Canada

You can hire in Canada in four ways. Some companies use HQ payroll for short-term situations, and others engage contractors for independent work. Setting up a local entity gives full control but requires ongoing compliance. Another option is working with an Employer of Record, which allows you to hire employees in Canada compliantly without opening a local company. 

Setting up a local company in Canada is relatively straightforward. However, the difficult part comes after the initial setup when the employer needs to run payroll for their Canadian employees every month, file taxes, extend and manage employee benefits, follow changes rules and regulations.

Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Canada, employment is the right structure under Canadian law, covering entitlements like paid leave, CPP, and Employment Insurance. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Canada.

HR compliance in Canada means your policies and procedures respect all applicable employment laws and regulations, which vary by province. When you hire in Canada, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave, annual leave, minimum wage (CAD $15.35-$19.75 by province), working hours, and employment contracts. Following these consistently is fundamental for running the business well.

As with every other country, there are certain costs associated with employing a worker in Canada that come on top of the gross salary you are offering. In Canada, those are pension plan contributions, employment insurance, and employer health tax. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.

An Employer of Record is the legal employer of the individual in Canada for government, tax, and employment purposes. Boundless holds a Personnel Placement Agency licence (AP-2101873), provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as 16-19 weeks of maternity leave. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.

Boundless as the Employer of Record Canada files all pertinent taxes, Canada pension plan contributions and other contributions to the social system in order for the Canada employee to be compliant.

Boundless partners with employment lawyers and advisers in each country we operate in, including Canada. They ensure employment contracts and onboarding documents comply with the local jurisdiction, including provincial variations. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.

The company remains responsible and informs employees of the day-to-day management of the people and teams that are employed through Boundless, including any disciplinary or performance issues.

Boundless ensures compliance with Canadian-specific procedures, practices and labour laws while employing people and teams on behalf of the company.

Any new employee that is locally employed through an Employer of record gets full employment rights and benefits as specified in Canadian employment law. They get a locally compliant employment contract, statutory maternity leave, annual leave, illness benefits, any relevant tax credit, and many more. All Canada-based employees receive healthcare through the public healthcare system.

In Canada, both employers and employees have to pay taxes. For employers, these include pension plans contribution, employment insurance, and employer health tax and for employees, they include Canada pension plan contribution, employment insurance, and income tax. To get a clear overview with both employee and employer taxes, use our salary breakdown calculator.