Employer of Record in Canada vs. the US: What's Different for Employers
Expanding into a new country can give businesses access to skilled talent without requiring them to establish a full local operation. However, hiring employees in Canada and the United States involves different employment laws, payroll requirements, taxes, and termination rules. Understanding these differences is important for employers planning cross-border hiring. A Canada employer of record can help businesses hire workers without immediately establishing their own Canadian entity. The EOR becomes the legal employer, manages payroll and statutory obligations, and helps ensure the employment arrangement follows applicable local requirements. The business generally continues to manage the employee's daily responsibilities and performance. How EOR Models Work in Canada and the US The basic purpose of an Employer of Record is similar in both countries. The EOR formally employs the worker, processes payroll, handles required deductions, manages benefits, and supports employment comp...