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Hiring in Canada

Canada? Why?

According to a poll conducted by Envoy Global, more than half of US businesses are considering expanding to Canada or already have a presence there.

According to the study of 529 human resource professionals and hiring managers, 37% of respondents are motivated to relocate to Canada in order to obtain access to or expand in Canadian markets, while 31% cite the possibility to put international talent in Canada as an option to the United States.

"By a two-to-one margin, 52% to 28% of respondents felt Canada's policies are more favorable to employers. It's extremely telling," observes Richard Burke, president and CEO of Envoy Global, a Chicago-based provider of immigration services.

With more businesses shifting operations away from a physical site toward work-from-home opportunities, location – at least within the same or adjacent time zone – is becoming immaterial. Canada, which shares the same language, culture, and time zones as its southern neighbor, but with significantly cheaper labor costs, a more favorable exchange rate, and more relaxed immigration regulations, is likely to become an even more popular alternative for American firms in the future years.

According to a recent Gartner poll of 317 chief financial officers, 74% want to permanently shift at least 5% of their previously onsite workforce to remote work.

Now that hiring locally is no longer essential, Canada immediately stands out as a very tempting choice. While most businesses are unlikely to undertake a full-scale relocation to Canada, when they need to add or replace workers for a remote role, there is no reason to limit their alternatives based on travel distance. If the employment is remote, they can hire from across the border and save on labor expenditures.

Apart from cheaper labor costs, Canada provides businesses like TransparentBusiness a number of additional benefits, including favorable tax incentives and grants, lower turnover rates among knowledge employees, and, perhaps most significantly, high-speed internet connectivity.

Canadian communities have also earned a reputation for specific expertise in recent years. For example, Toronto is believed to be strong in financial services, Montreal is establishing itself as a centre for artificial intelligence, Vancouver is a preferred source of talent for Silicon Valley- based technology companies, and Nova Scotia is rapidly growing its outsourcing sector.

How to hire workers in Canada

If you want to hire Canadians, you have two choices: • Contracting with independent contractors • Recruiting employees

These alternatives become more limited depending on the nature of the work being performed. For example, not all employees can be lawfully employed as independent contractors.

Whichever path you pick, you'll face a decision: Whether you manage the documentation for recruiting a Canadian independent contractor or employee manually or through an employer of record (EOR).

It's more complicated to hire a Canadian as a remote full-time employee. However, if they fulfill the legal definition of an employee—that is, if they do not qualify as an independent contractor as defined above—having them on payroll is legally required.

To hire a Canadian as a remote employee, you have three options: hire them directly, establish a Canadian subsidiary that would operate as the employer, or use an Employer of Record (EOR) service.


Developing a team can take time. Each country has its own set of labor laws, taxes, and mandated employee perks. However, if you use payroll.am to hire Canadian staff, you are in luck. All of our hiring contracts are guaranteed to be compliant with federal and provincial laws.

payroll.am enables you to quickly hire anyone, wherever in Canada. Additionally, you can rest certain that legal specialists will thoroughly analyze your contracts to ensure they are totally compliant, ensuring that your new hires are quickly set up for success.

Hiring in Canada is a solid option for the majority of companies expanding worldwide, as it is an excellent environment to do business, with a strong infrastructure and a diverse talent pool. Additionally, the government has built legislative frameworks to encourage an expanding number of enterprises to hire in Canada and establish operations there. It requires time, money, and effort to establish a branch office or subsidiary in Canada in order to hire employees. Canada's labor law is particularly protective of workers, needing meticulous attention to detail and a working knowledge of local best practices. payroll.am makes entering Canada quick and painless. We can assist you with selecting your desired candidate, managing human resources and payroll, and ensuring compliance with local legislation, all without incurring the costs associated with establishing a foreign branch office or subsidiary.

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