How Does the Canadian Hiring Model Work?

The Employer of Record (EOR) model allows U.S. companies to hire Canadian talent without forming a Canadian entity. Here's how it works, step by step, and what it means for your business.

The Employer of Record (EOR) model is a streamlined approach to cross-border hiring that eliminates the complexity of international employment. Instead of forming a Canadian company, registering with tax authorities, and managing compliance yourself, an EOR acts as the legal employer while you maintain full control over day-to-day work.

How the EOR Hiring Model Works

A simple, transparent process from start to finish

You Find the Talent

You identify and select the Canadian professional you want to hire. You conduct interviews, evaluate skills, and make the hiring decision—just like you would for any employee.

We Become the Legal Employer

InfraDev enters into an employment contract with the candidate as the Employer of Record. We handle all Canadian employment compliance, legal obligations, and administrative requirements.

You Manage the Work

You maintain full control over day-to-day work, project assignments, performance evaluation, and team integration. The employee works for you, reports to you, and delivers work to you—we just handle the employment paperwork.

We Handle Compliance

We process payroll, remit taxes (CPP, EI, income tax), generate T4 slips, handle benefits administration, and ensure compliance with all Canadian employment laws and regulations.

You Receive One Invoice

Each month, you receive one simple invoice covering the employee's salary, employer contributions, and our service fee. No hidden costs, no surprises—just transparent, predictable billing.

What You Control

You maintain full operational control while we handle compliance

Hiring Decisions

You choose who to hire, conduct interviews, and make all hiring decisions. We don't recruit for you—we facilitate the employment process for candidates you select.

Day-to-Day Management

You assign work, set priorities, evaluate performance, provide feedback, and manage the employee's daily activities. They work for you, not for us.

Project Assignments

You decide what projects the employee works on, what technologies they use, and how they integrate with your team. Full project control remains with you.

Termination Decisions

You decide when to end the employment relationship. We handle the termination paperwork, ROE generation, and final payments according to Canadian law.

What We Handle

All compliance, payroll, and administrative tasks

Employment Contracts

We create legally compliant Canadian employment contracts that meet provincial employment standards and protect both parties.

Payroll Processing

We calculate and process payroll, including salary payments, tax deductions, and employer contributions (CPP, EI, QPP, QPIP).

Tax Compliance

We remit all required taxes to the CRA, generate T4/T4A tax slips, and ensure full compliance with Canadian tax requirements.

Benefits Administration

We can administer optional benefits like health insurance, retirement plans, and other employee benefits if you choose to offer them.

HR Compliance

We ensure compliance with provincial employment laws, workplace safety requirements (CNESST, WSIB), and all regulatory obligations.

Record Keeping

We maintain all employment records, time tracking, ROE generation, and documentation required by Canadian law.

Benefits of the EOR Model

Why U.S. companies choose the EOR approach

No Entity Formation Required

Skip the complexity and cost of forming a Canadian corporation. No need to register with the CRA, open payroll accounts, or set up provincial compliance.

Fast Onboarding

Hire Canadian talent in 24-48 hours instead of waiting 3-6 months for entity formation and setup. Get your team working quickly.

Full Compliance

We ensure complete compliance with all Canadian employment laws, tax requirements, and regulatory obligations. No compliance risks for you.

Cost Effective

Avoid the upfront costs of entity formation ($5,000-$15,000+) and ongoing compliance management. One simple monthly fee covers everything.

Scalable

Easily scale up or down as your needs change. Add or remove employees without the complexity of managing a Canadian entity.

Transparent Billing

One monthly invoice with no hidden fees. You know exactly what you're paying for: salary + employer contributions + service fee.

Frequently Asked Questions

Common questions about how the EOR hiring model works

Who owns the intellectual property created by the employee? +

You own all intellectual property created by the employee. The employment contract includes IP assignment clauses that ensure all work product, code, designs, and innovations belong to you, not to InfraDev or the employee.

Can I terminate the employee if needed? +

Yes, you have full control over termination decisions. When you decide to end the employment relationship, we handle all termination paperwork, notice requirements, severance calculations (if applicable), ROE generation, and final payments according to Canadian employment law.

What happens if there's a compliance issue? +

As the Employer of Record, InfraDev is responsible for all compliance issues. We handle CRA audits, employment law compliance, and any regulatory matters. You're protected from compliance risks because we're the legal employer.

How is this different from using a contractor? +

The EOR model provides a true employment relationship with full compliance, benefits eligibility, and employment protections. Contractors are self-employed, which can create misclassification risks and limit your control. EOR gives you employee-level control with contractor-level simplicity.

Can the employee work for other companies? +

The employment contract can include exclusivity clauses if you want the employee to work exclusively for you. Alternatively, if you're comfortable with them working for other clients, we can structure the contract accordingly. You decide the terms.

What if I want to convert to a Canadian entity later? +

You can transition from EOR to your own Canadian entity at any time. We'll help facilitate the transition, transfer employment relationships, and ensure a smooth handoff. Many companies start with EOR to test the market, then form their own entity once they've established a larger presence.

Ready to Start Hiring in Canada?

Learn more about our Employer of Record services and how we can help you hire Canadian talent quickly, legally, and cost-effectively.

Learn About EOR Services

Or email us at marc@infradevconsulting.com