Canada is divided into 10 provinces and three territories, including: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Quebec, Saskatchewan, and Yukon.
There are 3 main competent authorities in Canada:
Canada Revenue Agency (CRA)
Canada Pension Plan (CPP) contributions;
Employment Insurance (EI) premiums;
federal and provincial taxes (excluding Quebec provincial taxes);
the determination of pensionable, insurable and/or taxable earnings;
the determination of pensionable and/or insurable employment; and
the collection of unpaid CPP contributions, EI premiums, federal/provincial (excluding Quebec) taxes, GST/HST amounts and overpaid EI benefits.
Responsible for the administration of several federal government sponsored programs such as:
collecting Records of Employment (ROE); and
issuing social insurance numbers and passports.
Statistics Canada is responsible for collecting, analysing and reporting information pertaining to wages paid and number of persons employed.
Tax and Social Insurance
Employers are responsible for withholding both income taxes and social insurance contributions for employees.
Employers are obliged to deduct Canadian Pension Plan (CPP) deductions (for eligible employees) and Employment Insurance (EI) contributions.
Canadian employees enjoy up to nine national public holidays each year although some of these are province dependant:
New Year’s Day (1st January)
Victoria Day (Monday before May 25)
Canada Day (July 1st)
Labour Day (First Monday in September)
Thanksgiving Day (Second Monday in October)
Remembrance Day (11th November)
Christmas Day (25th December)
Boxing Day (26th December)
In addition to paid time off, employees are also entitled to vacation pay equal to at least 4% of their earnings for the year for which the vacation is taken. The employer must pay vacation to the employee in a lump sum before the employee commences his or her vacation.
How can PEO Worldwide support you and your employees in Canada:
PEO Worldwide work with in-country legal experts and our experienced and trained staff can easily guide you through the myriad of complex laws and regulations.
Each employee is issued with a comprehensive contract of employment.
An overview of the statutory requirements in Canada can be made available to you prior to contract offer (note - some of these vary depending on province).
PEO Worldwide can offer:
Comprehensive Private Healthcare in conjunction with a reputable leading Canadian provider.
RRSP fund (Registered Retirement Savings Plan).
both of which enable you to provide a fully competitive salary and benefits package for your employees.
Salary, Commissions/Bonuses & Benefits are agreed with the ‘workside’ employer and contractually included.
Ad-hoc support available around the clock to support you when you need it most in the event of any disciplinary, grievance or other HR matters requiring urgent attention.
Fully managed service to assist with routine HR tasks such as absence management, expense processing.
Regular updates and advice provided in order to ensure compliance with Canadian law (on request).
Fully compliant payroll funding process ensuring that employees and competent authorities are paid on time by electronic means.
Salary payments made to employees on a monthly basis as required in local currency (Canadian Dollars CAD).
Electronic Payslips provided to employees.
Statutory filing (Deductions at Source – DAS) and contributions remitted monthly to the Canadian Revenue Agency.
End of year reporting completed as standard.
We appreciate each situation and business is different. That is why we offer a consultative and bespoke solution to every client. Personalised job specifications, job offers and benefits packages are all agreed with you during the set up process. We know one size does not ‘fit all’.
Please contact us to schedule your initial consultation.