Employer of record in Canada
We make it easy and smooth to expand your business into Canada. Forget dealing with local regulations, confusing tax laws, and international payroll management. We take care of all that, so you don't have to.
Accelerate your growth into Canada compliantly and hassle-free
At Serviap Global, we handle all employee onboarding, payroll, compliance, risk, mitigation and benefits, so you can focus on what matters most: your business.
How we can help you expand in Canada
As your EOR in Canada, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Your candidate is hired by a PEO in Canadá provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other team member.
Expand to Canada with Serviap Global
Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity.
In just a few days, you can quickly and safely build a presence in Canada, ensuring your staff will be hired in compliance with labor and tax regulations.
Quick facts
Currency:
Canadian dollar (CAD)
Capital:
Ottawa
Payroll Cycle:
Weekly, bi-monthly, monthly
Language:
English, French
The economy
Canada has a mixed market system. The logging and oil industries are big businesses. The nation enjoys a healthy economy and general success thanks partly to the relationship with the U.S., which shares interests related to a wide range of topics from military and defense, healthy trade, and tourism.
The importance of small and medium-sized companies
Nearly every business in Canada is defined as a small business, a whopping 99.8%. And those SMEs employ about 90% of the nation’s workforce. There’s a lot of potential to grow into medium- then large-size businesses.
Population characteristics
The adult literacy rate is 99%. Known for their politeness and deference to others, many Canadians are also bilingual.
The Organisation for Economic Co-operation and Development (OECD) reports Canada scores above average when it comes to reading, math, and sciences and outspends other member countries for the national budget for education.
Economic opportunities
Canada is known for a stable economy that’s been that way for many years. Forbes reports Canada is both a welcoming business landscape and boasts a highly educated workforce. It also enjoys an abundance of natural resources.
Key sectors of the national economy
- Logging and oil
- Service industries
- Manufacturing
- Natural resources industries
Human talent
Canada boasts millions of STEM (science, technology, engineering, and mathematics) graduates, and according to the Organization for Economic Cooperation and Development, it has the world’s highest educated workforce.
Often Canada’s top tech graduates are hired away to other countries, leaving Canadian businesses to try to recruit from south of the border and around the world.
Canadians are skilled and can hold jobs in transportation, banking, government, construction, and tourism.
Prominent cities for business
Ottawa
Kanata Research Park in Ottawa is where many, mostly high-tech, industries set up their business.
Ottawa is the capital of Canada and an important technology center.
Toronto
Toronto is the fourth largest city in the very large country of Canada. It’s one of the country’s financial hubs and also well known for its entertainment and cultural scene.
Victoria
Victoria is also considered a major business hub. Due to its location, it has an attractive vantage point to access the Pacific Rim and America. It’s well connected with both air and sea links, which keeps it busy.
Fredericton
Two prominent universities call Fredericton home. St. Thomas University and the University of New Brunswick. This city is known for research, especially in agriculture and engineering.
Technological ecosystem
Canada’s technology sector continues to grow. Notably, it’s producing more research and development (R&D) while improving the economy and a larger number of available jobs.
Clean technology ecosystems receive government investments.
Facilities for foreign investment
Canada has trade agreements in place with many other countries (Across Europe, the U.S., and Latin America), plus the availability of skilled workers.
Famously the government makes starting a business pretty simple, whether incorporating a business dealing with construction permits or accessing electricity.
Canada gastronomy: regional and traditional cuisines
Poutine
Poutine is Canada’s national dish, born in Quebec in the 50s. It’s a bowl of crispy french fries that are topped with cheese and meat gravy. Savory and filling and loved by Canadians and visitors alike.
Kraft mac and cheese
Canadians are huge fans of the boxed Kraft Mac and Cheese. Reportedly, each person eats about 3.2 boxes of cheesy pasta each year, making Canada the biggest consumer of the product worldwide.
Butter tarts
Butter tarts are one of Canada’s few completely original foods.
As the name says, it’s a buttery tart of the pastry shell, sugary syrup, eggs, and raisins. Baked until firm on the inside filling and the crust is crunchy.
General highlights
Capital | Ottawa |
States / provinces | 10 provinces and three territories, each with their own capitals |
Principal cities | Ottawa, Toronto, Victoria, and Fredericton |
Languages | English and French |
Local currency | Canadian dollar (CAD) |
Date format | dd/mm/yyyy |
Thousands separator format | 99,999,999.99 |
Country dial code | +1 |
Time zones | UTC-3:30 Newfoundland Standard Time (NST) UTC-4 Atlantic Standard Time (AST) UTC-5 Eastern Standard Time (EST) UTC-6 Central Standard Time (CST) UTC-7 Mountain Standard Time (MST) UTC-8 Pacific Standard Time (PST) |
Population | 39 million (2022) |
Border countries | The United States of America |
Continental surface | 9,984,670 km2 |
Fiscal year | April 1st – March 31st |
VAT % | Newfoundland, Labrador, Prince Edward Island, Nova Scotia, New Brunswick: 15% |
Minimum wage | Differs between provinces, but the minimum federal wage is CAD$16,65 |
Taxpayer identification number name in the country | SIN |
Laws | Brief description |
Constitution of Canada | Gives exclusive federal jurisdiction, in certain industries, over employment matters. |
Canada labour code | Both the labor rights and responsibilities of employers and employees within federally regulated sectors fall under. |
Tax code | Internal Revenue Code (IRC). |
Social security | Both employee and employer must pay social security contributions. |
Key tax and labor authorities
Canada Revenue Agency (CRA & ARC) | Federal agency that collects and administers tax law. |
Minister of Labour | Charged with promoting safe, fair and inclusive work conditions in many workplaces. |
Labor contracts
Legislation | Minimum standards for employees are set out and called “employment standards legislation”. Each Canadian jurisdiction has such standards. |
Contracts | In Canada, an employment contract might be an offer letter, a written contract or a verbal agreement. |
The International Labor Organization | Member |
Work hours | 8 hours daily / 40 hours per week (maximum 48 hours/week) |
Payroll
Overtime | Overtime pay at a rate of a minimum of 1.5 times the regular hourly wage. |
Annual bonus | No required. |
Health Canada | For federal employees. |
Vacations or PTO | Ten days of paid time off per year, 15 days a year once the employee has worked for the employer for five years. |
Employees have the right to paid absences for the following things: | Sick leave: usually unpaid leave Maternity leave: 17 weeks and can be divided up before and after the birth. Up to 28 weeks of compassionate care leave a year. |
Employers contribution or labor cost
Annual taxable income
Over this amount | Not over this amount | Tax % on excess |
$50,197 | 15% | |
$50,197 | $100,392 | 10.5% |
$100,392 | $155,625 | 26% |
$155,625 | $221,708 | 29% |
$221,708 | 33% |
Corporate tax rates
Different among provinces. Based on lower and higher tax rates as well as business limits. Not including Quebec and Alberta.
Disability
Different sources provide disability benefits in Canada. The benefits are aimed at helping workers with their cost of care.
The Workers’ Compensation Board may award funds if the employee is a victim of an accident at work or a work-related illness.
Public holidays
Date | Holiday name |
1 January | New Year’s Day |
Friday before Easter | Good Friday |
1 July | Canada Day |
First Monday in September | Labour Day |
25 December | Christmas Day |
Federal employees get additional annual holidays.
Termination
Type of termination | Brief description |
Justified dismissal | Labor authorities call it “termination for just cause” when an employee has exhibited bad or dangerous behavior or proves to be ineffective or incompetent. |
Unjustified dismissal | Any dismissal under the Canada Labour Code is considered ‘unjust’ unless the employer proves there’s a good reason. Unless there’s proof an employee refused or was unable to complete work duties, dishonesty, or harassment, the worker’s dismissal would be considered unjust. |
Voluntary resignation | An employee can resign after giving the employer a reasonable amount of time before leaving. In legal terms, a voluntary resignation has to reach the level of being “clear and unequivocal.” |
Other forms of compensation upon termination include:
Any employee who has worked for a company for 12 consecutive months may be due severance. Sometimes it is spelled out specifically in an employment contract.
Length of employment | Severance amount |
For each year of service | Two days’ wages, the minimum is five days’ wages. |
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