Payroll In Canada Essay

Are you thinking about moving operations into Canada? You may have had a Canadian presence for some time now, but you’ve run into a few issues when it comes to dealing with employment legislation and payroll.

If this describes your situation, you should be working with a professional employer organization in Canada. Here are a few smart reasons to consider working with a PEO for your Canadian operations.

1. They Know the Law

While Canada and the US have many similarities, they are separate countries with different legal frameworks. As a result, things are going to be handled quite differently in Canada than they are in the US.

This becomes even more apparent when you realize the provinces are responsible for much of the legislation around

Since they work in Canada and they deal with Canadian employment legislation across the country, they often have a better working knowledge of the law than your own HR experts. They’ll be able to ensure you stay on the right side of the law.

2. They Understand Taxation and Payroll

Another issue US employers often run into when they have employees in the north is that of payroll and taxation. While both Canada and the US have rules about withholding amounts and sending payroll taxes to the central tax collection agencies, the rules are different in both countries.

In Canada, you’ll deal with the Canada Revenue Agency (CRA), and you’ll quickly notice differences. One good example is how Canada collects for pension programs and employment insurance. Another is the issue of HST/GST. Finally, Canada has different rules about the taxation of particular kinds of income and benefits.

It can become rather complex, but a professional employer organization in Canada is here to help. Much like they have a better working knowledge of the legal framework in Canada, they also have expert knowledge of the payroll regime. They deal with it day after day, unlike your talented HR staff who are encountering these new rules for the first time.

3. Help with