How U.S. Companies Hire in Canada
A comprehensive guide to hiring Canadian talent for U.S. businesses. Learn about your options, compliance requirements, and the most efficient approach to cross-border hiring.
U.S. companies looking to tap into Canada's skilled workforce have several options, each with different requirements, costs, and timelines. Understanding these options helps you choose the best approach for your business needs.
The Hiring Process: Step-by-Step
What to expect when hiring Canadian talent
Choose Your Approach
Decide between EOR, entity formation, or contractor model based on your needs, timeline, and budget.
Set Up Compliance
With EOR, we handle all setup. With entity formation, you'll need to register with CRA and provincial authorities.
Onboard Your Team
Complete employment contracts, collect documentation, and set up payroll. EOR typically takes 24-48 hours.
Manage Ongoing Operations
Handle payroll, tax remittances, and compliance. With EOR, this is all managed for you.
Key Requirements for Hiring in Canada
What you need to know about Canadian employment requirements
Tax & Payroll
Canadian employers must deduct and remit:
- Federal and provincial income tax
- Canada Pension Plan (CPP) contributions
- Employment Insurance (EI) premiums
- Provincial variations (QPP, QPIP in Quebec)
Employment Law
Compliance with provincial employment standards:
- Minimum wage requirements
- Vacation and statutory holidays
- Termination notice and severance
- Workplace safety (WSIB, CNESST)
CRA Registration
If forming an entity, you'll need:
- Business Number (BN) registration
- Payroll account setup
- GST/HST registration (if applicable)
- Ongoing remittance compliance
Why Most U.S. Companies Choose EOR
The Employer of Record model offers the best balance of speed, cost, and compliance
Speed
Hire in 24-48 hours vs. 3-6 months for entity formation
Cost
Lower upfront costs and predictable monthly fees
Compliance
Full compliance handled by experts, reducing your risk
Flexibility
Easy to scale up or down as your needs change
Ready to Start Hiring in Canada?
Our Canadian Employer of Record services make it simple, fast, and fully compliant.
Book a Consultation