20 Best Employer of Record in Canada: Reviewed in 2025
10 Best Canadian Employer of Record Shortlist
Here’s my pick of the 10 best Canadian EOR companies out of the 20 options I’ve reviewed:
Get free help from our HR software advisors to find your match.
Expanding into Canada sounds exciting—until you realize what’s involved. Setting up a legal entity, managing payroll, handling benefits, and staying compliant with Canadian laws can quickly turn into a full-time job (and a stressful one at that).
Luckily, there’s an easier way! Employer of Record (EOR) services take all that off your plate so you can focus on building your team — not navigating red tape.
By partnering with an EOR, you can access Canadian talent quickly and compliantly, while your EOR employees benefit from local support. You'll also gain peace of mind knowing your operations will stay aligned with the Canada Revenue Agency (CRA) and other legal requirements at all times.
Sounds ideal, right? But which Canadian EOR service best fits for your needs?
As a Canadian HR professional, I've created this guide to help you confidently choose the right partner to hire and manage Canadian employees. I’ll also share insights from my experience navigating the Canadian employment landscape, so you know exactly what to expect.
Now, let’s dive into the top options and get you started — faster, and with a lot less hassle.
Market Details for Hiring in Canada
- Capital City: Ottawa
- Currency: Canadian Dollars (CAD)
- Payroll Frequency: Bi-weekly or
Semi-monthly - Official Languages: English & French
- Approx. Population: 41 Million
- Public Holidays: 9 to 13, depending on the province
Why Hire Employees in Canada?
Canada is an appealing destination for hiring remote employees due to its highly educated workforce, strategic location, and trade agreements with major economies, including the US. It’s known for its deep talent marketplace in the technology, engineering, healthcare, and finance sectors. In particular, Canada's healthcare and engineering sectors are globally recognized.
The country offers a diverse and skilled labor pool, which is continually replenished by top-tier universities and research institutions. Cities like Toronto, Vancouver, and Montreal have established themselves as tech hubs, drawing in professionals from around the world. In addition, certain geographic areas of Canada offer access to talent that is bilingual in English and French.
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We've been testing and reviewing HR software + services since 2019. As HR professionals ourselves, we know how critical and difficult it is to make the right decision when selecting a new HR service provider to work with.
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Best Employer of Record Canada: Comparison Chart
This comparison chart summarizes pricing details about for my top Employer of Record selections for hiring Canadian staff to help you find the best EOR service for your budget and business needs.
| Tool | Best For | Trial Info | Price | ||
|---|---|---|---|---|---|
| 1 | Best for rapidly onboarding Canadian EOR employees | Free demo available | Flat rate user pricing, with a free version for businesses with up to 200 people | Website | |
| 2 | Best for budget-conscious remote team expansion | Free demo available | From $25 - $199/user/month | Website | |
| 3 | Best Canadian-based AI-driven EOR platform | Free trial available | From $579/month | Website | |
| 4 | Best for fast support and in-house expertise | Not available | From $29/contractor/month to $499/EOR employee/month | Website | |
| 5 | Best for scaling globally | Free demo available | Pricing upon request | Website | |
| 6 | Best for competitive benefits packages | Free trial available | From $29/user/month | Website | |
| 7 | Best for assessing provincial compliance requirements | Free demo available | From $15/employee/month | Website | |
| 8 | Best for hiring and paying talent in Canada | Free demo available | From $199/employee/month or $19/contractor/month | Website | |
| 9 | Best for quick employee onboarding | Free demo available | From $20/user/month (billed annually) | Website | |
| 10 | Best Canadian EOR for small businesses | Free demo available | From $595/employee/month or $49/contractor/month | Website |
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Guru
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.6 -
Absorb LMS
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.6 -
Mitratech Trakstar
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.3
Reviews of the Best Employer of Record for Canada
To help you find the best Canadian EOR service for you, I’ve described my top 10 selections in detail, including the specific services each provider offers, and how HR teams can use them. I’ve also included 10 more EOR service providers for Canada below if you’d like even more options to choose from.
Deel is a well-established employer of record platform that enables companies to rapidly employ people in 150+ countries, including within Canada.
Deel owns a local entity in Canada that is staffed with legal experts to keep track of regulatory changes, and ensure all legal obligations are met on your behalf. To hire a Canadian employee with Deel, the average onboarding time frame is 1 day.
Why I picked Deel: Deel offers a free employee cost calculator to help you estimate the cost of hiring a Canadian employee. You can compare different employer costs depending on the Canadian province you’re looking to hire in, including a breakdown of all required provincial and national benefits and withholdings.
The well-established business has launched several new offerings over the past year, including global payroll, global mobility support, integrated Slack tools, and advanced integrations.
Deel Key Services:
Deel offers end-to-end management for your Canadian employees covering everything from hiring and onboarding to termination and severance. Their web app is user-friendly and provides a range of features to help businesses manage their Canadian workers effectively, including contract management and expense tracking.
Their integrated contract management function supports advanced customizations such as stipends, signing bonuses, and stock options. You can also use Deel to offer Canadian benefit plans, such as pension plans or RRSP (registered retirement savings plan) programs.
In addition, Deel is known for its fast support. They offer 24/7 customer support and live chat.
Remofirst is a global EOR service provider on a mission to free employers from geographical boundaries so they can build a global team with ease. You can use their EOR platform to hire and manage full-time employees or contractors in Canada, eliminating the need to set up a local entity.
Why I picked Remofirst: If you plan to expand your remote team to different countries, including Canada, Remofirst is a good option to consider, especially if you're on a budget. It offers a flexible approach, allowing you to hire full-time employees or contractors depending on your needs. Plus, Remofirst handles the complexities of Canadian employment law and ensures you're compliant with provincial tax law and employment standards.
Additionally, to simplify your payroll process, Remofirst summarizes and aggregates your EOR invoices for review, showing each EOR employee’s salary in their local currency, including Canadian dollars. They'll automatically calculate your team’s hours, time off, holidays, bonuses, and commissions so you don’t have to worry about it. Remofirst also offers locally relevant benefits packages.
Remofirst Key Services:
Their team of legal experts and HR professionals will ensure your business operations are always compliant with changing Canadian regulations, with compliance documentation accessible at all times through your secure dashboard. Their customer support team is also available 24/7 in case you need additional help. All clients also receive a dedicated account manager as their main point of contact.
On top of their EOR services, Remofirst also provides international payroll and invoice management, global benefits management (including insurance and equity plans, plus time-off management), and employee support with obtaining visas and other immigration documentation. They can even help you with provisioning equipment to your distributed employees around the world.
Borderless AI is an AI-powered employer of record and global payroll platform that helps companies hire, onboard, manage, and pay international employees without setting up a foreign entity.
Why I picked Borderless AI: Borderless AI stands out because it ensures compliance with Canadian labor laws, including federal and provincial regulations. It handles employment contracts, payroll, tax filings, and benefits administration, allowing your company to hire in Canada without establishing a local entity.
Additionally, Borderless AI offers AI-powered tools that automate HR workflows, such as generating compliant employment agreements and answering HR-related questions. Its AI agent, Alberni, can assist with tasks like creating job descriptions and employment contracts, providing real-time support for HR decisions. This automation reduces manual HR work and ensures real-time compliance updates, which is crucial when managing a workforce across different jurisdictions.
Borderless AI Key Services:
Borderless AI offers country-specific onboarding workflows that adapt to local regulations and ensure new hires in Canada are set up compliantly from day one. You also get automated document management, where essential employment documents like contracts and tax forms are stored and organized centrally for both employers and employees.
Another important service is its employee benefits customization, which lets you offer perks that align with Canadian standards and expectations. This includes health insurance, paid time off, and statutory benefits tailored to each province. Borderless AI also provides a centralized compliance hub that’s updated regularly, giving your HR team one place to stay informed about changes to Canadian labor laws, payroll rules, or tax obligations,
Omnipresent is an Employer of Record (EOR) service that helps companies manage global teams by taking care of all the legal and administrative tasks tied to hiring employees abroad. Instead of navigating the complexities of setting up a legal entity in a new country, you can rely on Omnipresent to handle the process.
Why I picked Omnipresent: It covers everything from employee onboarding, local tax contributions, and benefits administration, making sure you're fully aligned with what Canadian authorities expect. With Omnipresent, you won’t have to worry about understanding Canadian employment standards or labor codes — they handle it all with their in-house expertise and quick support.
Their local expertise also extends to managing paid time off, health benefits, and mandatory deductions, so you can focus on growing your business while they deal with the complexities of Canadian labor law.
Omnipresent Key Services:
They handle payroll for your Canadian employees, ensuring that wages are paid accurately and on time, taking into account local currency and tax rules. They also offer guidance on local employee benefits, such as healthcare and pensions, helping you create a competitive package that will attract top talent in Canada.
Another helpful service Omnipresent provides is handling terminations and offboarding processes, making sure they’re done according to local rules to avoid any legal complications. Their platform also gives you access to reporting and data on your Canadian workforce, making it easier to keep track of expenses and manage your team.
Velocity Global is an employer-of-record solution designed for businesses seeking to manage global workforce operations efficiently. It allows companies to scale globally and hire, pay, and manage employees across more than 185 countries while ensuring compliance with local regulations.
Why I picked Velocity Global: I chose Velocity Global because they handle all aspects of payroll, including calculating and filing payroll taxes, withholding and remitting taxes, and issuing tax forms, ensuring your team is paid accurately and on time. Additionally, they manage benefits administration, helping you provide competitive benefits packages that comply with Canadian regulations. They also draft and maintain locally compliant employment contracts and manage terminations and offboarding in accordance with local regulations.
Velocity Global Key Services:
Velocity Global’s services include assistance with calculating employer burden costs, guidance on statutory benefits requirements, and support for navigating local tax regulations. They also offer a centralized platform for payroll data and reporting, secure data privacy and protection, and time and cost savings by handling all aspects of employment in Canada.
In addition to EOR services, Velocity Global can also help you simplify your plans for global expansion through its global immigration services in case you want to move international employees to Canada.
Remote’s global HR solution offers EOR services that simplify payroll, benefits, taxes, and compliance for Canadian workers. You can use their services to hire full-time employees or contractors, and gain local market insights.
Once you’re ready to hire a Canadian employee, Remote can complete their onboarding process in as quick as 2 days.
Why I picked Remote: Remote helps companies compete for talent effectively in the Canadian market by lending access to competitive benefits packages. They can help you offer health insurance, dental insurance, vision insurance, life and disability coverage, and mental health support services for your Canadian employees. Also worth noting, Remote does not add any markup to their benefits premiums or administration costs, making them a cost-effective choice.
Remote Key Services:
Services include global payroll processing, intellectual property and invention rights protection, and Canadian-specific benefit packages that are local and competitive. Their software platform also covers experience reimbursement and time-off requests, which are quick and easy to approve through their online portal.
Papaya Global is an automated, SaaS platform that helps organizations remove barriers to global hiring. You can use their EOR service to hire full-time employees or contractors within any Canadian province.
Why I picked Papaya Global: I included Papaya Global in this list because of their detailed knowledge of local employment regulations for individual Canadian provinces, including British Columbia, Alberta, Ontario, Quebec, and Nova Scotia.
Papaya Global can help your company simplify the process of managing Canadian employees. Enterprises can access Papaya’s state-of-the-art automation, security, and BI without replacing their existing payroll system. Their self-guided tour also walks you through how payroll professionals can use their technology to automate and manage their global payroll quickly and compliantly.
Papaya Global Key Services:
Papaya Global's services include advanced compliance, liability coverage, employee contract lifecycle management, immigration and visa assistance, data security monitoring, and enterprise-grade global payroll processing using an AI-based payroll engine.
Their platform integrates with all management tools, and uses smart technology to eliminate errors and ensure compliance. It also creates a highly visible system for tracking payroll spending and real-time business intelligence (BI).
Skuad is a global HR platform that offers EOR and HR compliance services across 160+ countries, including Canada.
Why I picked Skuad: Skuad provides a comprehensive solution to hiring local employees in Canada without needing to open a Canadian entity. This capability is particularly beneficial for small and medium-sized companies looking to expand globally without navigating the complex administrative and legal formalities of establishing offices abroad.
Skuad stands out from other EOR services thanks to its automated and high-tech platform that offers access to a diverse talent pool of potential new hires. This helps businesses recruit Canadian workers and manage all the legal complexities such as background checks, payroll processing, and other administrative tasks.
Skuad Key Services:
Skuad's services include acting as an Employer of Record (EOR) or Agent of Record (AOR), global payroll processing, employee benefits management, compliance and taxation services, employment contracts automation, talent acquisition, and contractor management. They also offer a unified platform for workforce management that includes localized human resources support, payroll processing in multiple currencies, and advanced analytics for workforce insights.
Multiplier is an employer of record company that provides HR and global payroll services to businesses, allowing them to outsource these responsibilities to a single provider. You can use their services to hire employees based in Canada and comply with changing labor laws and tax policies.
Why I picked Multiplier: Multiplier helps businesses quickly and easily onboard new employees, manage their payroll and benefits, and ensure compliance with local laws and regulations. Their EOR services are very fast, with the ability to employ new talent in less than 24 hours once you've decided which candidate you'd like to extend an offer to. Their 4-step onboarding process is also user-friendly, providing a good experience for your new employees.
Multiplier Key Services:
Their EOR services include payroll processing, tax compliance, benefits administration, and worker's compensation. Their team of local experts, based in their local headquarters in Victoria, BC, provides ongoing support and guidance, ensuring compliance with Canadian laws and regulations. By outsourcing your core HR responsibilities to Multiplier, you can reduce your exposure to the legal and financial risks associated with employing workers in Canada.
Atlas HXM offers innovative companies the tools they need to compete in a global economy. As one of the largest, direct EOR service providers, they believe that businesses should be able to employ whomever they want, wherever the talent exists.
Why I picked Atlas HXM: They're a popular choice across numerous industries, including non-profits, financial services, oil & gas, energy, life sciences, pharmaceuticals, technology, and government, and they can tailor their service offerings to your needs, whether you're a new startup, an SME, or an enterprise organization.
Atlas is committed to widening the margins of entrepreneurship and employment alike. As such, their business model helps startups and SMBs compete on the international playing field—turning commercial innovations into viable global enterprises. In doing so, Atlas brings opportunities to local economies and the people who work there.
Atlas HXM Key Services:
Services include Canadian-specific compliance monitoring, employee engagement and productivity monitoring, Canadian benefits administration (health, dental, vision, and RRSP), and guidance on safety programs to minimize business risks.
Their technology platform is supported by international experts that deliver flexible services to companies wanting to expand across borders, including into Canada. Their services can help you onboard talent, manage compliance, and pay your Canadian workforce without the need for a local entity or multiple third-party providers.
Other Canadian Employer of Record Services
Here are some other Canadian EOR service providers that didn’t make the top list, in case you’d like a few more suggestions:
- Horizons
For a flexible EOR contract with no termination fee
- Globalization Partners
Support for full-time and contractor hiring
- Velocity Global
For offering EOR employees flexible work spaces
- Rippling
For managing IT assets and required compliance training
- Worksuite
For avoiding employee vs contractor misclassification errors
- Oyster HR
For compliant global hiring
- FoxHire
For hiring Canadian healthcare and higher education workers
- Plane
For US-based companies looking to hire Canadian staff
- Safeguard Global
EOR services for NGOs and non-profit organizations
- Mercans
EOR for supporting payments in cryptocurrency
Hiring in Canada: Important Details
Here are some key details to note if this is your first time hiring Canadian staff. Your EOR provider will manage these compliance details on your behalf. However, proactively informing yourself of these details is always recommended before you invest your resources into sourcing Canadian staff.
In Canada:
- Employment laws are determined federally and by province.
- For employees and employers involved in federally regulated industries (e.g., interprovincial services such as transportation, telecommunications, shipping, banking, etc.) the Canada Labour Code applies.
- For all other industries (i.e., those that aren’t federally regulated), provincial or territorial labour standards apply.
- You can hire three types of workers: employees, dependent contractors, and independent contractors. Your Canadian EOR provider can help you determine the best hiring option depending on your needs while helping you prevent employee misclassification issues.
- Employment taxes and payroll deductions include federal and provincial taxes, and contributions to the Canada Pension Plan (CPP), Employment Insurance (EI), and Workers’ Compensation Insurance. Employers must also deduct an Employment Health Tax, which varies by province.
- English and French are the two official languages in Canada.
- Standard working hours are eight hours per day and 40 hours per week, with some provincial exceptions for certain industries (e.g., oil and gas, shipping, trucking, etc.).
- Paid vacation is determined according to provincial regulations (except for federally regulated industries) and often begins with two weeks of paid holidays per year.
- There are five paid public holidays in Canada: New Year’s Day, Good Friday, Canada Day, Labour Day, and Christmas Day.
- Statutory holidays are determined provincially and may include: Family Day, Easter Monday, Victoria Day, Civic Holiday, National Day for Truth and Reconciliation, Thanksgiving, Remembrance Day, and Boxing Day.
- Maternity & paternity leave is governed by federal laws with some provincial variations. During maternity/paternity leave, employees are eligible for compensation from the federal government. Some employers also offer additional compensation to employees on maternity/parental leave, though there is no legal requirement to do so.
- Maternity leave: Employees can take up to 15 weeks of maternity leave from their place of employment.
- Paternity leave: Employees can choose between 35 weeks (standard paternity leave) or 61 weeks (extended paternity leave).
- Paid sick leave is determined by provincial laws. Up to 17 weeks of unpaid medical leave is available according to Canadian Labour Laws.
- Probation in Canada ranges from 3 to 6 months, depending on the province and industry.
- Termination of employment is governed by Canadian Labour Laws and the Canada Severance Pay Law. Employees must be given a notice period ranging between 1 to 8 weeks, or pay in lieu of notice. If terminated, employees who have completed 1 year of service are eligible for severance pay equal to 2 paid days for every year of service prior to termination.
Selection Criteria for Employer of Record Canada
Finding the best EOR services for hiring in Canada meant digging deep into what organizations truly need—like legally hiring Canadian employees, managing payments in CAD, staying compliant with labor laws, offering competitive benefits, and making onboarding smooth.
Finally, I carefully compared service offerings using the selection criteria below to determine which EOR partners deliver the most value for organizations expanding into Canada.
Here are the details I used to evaluate each Canadian EOR provider in this list:
Core EOR Services (25% of total score): To be considered for inclusion in this list, each Canadian EOR provider had to offer the following basic services first:
- The corporate structure to legally and compliantly hire employees in Canada without a local entity
- The ability to manage payroll and taxes in compliance with Canadian regulations and in Canadian dollars (CAD)
- Assistance with offering competitive and locally compliant benefits packages
- Assistance with navigating visa and work permit processes for expatriate employees relocating to Canada
- Robust procedures to ensure data privacy and security that comply with international standards, including the Personal Information Protection and Electronic Documents Act (PIPEDA) and other Canadian requirements
Additional Standout Services (25% of total score): To help me narrow in on the best Canadian EOR services out there, I also took note of any unique or less common services, including:
- Advanced technology platforms that streamline payroll and HR processes while still offering ease of use
- Specialized experience in hiring employees within key Canadian industries
- Services that enhance remote work compliance and employee mobility needs
- Specialized customer support for complex immigration cases
- Assistance with IT requirements, including managing computer equipment, software licenses, and other asset-tracking requirements
- A focus on eco-friendly and sustainable employment practices
Industry Experience (10% of total score): To evaluate the industry experience of each EOR service provider, I considered the following:
- How many years their business has operated in the EOR space
- Any industry recognitions or certifications the provider may hold in international or Canadian HR and payroll functions
- Their depth of knowledge regarding Canadian federal and provincial labor laws
- Their expertise in other markets, including how many different countries they offer local expertise in
- Evidence of a strong track record managing global expansion processes
- The combined experience and credentials of their team members, if available
Customer Onboarding (10% of total score): To get a sense of each provider's customer onboarding process, I considered the following factors:
- The availability of comprehensive onboarding materials, such as fact sheets, guides, FAQ repositories, or other training resources
- Support for integrating the EOR provider's software with existing HR systems
- Direct access to onboarding specialists, customer support, or a dedicated account manager during the setup phase
Customer Support (10% of total score): Since your EOR provider will act as your remote workers' legal employer, it's important to ensure you'll receive timely communications and top-level support. To evaluate the level of customer support each company offered, I considered the following:
- A multilingual support team (specifically English and French-speaking) that serves all Canadian time zones
- Multiple support channels, including phone, email, and live chat
- Evidence of responsiveness and effectiveness in resolving issues, as inferred from customer reviews
- The existence of dedicated account managers to provide assistance as needed
Value for Price (10% of total score): To gauge the overall value of each service, I considered the following factors:
- Transparent pricing models without hidden fees
- Comparative analysis of service offerings versus cost
- Flexibility in service packages to suit different business sizes and needs
Keep in mind that EOR services are complicated, and because of that the price tag can sometimes be high. However, the prices for their services still offer a good ROI considering the complexity of the premium-grade services you're gaining.
Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how happy real users are with a service. To determine this, I considered the following factors:
- Consistently high ratings across various consumer review platforms
- Specific feedback on the ease of use of their Canadian EOR services
- Testimonials highlighting exceptional customer support and problem resolution
Using this assessment framework helped me identify the Canadian employer of record services that go beyond basic requirements to offer additional value through unique services, deep industry experience, smooth onboarding, effective support, and overall value for price.
An employer of record processes invoicing and salaries but reduces complexity by handling simpler payroll types, often focusing on salaried employees.
What is a Canadian Employer of Record?
An EOR in Canada is a third-party service provider that acts as the legal employer for future employees you wish to hire within Canada, while your parent company maintains day-to-day control of your employee's tasks and workload.
As the legal employer, the EOR assumes full legal responsibility for any new hires, including payroll, tax deductions, compliance management, benefits administration, and any other Canadian-specific employee perks.
Using an EOR service is beneficial for companies wanting to hire Canadian staff or expand their operations into Canada since it simplifies this process considerably.
Rather than burdening your HR professionals with the task of becoming experts in Canadian labor laws and regulations, you can outsource these requirements to an EOR in Canada and gain peace of mind that your future operations will be compliant.
EOR vs Legal Entity
If you’re weighing your options between working with an Employer of Record (EOR) or setting up a legal entity in Canada, it’s important to understand the key differences. While both approaches allow you to hire Canadian employees, they vary significantly in terms of complexity, cost, and time to hire.
Here’s a quick side-by-side comparison to help you decide which path makes the most sense for your business:
| Category | Employer of Record | Setting Up a Legal Entity |
|---|---|---|
| Setup Time | Days to weeks | Several months |
| Cost | Pay-as-you-go service fees | High upfront legal, tax, and admin costs |
| Legal Registration | Not required | Required with federal and provincial authorities |
| Employment Compliance | Handled by the EOR | Your responsibility |
| Payroll & Tax Filing | Managed by the EOR | You must register for and manage payroll/tax filings |
| Benefit Administration | Offered through EOR’s plans | You must source and manage benefit plans |
| HR & Onboarding Support | Included in most EOR services | Requires internal HR infrastructure |
| Control Over Operations | Less control over HR processes | Full control over employment practices |
Using an EOR is often the fastest and most cost-effective way to start hiring in Canada, especially if you're testing the market or hiring a small number of employees. On the other hand, setting up a legal entity may make more sense for companies planning a long-term investment with a larger local team.
How to Choose an Employer of Record in Canada
An EOR service can solve many different challenges and simplify the process of hiring and managing Canadian staff. To help you figure out which EOR service best fits your needs, you need to document your specific challenges first.
As you work through your own unique selection process, keep the following points in mind:
- What problem are you trying to solve? Start by identifying the challenges you're trying to overcome, whether that's sourcing Canadian staff in specific geographic locations, managing compliance against CRA requirements, paying employees in Canadian dollars, or offering health benefits to your Canadian staff.
- Who will benefit from the service? Consider who will manage the EOR relationship (i.e., who will your main contact people be in-house?) and how having an employer of record will improve their day-to-day work tasks.
- What is your budget? To evaluate cost, estimate how many Canadian employees you anticipate hiring. Since EOR providers typically charge a monthly fee for each new hire, this will help you anticipate your monthly costs.
- What outcomes are important? Review the capabilities you want to gain or improve, and how you will measure success. For example, you may want to hire employees within a specific province or city, making it easier for them to work together in person as needed. You could compare service providers until you’re blue in the face but if you aren’t thinking about the outcomes you want to achieve, you'll waste a lot of valuable time.
- How it would work within your organization? Consider how the service provider's software ecosystem would work alongside your existing workflows and systems. Would their software framework integrate with your existing HR software, or would you face data management roadblocks?
Remember every business is different — don’t assume that a Canadian employer of record service will work for your organization just because it's popular.
Key Employer of Record Services
In addition to my selection criteria above, I also assessed the depth of the other key services each Canadian EOR provider offered. While each one does have its own unique blend of options, this list covers the core functions every EOR provider should offer:
- Processing and funding payroll: ensuring that your employees are paid correctly and on time
- Depositing and filing taxes: covering all legal obligations regarding deducting and managing local and payroll taxes
- Dealing with timesheets: collecting and processing time records as necessary, including tracking time off requests
- Top talent acquisition: working with the client company to source additional talent from the global market as needed
- Background checks: checking the background of new hires to confirm their credentials and ensure their suitability for their role
- Employee onboarding: helping new hires assimilate into their new company and role
- Managing employment relationships: creating and maintaining appropriate employment contracts for staff members and dealing with any grievances
- Handling workers’ compensation: ensuring legal compliance with all workers’ compensation matters
- Maintaining certificates of insurance: providing an adequate level of cover for all business activities
- Administering benefits: managing and paying out employee benefits as appropriate, including local health insurance for remote workers
- Handling offboarding: dealing with the termination of employment and related matters as per the labor laws of each jurisdiction
Trends in Employer of Record Services
As more businesses expand across borders, the need for efficient, compliant, and user-friendly solutions for hiring employees abroad, and managing international payments, compliance, benefits, and onboarding has never been more critical.
As a result, EOR services have continued to evolve, with an emphasis on technology-driven solutions that offer flexibility, comprehensive support, and innovative features to facilitate global operations.
Here are the most recent trends affecting EOR services and the HR software systems that are used to offer them:
- Immigration Support: There is a growing demand for assistance with immigration services like visa and work permit sponsorships, simplifying global talent acquisition processes for client companies immensely.
- Specialized Services for Diverse Needs: Several EOR providers have begun to offer IP and invention rights protection and equity incentive planning services, to cater to the specific needs of their client companies.
- Enhanced Employee Benefits Packages: There's a growing trend in EOR providers going beyond standard healthcare coverage to offer a full spread of enterprise-level medical and health benefits, stock options, and even one-time benefits like moving bonuses. This trend demonstrates an understanding of the importance of attracting and retaining top talent effectively.
- AI-Backed Knowledge Bases: Some EOR providers (including Deel) are beginning to offer legally vetted knowledge bases or information wikis that use artificial intelligence to surface answers to common questions quickly. This helps customers source details on hiring within a specific country quickly, without relying on human-run support systems.
As the market continues to evolve, these trends are likely to shape the future of international employment, making it easier for businesses to navigate the challenges of global expansion. For a closer look at specific EOR providers that are capitalizing on these trends, I recommend reading our in-depth reviews of Velocity Global, Skuad, and Oyster HR.
Benefits of Using an EOR in Canada
A Canadian-specific EOR service offers many benefits for companies that want to hire top talent in Canada, including:
- They’ve already established a legal entity in Canada
- They’re up-to-speed on the local employment laws and tax regulations in Canada
- They can help you source and hire new talent quickly
- They can negotiate better insurance rates and benefit packages on your behalf
Using a Canadian EOR service is also cost-effective for businesses trying to enter a new market, compared to the significant costs of establishing a new Canadian entity. The latter option involves significant upfront legal fees, plus other costs related to office infrastructure, staffing, and local benefits and insurance coverage.
Costs & Pricing for Employer of Record Services in Canada
EOR services are complicated, which is why the price tag can sometimes be high. Most providers offer a flat rate per employee or contractor hired through their service. However, some only offer pricing details upon request. Either way, the prices for their services still offer a good ROI considering the complexity of the premium-grade services you're gaining.
In general, EOR services in Canada cost between $200 to $800 per employee, per month.
Key factors that can influence the pricing of an employer of record service include:
- Employee Seniority and Role Complexity: The level and nature of the roles being filled can impact the monthly cost. Senior positions or roles requiring special qualifications may increase the price due to higher benefits and compensation management costs.
- Number of Employees: The total number of employees being managed can also impact the cost. In some cases, higher volumes may lead to volume discounts, making per-employee costs more economical.
- Custom Requirements: Any specific needs beyond the standard service offering may also contribute to the monthly cost. This may include customized solutions for recruitment, specialized employee onboarding, or unique compliance requirements, all of which can affect pricing.
FAQs about EOR Services in Canada
If you’ve got specific questions about the requirements to hire Canadian employees or how EOR services work, these answers to frequently asked questions are a good place to start:
What does an Employer of Record do?
An Employer of Record (EOR) service provider is a third-party entity that can help an organization hire a new employee in a country where it has no physical presence. It’s a useful service for businesses that are expanding internationally but don’t have physical offices established yet, or don’t ever plan to establish them. In these situations, the EOR provider becomes the legal employer of your remote staff on your behalf.
In this type of partnership, the EOR service provider deals with local employee-related matters such as managing payroll, deducting taxes, and administering the onboarding process for new employees. This allows organizations to access global talent while reducing their legal liabilities and compliance risks. This is because the EOR company assumes the legal responsibility for your international new hires on your behalf.
If you already have a legal entity established in Canada, but you need some additional help providing HR services to your staff, you may want to consider using a PEO service in Canada instead.
What are the minimum wage requirements in Canada?
In Canada, the minimum wage requirements vary depending on which province your employee or EOR hire is located in. As of April 1st, 2024, the current federal minimum wage in Canada increased from $16.65 to $17.30 CAD per hour. Staying on top of changes to minimum wages is just one of the benefits of working with an EOR.
What are the standard working hours and overtime regulations in Canada?
In Canada, the standard working hours are 40 hours per week, or 8 hours per day spread over 5 days. If an employee works more than 40 standard hours per week, they are entitled to overtime pay.
The rules surrounding overtime arrangements can vary depending on your industry and the province you’re operating in. Tracking overtime for your staff can quickly become a time-consuming process. By working with a Canadian EOR, you can get this hassle off of your desk and give yourself peace of mind.
An Employer of Record service paired with payroll software designed for Canada ensures seamless payroll and compliance management.
What are the public holidays in Canada?
There are five nationwide public holidays in Canada, including:
- New Year (January 1)
- Good Friday (date varies)
- Canada Day (July 1)
- Labour Day (1st Monday in September)
- Christmas Day (December 25)
Many Canadian provinces also celebrate additional statutory holidays where employees are also given time off of work, including:
- Family Day (3rd Monday in February
- Easter Monday (date varies)
- Victoria Day (May – date varies)
- Civic Holiday (August – date varies)
- National Day for Truth and Reconciliation
- Thanksgiving (2nd Monday in October)
- Remembrance Day (November 11th)
- Boxing Day (December 26th)
Your EOR provider can work with you to determine the appropriate holiday dates depending on the province your Canadian staff live and work in.
Do EOR providers offer other types of global HR services?
Yes, most of the time they do. Many service providers in this space also offer professional employer organization services (also known as PEO services), as well as multi-country payroll services.
PEO services are a way of outsourcing human resources to support your international teams. They can help you with international compliance issues, benefits administration, workers’ compensation, and other HR administrative tasks.
Multi-country payroll services make it possible pay remote employees or independent contractors in multiple local currencies within the same unified payroll run. They also manage in-country compliance and tax requirements on your behalf, making the payroll process considerably easier.
What are some of the consequences of non-compliance?
As an organization, you never want to be deemed as non-compliant in the eyes of any government body. The exact rules and regulations will vary according to the jurisdiction you’re operating in, which is one of the main benefits of using an EOR service provider.
If you don’t use an EOR and you do hire international workers, you may quickly find yourself in non-compliance. The consequences of doing so will depend on the severity of the violation, but they could include all of the following:
- Fines and penalties
- Legal actions such as lawsuits or other litigation proceedings
- Corrective measures and compliance orders
- Revocation of business licenses or operating permits
- Reputational damage if the news becomes public (loss of public trust and loss of internal employee respect)
- Increased monitoring and additional government scrutiny
Companies who fail to follow international labor laws cannot simply say they were unaware of the legalities, and hence, didn’t follow them. That’s where an EOR service can really remove a lot of potential risk and liability from the international hiring process.
Are there any risks to using an Employer of Record service?
In the world of business, nothing is ever 100% risk free, and that is true for Employer of Record services as well. While EOR services do offer substantial advantages, here are some of the risks you should also be mindful of as you choose the right partner for you:
Financial risks:
- Hidden costs and service fees: Some EOR providers may charge additional service fees for specific tasks, such as processing documents, onboarding or offboarding employees, or providing additional HR advice.
- Mandatory benefits: Some countries require mandatory benefits for employees. In that case, the EOR will charge you for those benefits in addition to the employee salary and their service percentage, which can add up.
- Currency fluctuations: Exchange fluctuations can impact the cost of payroll and other financial transactions as the strength of a currency you’re using goes up or down.
Operational risks:
- Data security: Since you’re entrusting sensitive employee data to your EOR, you’ll want to consider the strength of their data protection practices and policies, including their incident response plans, IT penetration testing, and data management certifications, such as ISO 27001.
Strategic risks:
- Loss of control: You will need to relinquish some degree of control over the workforce management processes of your EOR employees, which may impact your organization’s strategic decision-making capabilities.
- Brand reputation: Any negative actions, incidents, or practices of your chosen EOR can directly impact your organization’s brand reputation and create a negative employee experience if not handled properly.
Gain Access to the Best Canadian Talent with an EOR for Canada
If you made it this far, I hope you have a better sense of how EOR services can simplify the process of hiring Canadian employees. They're truly a valuable resource, whether you're an enterprise organization looking to snap up the top talent in Canada, or a small business or startup trying to break into the Canadian talent marketplace.
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