Services
Back
From
$299/month
$249/month
2% of gross salary / month
Horizons offers comprehensive Canada Employer of Record (EOR) solutions to ensure your business fully complies with Canadian labor laws and tax regulations. By partnering with us, you can seamlessly hire employees in Canada without establishing a local entity. Tap into Canada’s diverse talent pool across industries such as customer service, accounting services, and software development.
Why Choose Horizons as Your Canada Employer of Record?
Focus on your core business objectives while we manage the complexities of employment in Canada. Partnering with our Canada EOR services is the fastest and most cost-effective way to expand your global footprint.
Note: A Canada Employer of Record is also known as a Canada Professional Employer Organization (PEO).
Hire in Canada, and pay employees through our platform or app.
Our Canada EOR solution is the most affordable on the market.
Fast onboarding in Canada, hire in as little as 12 hours.
We draft labor contracts compliant with Canadian labor law.
We administer all mandatory benefits and contributions in Canada.
It doesn’t stop with Canada — we are an international EOR
If you’re considering starting an EOR arrangement in Canada, you’ll need to conduct a needs assessment and planning to know exactly what kind of arrangement your company needs. Employers in Canada are legally required to adhere to some employment standards that vary significantly across provinces, and this requires planning and having a strategic approach.
For example, employers in Canada are mandated to provide certain benefits to their workers. The Employment Insurance program (EI) requires employers to contribute 1.4 times the employee’s premium rate, with the 2024 employee contribution set at 1.66% of insurable earnings, maxing out at $67,000 in annual insurable income. The Canada Pension Plan (CPP) demands employer-matched contributions calculated at 5.95% of pensionable earnings, with a 2024 annual maximum of $68,500. The workers’ compensation requirements can be complicated as each province operates its own compensation board and contribution rates based on industry risk profiles.
Similarly, employment standards vary across Canadian jurisdictions. Minimum wage rates range from $15.50 in Saskatchewan to $17.50 in Nunavut as of 2024. Work hour regulations also differ, although most provinces set maximum weekly work limits between 40 and 48 hours and each province has its own overtime calculation and compensation methods. Paid vacation benefits also differ across provinces, with some provinces mandating a minimum of two weeks of paid vacation and others mandating three weeks.
These extensive requirements and differences in employment standards across provinces make it important for you to first assess the market and understand the provincial and federal laws before hiring or engaging the services of an EOR in Canada.
When choosing an EOR provider in Canada, you need to evaluate certain factors before making a choice. The ideal provider must be an expert in the Canadian employment scene. They must have worked with several clients in Canada and have a proven record of regulatory compliance, tax compliance, and provincial specialization.
Regulatory compliance expertise requires a deep understanding of federal and provincial employment laws. They must understand the requirements of the Canada Labour Code, the provincial Employment Standards Acts, and the Canadian Human Rights Act. They must also be experts in the Canadian tax system and understand the Canada Revenue Agency (CRA) regulations. They should understand the various provincial tax withholding systems and be able to carry out accurate T4 reports. The EOR provider you choose must also understand the unique employment requirements across different provinces and should be able to comply with region-specific regulations.
You will also need to confirm that your potential EOR provider can simultaneously comply with the federal legislative requirements and the provincial requirements of Canadian employment laws.
At the federal level, labor law compliance cuts across various regulations. For example, the Canadian Human Rights requires employers to avoid discrimination and maintain standards of equal opportunity across all employment practices. The Employment Insurance Act requires that employers have comprehensive worker protection mechanisms that extend beyond monetary contributions.
At the provincial level, each province maintains its own Employment Standards Act and these regulations vary significantly from one jurisdiction to another. Ontario’s maximum working hours, for instance, is set at 48 hours which differs from the 40 hours set in British Columbia. This means your EOR provider must be able to comply with specific regional labor standards.
Next, you will need to negotiate terms and draft a contractual agreement with your EOR provider. The contract must clearly delineate responsibilities between the client company and the EOR. This includes clearly stating the EOR’s responsibilities regarding employment management tasks like payroll management, tax compliance, benefits administration, and potential employment termination scenarios.
During this process, you need to pay specific attention to the reporting requirements of the CRA. The agreement should outline how the EOR will manage tax withholding, T4 slip preparation, and submission of various mandatory employment-related reports. This level of detail protects your company in case of non-compliance issues.
Once you’ve finalized the contract agreement with your EOR provider, you can start the recruitment process. When recruiting in Canada, you must adhere to their anti-discrimination laws and other federal and provincial workforce regulations. The recruitment process must follow all the requirements of Canadian human rights legislation. For example, the legislation prohibits publishing or circulating any form of an employment application or advertisements that express or imply any limitation, specification, or preference based on prohibited grounds of discrimination, such as race, sex, age, religion, or disability.
Furthermore, you may need to secure work permits if you’re working with foreigners in Canada. The process is regulated by Immigration, Refugees and Citizenship Canada. Each visa category comes with specific requirements. For example, you may need to provide labor market impact assessments for certain roles or prove that you couldn’t find suitable Canadian candidates for certain roles.
You will also need to understand the unique recruitment challenges and opportunities the province you’re hiring in offers. The workforce in Toronto differs dramatically from that in Vancouver or Montreal, with each region differing in the skills available and the expected compensation. You may need to have a tailored approach for each province to find suitable candidates.
When bringing a new employee on board in Canada, you’ll need to follow a detailed process. Start by registering the employee’s Social Insurance Number (SIN); this is required for tax reporting and benefits administration. Verify the employee’s legal status and collect accurate personal information such as their date of birth, address, bank account details, and so on.
Next, prepare a comprehensive employment contract. This document should clearly outline job responsibilities, compensation, benefits, and termination conditions. Pay close attention to provincial variations in employment standards, as these can differ significantly across Canada. You’ll also need to register the employee for key government programs like the CPP and EI.
Your EOR provider manages employees’ payroll and taxes in compliance with federal and provincial tax structures. Federal tax rates range from 15% for income up to $55,867 to 33% for income exceeding $246,752. Each province sets its own provincial tax rate, and the rates vary. In Newfoundland and Labrador, the rates range between 8.7% to 21.8%, while the rate in Nunavut ranges between 4% and 11.5%.
The EOR will also calculate, withhold, and remit contributions to programs like the CPP and EI. These typically aren’t simple flat-rate deductions; they are calculated based on employee earnings, with specific maximum insurable earning thresholds that change year to year.
The CRA takes reporting seriously, so your EOR will need to prepare T4 slips documenting all earnings, deductions, and contributions. This must be done carefully, as even minor errors can result in penalties.
Employers in Canada are legally required to offer some mandatory benefits as part of Canada’s employment protection system. One such benefit is the CPP, which covers retirement and disability income protection. Both employees and employers contribute to this scheme. Another is the EI, which offers financial support during job loss, medical leave, or parental responsibilities.
Most employers provide health insurance to supplement the public healthcare system. These packages typically cover prescription medications, dental care, vision services, and additional health provisions. You’ll need to design benefits carefully to meet provincial regulations and also provide meaningful support to employees.
Parental leave is particularly generous in Canada, and it goes beyond simple time off. The EI system allows up to 18 months of leave, with financial support options for standard or extended benefits.
Staying compliant in Canada is an active, ongoing process as employment laws and regulations change frequently. The CRA demands detailed reporting on employee earnings, tax withholdings, and contributions. Your EOR provider must have the technology to handle these reports. They must also be prepared to implement changes quickly when new regulations are introduced.
Each province has its own additional reporting requirements for workplace safety and employment standards. Your EOR must be able to navigate these federal and provincial regulations simultaneously to ensure full compliance.
As the working relationship advances, your EOR provides support in maintaining a productive work environment. They handle performance management in a way that balances your company’s expectations with protecting your workers’ interests. Each province has detailed workplace safety regulations, such as considerations for ergonomic design and mental health support. While day-to-day management remains your responsibility, your EOR helps ensure compliance with provincial workplace standards.
The EOR also handles employee relations management. They’ll create transparent strategies for addressing employee concerns, mediating disputes, and ensuring all interactions are in line with provincial employment standards.
Employee termination in Canada must adhere to federal and provincial laws designed to protect workers. The law mandates that employers provide notice or pay in lieu of notice, depending on the length of an employee’s service. For example, in Ontario, employees with over eight years of service are entitled to up to eight weeks of notice or equivalent compensation.
The law also makes provision for severance pay. According to federal laws, severance pay is typically calculated based on the employee’s years of service. In cases of mass layoffs, additional payments may be required. These calculations must take into account multiple factors, including the employee’s tenure, compensation history, and the specific circumstances surrounding their termination.
Your EOR provider must prepare legal documentation when an employee is dismissed. Each termination document must address statutory requirements, potential severance provisions, and final compensation calculations. This process requires an understanding of both federal and provincial employment regulations.
Our Canada EOR solution enables your business expansion from within Canada.
From our offices in downtown Toronto and Vancouver (stop by for a coffee in case you’re around!), we manage staff recruitment and hiring across Canada, ensuring compliance with all federal and provincial laws.
111 Peter Street, Suite 700
M5V 2H1, Toronto – Canada
Questions about hiring in Canada? Call our Toronto Office: +1 (437) 747-7746
Employment law in Canada is governed by both federal and provincial employment laws in Canada, so you will need to be familiar with everything that is relevant to your location.
A written contract is not a statutory employment requirement in Canada, but using a written contract is strongly recommended: Using a written labor contract ensures that there is explicit agreement on key terms of employment, such as benefits, salary/wages, paid vacation, and so on, reducing the likelihood of dispute at a later point. Furthermore, if there is no written contract in place, the court will read certain ‘implied terms’ into the contract, which may not favor the employer.
Canada is bilingual, with both English and French being used widely. In every province except Quebec (where French is the official language), English is the most common language for employment contracts and would generally be expected.
By partnering with our Canada Employer of Record, Horizons can provide draft employment contracts compliant with the applicable federal and provincial regulations.
6 months max., unless otherwise stated in writing
2 weeks (standard average practice in most provinces)
Ontario: 1 week – 8 weeks, depending on. years of service
Only in Ontario: 1 week’s salary per year of service (starting from 5th year of service)
3 months (standard) 6 months (max.)
2 weeks (standard average practice in most provinces)
Ontario: 1 week – 8 weeks, depending on years of service
Only in Ontario: 1 week’s salary per year of service (starting from 5th year of service)
In general, most employees work a standard five-day week from Monday to Friday. Provincial legislation determines the rules around working hours in each location. For example, in Ontario, the most populous province, the maximum working hours are 48 per week, and 8 hours per day (or the standard workday). Note, however, that this can be extended by agreement between the employer and employee. The other provinces operate similarly (e.g., 40 hours is expected in British Columbia, with any more requiring overtime pay), but it is essential to understand the law in the industry and geographical area you are employing. For overtime, the rules (which are set provincially), generally require around 1.5-2.0x normal pay.
Canada has a number of public holidays for employees. The following holidays are celebrated in Canada, although some only provincially:
| Date | Holiday name |
|---|---|
| 1 Jan Wednesday | New Year’s Day |
| 18 Apr Friday | Good Friday |
| 21 Apr Monday | Easter Monday |
| 19 May Monday | Victoria Day |
| 24 Jun Tuesday | Saint-Jean-Baptiste Day |
| 1 Jul Tuesday | Canada Day |
| 4 Aug Monday | Civic Holiday |
| 1 Sept Monday | Labour Day |
| 30 Sept Tuesday | National Day for Truth and Reconciliation |
| 13 Oct Monday | Thanksgiving Day |
| 11 Nov Tuesday | Remembrance Day |
| 25 Dec Thursday | Christmas Day |
| 26 Dec Friday | Boxing Day |
It’s important to understand what benefits your employees in Canada are legally entitled to or will expect to receive. We set out some of the most important benefits below.
Almost every employee in Canada has the legal right to paid vacation under the federal law known as the Canada Labour Code. Most provinces apply the federal minimum of two weeks minimum paid leave, while a few (e.g., Saskatchewan) offer three weeks. After six consecutive years with the same employer, the minimum increases to three weeks of annual paid leave. Most employers across the entire country will offer between two and four weeks in addition to any public holidays, with the amount of available paid leave increasing with time spent in the job. Employees can also carry unused vacation days into the following years upon negotiation with employers.
Women who have worked for at least six months continuously can access paid maternity leave of up to 17 weeks upon submission of a medical note for proof. This period of leave can start up to 12 weeks before the birth date. Additionally, both parents can access unpaid parental leave of 37 weeks, or unpaid standard leave of 61 to 63 weeks (depending on province).
When terminating employees in Canada, employers are required to adhere to a ‘reasonable’ notice period, or a payment in place of notice. The minimum notice period varies by location, and may be stipulated in an employment contract. Several factors may be considered when determining a ‘reasonable’ notice period, such as the age of the employee, the nature of their role, and so on.
Additionally, employees who are terminated without proper cause can be entitled to severance pay. At a federal level, employees who have worked for more than one year continuously are entitled to either two days of wages per year of employment, or five days wages (whichever is greater).
Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Canada EOR can mitigate risk for foreign companies and provide guidance through this process.
Taxation in Canada is complex and it is another area where both federal and provincial laws apply
Canada operates a progressive tax model, with higher earners paying a significantly higher proportion of their income in income tax. There is a federal rate, which varies from 0% to 33% as of 2022, which includes a portion for pension plans and employment insurance, and an additional provincial rate, which can vary significantly depending on income level and location.
In addition to the federal pension and employment insurance, other tax-funded social programs are run on a provincial basis, with funding taken from income tax and varying by location.
Canada has a social healthcare system which covers residents and workers with most of their necessary healthcare. While the system is primarily funded by federal taxes, a different approach to funding and delivery is taken in each province/territory. For example, Ontario requires specific contributions from both employers and employees: Employees pay an annual healthcare premium ranging from $0 to $900. Employees pay a special payroll tax called the ‘Employer Health Tax (EHT)’ ranging from 0.98 percent to 1.95 percent of employer payroll. The level of coverage varies by province, and some offer more comprehensive cover (such as drug cost and dental), but core medical expenses are covered nationwide by taxes. It is relatively common, but not necessary, for employers in Canada to provide extra health-related benefits, such as dental, life insurance, and so on.
The minimum wage in Canada varies by province and territory, and is subject to regular change. The latest rates are:
| Minimum Wage Country Comparison Chart | (Per month in USD) |
| Alberta | $15 |
| British Columbia | $15.20 |
| Manitoba | $11.95 |
| New Brunswick | $11.75 |
| Newfoundland & Labrador | $12.75 |
| Nova Scotia | $12.95 |
| Nunavut | $16.00 |
| Ontario | $16.00 |
| Prince Edward Island | $13.00 |
| Quebec | $13.50 |
| Saskatchewan | $11.81 |
| Yukon | $15.20 |
Setting up your Canadian benefits and social contribution system, as a foreign employer, is a complicated process. The laws are complex, federal and provincial differences need to be taken into account, and it may be expected that you have representatives on the ground. All of this can make it a lengthy and expensive process.
Outsourcing your Canada benefits management is a fast, simple, and effective way to get everything up and running in full compliance with federal and provincial laws.
Read more about benefits management and administration at Doing Business in Canada.
Horizons Canada Employer of Record can provide expert guidance to help simplify the process of expanding into Canada.
Horizons Canada recognizes how important peace of mind is. We value the health and well-being of our employees. That’s why we’re providing our locally hired staff with access to a quality employee benefits program to support their long-term health and wellness.
Our plan coverage includes:
Canada Employer Of Record Peo
Hire borderless talent with Horizons
With Horizons, you get quick service, transparent pricing, and expert support.
An EOR is a company that acts as an employer in Canada on behalf of foreign clients. They offer employee management services, including recruitment, contracting, payroll management, and human resource administration. An EOR allows businesses to hire in Canada without establishing a legal entity.
First, your company can set up a local legal entity like a subsidiary LLC. This involves registering with the CRA, filing incorporation documents, and establishing a Canadian office.
The second alternative is to hire Canadian freelancers or independent contractors but this comes with risks of potential misclassification of workers.
Another alternative is to hire a Professional Employer Organization (PEO) which offers similar services to an EOR but requires companies to have their own legal entity.
The cost of hiring employees in Canada varies based on roles, experience, and location. The minimum wage ranges from CAD 14.25 to CAD 15.00 per hour, depending on the province. Beyond regular salaries, employers also make mandatory contributions to government programs like the Canada Pension Plan (CPP) and Employment Insurance (EI).
For 2024, CPP contributions are 5.95% of an employee’s earnings, capped at CAD 3,754.45, while EI premiums are set at 1.63% of earnings, up to a maximum of approximately CAD 1,302.39. When all these factors are combined, the total cost of hiring a mid-level employee can range from CAD 75,000 to CAD 85,000 annually.
The EOR is responsible for payroll and tax compliance. They manage income tax withholdings, remit payments to the CRA, and ensure compliance with federal and provincial tax regulations.
The EOR is legally responsible for the employees since they are the legal employer.
Generally speaking, the terms “Canada PEO” and Canada EOR” are used interchangeably.
Yes! We operate with our 100% owned local subsidiary. In addition, Horizons is registered in all ten provinces and three territories.
Our Canada operations are managed directly by our local team who’s based out of our offices in Toronto and Vancouver.
An EOR in Canada can feasibly hire both local and foreign nationals to work in Canada.
However, the ability of Horizons to sponsor your foreign national employee in Canada may be limited due to visa quotas practiced in many countries.
Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.
In most cases, Horizons’ Canada EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Canada.
It is possible to get a work visa in Canada. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Canada are limited, however—get started today to secure your employees’ visa spot.
Recruit, hire and pay remote teams with Horizons
Countries
Curencies
Support
HR Experts
Recruit, hire and pay remote teams with Horizons
Countries
Currencies
Support
HR Experts
Horizons © 2024 – Privacy Imprint & Terms Third-Party Processor GDPR Policy
Recruit, hire and pay remote
teams
without a local entity
We respect your data, and process it according to our Privacy Policy
Holiday Schedule in Canada [2025]
