Find your employer of record in Canada

Canada famous place - EOR World Wide
Canada - EOR World Wide

Canada

currency

Canadian Dollar (CAD)

Currency

Payroll_Frequency

monthly

Payroll Frequency

Employer_Tax

0 to 7.91%

Employer Tax

With 2 clicks, start your journey to Hire a contractor or remote employees in Canada without a entity set up.

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Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Ottawa

Canadian Dollar (CAD)

YY/DD/MM

April 1st-March 31st

0 / 5 Star (0 Reviews)

Canada famous place - EOR World Wide

Find your employer of record in Canada

Canada

currency

Canadian Dollar (CAD)

Currency

Payroll_Frequency

monthly

Payroll Frequency

Employer_Tax

0 to 7.91%

Employer Tax

Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Ottawa

Canadian Dollar (CAD)

YY/DD/MM

April 1st-March 31st

0 / 5 Star (0 Reviews)

0

With 2 clicks, start your journey to Hire a contractor or remote employees in Canada without a entity set up.

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Overview

Canadian Dollar (CAD)

CURRENCY

Ottawa

CAPITAL

monthly

PAYROLL FRECUENCY

9

PUBLIC HOLIDAYS

0 to 7.91%

EMPLOYER TAXES

13TH / 14TH SALARY

The 13th Salary in this region is usual and typically given at the end of the year.

Employee and employeer taxation in Canada

Employer

Company Payroll Contributions


** Contribution to workers' compensation. The schedule rate for WSIB insurance is determined by the goods produced, the services rendered, and the procedures, technologies, or materials employed. In 2022, the Schedule 1 premium will be 1.37 Canadian dollars for every 100 Canadian dollars of insurable payroll.

0% - 5.70%

Canada Pension Plan (CPP)

0% - 2%

Employee Insurance Premiums



0% - 7.7%

Total Employment Cost

Employee

Worker Payroll Contributions


**In Canada, there are other applicable worker payroll contributions according to the province where the company locates. Hiring an employer of record Canada firm, will help businesses to know about their responsibilities. Companies that know what is employer of record trust them to perform these activities.

0%- 5.70%

Pension Plan of Canada (CPP) 64,900 CAD is the maximum pensionable income. 3,500.00 CAD in basic exemption per year Maximum contributing income of 58,100.00 Canadian dollars Maximum contribution from the company and employee is 3,499.85 CAD.

0%- 1.58%

Occupational Insurance. Maximum yearly employee premium of 952.74 CAD, annual maximum reimbursable earnings of 60,300.00 CAD.


0% - 7.28%

Total Employee Cost



Canada famous place - EOR World Wide
Canada famous place - EOR World Wide
Minimum Wage in Canada
General

In Canada this changes according to the province. For example, in Ontario, the hourly minimum wage is 15 Canadian dollars, and for students and workers under the age of 18, it is 13 Canadian dollars. The current minimum pay rate established in the jurisdiction where the worker performs the task will be used to determine the minimum wage rate for workers of federally regulated companies. The wage usually appears on the employment contract; consequently, hiring employer of record solutions is essential to provide payments.

Minimum Wage per month

Canada famous place - EOR World Wide

Payroll Contributions in Canada

Payroll Cycle

There are hourly, monthly, semimonthly, and monthly pay cycles. Employees who receive payments on a monthly basis must get their compensation within ten days after the end of the pay cycle. Most companies in Canada decide to outsourcing payroll due to the benefits that it can provide. A payroll outsourcing Canada firm can provide payroll on time and with no issues.

13th Salary

The statute makes no mention of thirteenth salary. With professional employment organization or employer of record payroll services, companies can keep this in mind.

Employee Benefit in Canada

  • Mobile phone, internet, and vehicle allowances.
  • Supplemental health care/dental plans often pay for services or commodities that the Canada's national healthcare program do not cover; such as vision care or prescription medications.
  • Employer private pension contribution (2–6% of base income).

Visa and work permit in Canada

The Temporary Foreign Worker Program is run by the Canadian government and enables foreign nationals to apply to work in Canada for a specific amount of time. The program is offered when a competent Canadian citizen or legal resident is not accessible or not the right fit for the role, and it covers all employment roles and expertise levels. In Ontario, there are both federal (run by the Government of Canada) and provincial (run by the Government of Ontario) immigration programs.

VAT in Canada

GST is assessed at 5% in Canada. The PST rate in Ontario is 8%, making the total GST plus PST rate 13.00%. With employer of record tax implications services companies can take care of this requirement.

Working Hours in Canada
General

The maximum working hours are 8 hours per day, 40 hours per week, with a maximum (with overtime) of 48 hours per week, as stated in the Employment Standards Labor Code. Hiring an employer of record Canada means that you will abide by this law, thanks to their best employer of record services.

Overtime

Employers need to give their workers at least 150% of their usual hourly rate as overtime pay for all overtime hours worked, or one hour of paid time off.


When an employee is summoned to work under unusual circumstances (during downtime or non-working hours), overtime compensation should be provided for at least 3 hours at basic salary, even if the employee works fewer than 3 hours. With employer of record services, companies can stop stressing over this and let them manage the extra payments.

Working Week

From Monday to Friday.

Employee Termination in Canada
Termination Process

Canada's termination procedure is typical. Except in cases when an employer can show adequate cause for termination without notice, it goes according to the grounds for termination under the General Labor Law (i.e. due to misbehavior). 

Notice Period

In Ontario, notice periods are typically in the contract of employment or union contract and are in place according to the reason for dismissal and the length of the employee's service:


  • Up to 2 years of work: 1 week notice
  • 2 to 4 years of work: 2 weeks’ notice
  • 4 to 6 years of work: 4 weeks’ notice
  • 6 to 8 years of work: 5 weeks’ notice
  • 8 to 10 years of work: 6 weeks’ notice
  • More than 10 years of work: 8 weeks’ notice

Severance Pay

Employees must have worked for the company for at least 5 years in order to be eligible for financial compensation. Additionally, the company's payroll must exceed 2.5 million Canadian dollars annually, and more than 50 employees must have been let go in the previous six months as a result of the company's closing entirely or in part. The formula for calculating severance pay uses the usual weekly wage rate for each year of work.


Nevertheless, with the best employer of record services, companies do not have to worry about doing these calculations since the firm does it for them.

Probation Period

In Ontario, the minimum probationary term for a permanent job is typically three months. This can change according to the province. Hiring an employer of record Canada firm can let you know about each one. 

Employee Leaves in Canada
Paid Time Offs

This can change according to the province. For example, after their first year of service and after five years of employment, employees in Ontario are eligible to 2 consecutive weeks of vacation time and three consecutive weeks of leave, respectively.


In the first 5 years of service and after 5 years of employment, employees have the right to vacation pay at the rate of 4.00% of the regular wage rate of pay. Hiring employer of record services Canada, allows companies to know the exact time off according to the province they are in.

Canada famous place - find your EOR
Public Holidays

There are 9 national holidays throughout the year.

Vacation Holidays

There are 14 vacation holidays throughout the year.

Sick Days

An eligible employee is entitled to up to three days of unpaid leave each year for physical illnesses, disability, or medical emergency if they have served for the same employer for at least 3 months. However, this can change from one province to another, the global professional employment organization that helps your company will make sure to provide the right amount of days and compensation.

Paternity Leave

Parental leave includes paternity leave.

Paternal Leave

To attend a baby or adopted kid, parents are eligible to up to 63 weeks of leave. Before the week of the baby's birth or after the child is formally adopted, the parental leave cannot start.


The leave must start 78 weeks before the birth or adoption of the child.

Other Leave

Leaves vary according to the province. For example, in Ontario, workers are eligible for the following benefits:


  • 2 days of required leave after a family member's death
  • A compassionate care leave period of around 8 weeks
  • Up to 3 days of time off without pay for family obligations
  • Family medical leave goes without payment for up to 28 weeks every year.
  • In the event of a serious sickness, leave might last up to 37 weeks.
  • In the case of the passing of an employee's child or in the event that the infant has vanished, up to 104 weeks may be granted.
  • All companies need to give their full-time, regular workers job-protected, unpaid leave so that they can serve on a jury, testify as a witness, respond to a subpoena, or represent themselves in a law court as defendant or plaintiff. A copy of the court summon must be given by the employee to the company as proof of the requirement.
  • Following at least 26 weeks of continuous employment with the same employer, reservists are entitled to up to 20 days of leave without pay per calendar year for yearly training under the Reservist Leave Regulations. The following are justifications for taking reserve leave as an employee:
  • Deployment to a Canadian military operation abroad.
  • Deployment to a Canadian troops’ mission within the country that is aiding with a disaster or its aftermath.
  • Annual training, including travel time associated with it, for up to 20 days per year.
  • Other activities listed as such by the Minister in the Employment Standards Regulation.

Maternity Leave in Canada

 If an employee has worked for the company for at least a year prior to the due date, they are eligible to up to 17 weeks of leave. Maternity leave must start no earlier than the 17th week before the anticipated due date and must terminate no later than 18 weeks later. The worker is eligible for at least two more weeks of maternal leave if the delivery happens after the date she was anticipating.


When there is a chance that the pregnancy will end prematurely or when the pregnancy poses a risk to the mother's or the unborn child's health, special maternal leave may start four weeks before the due date. A medical certificate and two weeks' notice are necessary. These times can change due to the province the company is in. Companies hire a global professional employer organization to keep up with these guidelines.

There are 119 leave throughout the year.

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