Canada has become a top destination for companies seeking highly educated and skilled talent. The country boasts a robust education system, with many of its universities ranking among the best in the world. In addition, the Canadian government has implemented various programs and policies to attract international talent, making it an ideal location for businesses looking to tap into a diverse pool of qualified candidates.

Also producing 71% of the world’s maple syrup, Canada also has a highly skilled labour force. Canada is the most educated nation in the world, with 64% of people aged 25 to 34 having a higher education degree, making it a desirable location for top talent to relocate.

Businesses are eager to grow in the Great White North because of the region’s bilingualism and educated workforce (20% of the population speaks both English and French).

These prospects have only been enhanced by the transition to remote work, making this the best moment ever to consider hiring in Canada. So, keep in mind these crucial hiring considerations.

Hiring remote employees or independent contractors in Canada

As remote work becomes more prevalent, many companies are looking to hire remote employees or independent contractors in Canada. However, it’s important to understand the legal and tax implications of hiring remote workers in another country.

While hiring in-office staff may be an option if your company already has a Canadian entity and office, it’s crucial to understand that even without either of those, you may still access the best remote talent in Canada. Yet, depending on whether you recruit a full-time employee or an independent contractor, different rules and standards will apply to your global company.

Hours of work
The typical working hours for the majority of employees in Canada are eight hours per day and 40 hours per week, while each province and territory has its own regulations and requirements. Employees are only permitted to work a total of 48 hours per week and are required to take one day off each week.

After a year of employment, full-time employees typically have the right to two weeks of paid vacation, which increases by one week every five years. Additional vacation time may also be included in employment contracts. While there are no mandatory vacation rules that apply to independent contractors in Canada, the employer will have more freedom to decide on any time off when hiring them.

Associated: Paid time off in Canada

Both parents are permitted to take up to 63 weeks of parental vacation, while pregnant employees are entitled to 17 weeks of maternity leave. Because eligible employees who are covered by Canada’s Employment Insurance are given maternity and/or parental benefits, employers are not required to pay salaries during pregnancy leaves.

Pension benefits are also available to employees. All employed Canadians may save money through the Canada Pension Plan. The ratio may differ by province, but as of January 1, 2021, employees, and their employers must each contribute to the pension plan at least 5.70% of their salary. On the other hand, this rate will rise to 5.95% from January 1, 2023.

Employers are not required to withhold government statutory income taxes, like pension plans or employment insurance from independent contractors’ wages, however.

Employers are free to provide employees with benefits above and beyond what is legally required to recruit more talent and differentiate their business from the competition. They include expanded health care benefits and more possibilities for employees to retire. In reality, as an addition to government health insurance, 91% of Canadian firms offer their staff additional health benefits.

Other factors to take into account when employing workers and contractors in Canada

When claiming the proper area or province for remote employees when it comes to payroll and income tax deductions, it’s crucial for a global corporation.

Therefore, the province or territory in which a remote worker is employed will be the site of the employer’s payroll department or payroll records since they are not obligated to report to the employer’s office.

However, the company would need to designate the office address and province as the employee’s place of employment if they work in the office, even on a hybrid schedule. If an employee works two days a week at the company’s office in Manitoba and three days a week at their home in Ontario, the Manitoba address should be utilized for payroll and tax purposes.

It is crucial to complete out the proper province when paying taxes because doing otherwise could cost your company a lot of money in non-compliance fines.

An international employer track record of Canada employing solutions

A worldwide employer of record can help you hire in Canada by allowing you to access the country’s top talent and ensuring that you are in compliance with all applicable laws.

Our employer of record solution in Canada can assist you in navigating Canadian employment regulations and cultural concerns, whether you are just starting to contemplate expanding your staff in Canada or you currently have in-country contractors and are looking to extend their roles legally.


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