Employer Of Record in Canada

We make it easy and painless to expand your business into Canada. Forget about 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 Canada 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 member of your team. 

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 easily and safely build a presence in Canada, being sure that your staff will be hired in compliance with labor and tax regulations

Table of Contents

Quick Facts

Currency:
Canadian Dollar (CAD)

Capital:
Ottawa

Payroll Cycle:
Weekly/ Bi-Monthly/ Monthly

Language:
English, French

Like America, Canada started as a colony. Also like the U.S. provinces, territories in Canada often have the power to set rules or tax individuals and employers, in addition to the federal regulations.
Canada adopted a policy of multiculturalism “embracing diversity,” It’s the first country in the world to do so.
Section 27 of the Charter states: “This Charter shall be interpreted in a manner consistent with the preservation and enhancement of the multicultural heritage of Canadians.”
Canada’s national winter sport is hockey. In the summer, Canadians get excited about lacrosse.

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

Key sectors of the economy include:

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.

Business Culture in Canada

Expect a warm welcome.

Canada is very welcoming to immigrants, which makes it one of the most multicultural places in the world. Canadians are eager to learn about another person’s culture. For this reason, people from any country can feel they’ve found a home away from home in Canada.

Equality

Women in business and society are viewed as equal to their male counterparts and have the same authority as men. Visiting female executives can expect the same sort of equal treatment, and it is wise for visitors to approach business relationships that way.

Hands to yourself

Canadians are not the touchy-feely type. A handshake with good eye contact is appropriate when meeting someone new. In Quebec, there might be a kiss on the cheek as a greeting, going back to its French roots.

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

Year

2022

Country

Dominion of Canada

Capital

Ottawa

Num. States/Provinces

10 Provinces and three territories, each with their own capitals

Principal Cities

Ottawa, Toronto, Victoria and Fredericton

Language

English and French

Local Currency

Canadian Dollar (CAD)

Major Religion

Christianity

Date Format

dd/mm/yyyy

Thousands Separator Format

99,999,999.99

Country Dial Code

+1

Time Zone

UTC-3:30Newfoundland Standard Time (NST)

UTC-4Atlantic Standard Time (AST)

UTC-5Eastern Standard Time (EST)

UTC-6Central Standard Time (CST)

UTC-7Mountain Standard Time (MST)

UTC-8Pacific Standard Time (PST)

Population

38 million

Border Countries

America

Continental surface

9,984,670 km2

Fiscal Year

April 1 – March 31

VAT %

Newfoundland, Labrador, Prince Edward Island, Nova Scotia, New Brunswick – 15%
Quebec — 5% GST & 9.975% QST
Ontario — 13%
The rest of the country – 5%

Minimum Wage

Differs between provinces, generally $13 – $15/hour

Taxpayer Identification Number Name in the country

SIN

Current President

Justin Trudeau

What you need to know about employing personnel in Canada:

Laws and Agencies that regulate labor relationships

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 Administration

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: Employment Standard

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

they are a member

Work Hours

8 hours in a day in a 40 hour week
(Maximum 48 hours/week)

Basic Requirements

There are no set requirements for what must be in an employment contract

Payroll

Legal Benefits in Canada

Overtime

Overtime pay at a rate of a minimum of 1.5 times the regular hourly wage 

Annual bonus

None required

Health Canada

For federal employees

Vacations or PTO

10 days of paid time off per year
Rises to 15 days a year once the employee has worked for the employer for five years

Leaves of Absence

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

Compassionate care leave –
Unpaid
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.
Employment Insurance (EI) pays benefits to people who can’t work or have lost their jobs due to no fault of their own.
The Canada Pension Plan (CPP) gives monthly payments to people who contribute to the plan during their working years.
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

Nationwide public holidays observed in Canada:

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
Rules for terminating employment:

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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Great talent deserves great benefits. We offer a competitive range of benefits so that you only attract top-tier talent worldwide.

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