring through a Canadian PEO differ from hiring as a traditional employer?

If you’re taking on employees in Canada through traditional employment, you’re also taking on the responsibility of learning the ins and outs of the tax and regulatory requirements in the country, as well as the cultural expectations regarding benefits, PTO, and other considerations.

If you’re hiring in Canada with a PEO however, you shouldn’t need to worry about learning all this. Rather, your main priority is to ensure that the PEO (or EOR) of your choice is an expert in this subject matter and can navigate local compliance and payroll so that you don’t have to.

Are there any legal implications or considerations when using a Canadian PEO?

One major consideration when it comes to using a PEO in Canada is the differences in provinces. Provinces in Canada may vary slightly in local tax, payroll, and regulatory requirements. Even cultural expectations and language can differ. It’s important to keep this in mind when you’re choosing a PEO, to ensure the organization’s expertise is tailored to the relevant province.

Does a Canadian PEO assist with immigration and work permits for foreign employees?

For the most part Canadian PEOs can’t assist with immigration and work permits. That’s because there are a lot of provisions and restrictions on PEO providers that makes any assistance difficult. However, a good provider will still be able to offer guidance for companies looking into these topics.

How long can you use a PEO in Canada?

There is no limit on employment for the PEO or EOR model in Canada.

With that being said, if you decide to establish your company more fully in Canada, you may want to consider graduating to a more permanent model of employment.