Canada Employer of Record Services

Payroll & Tax in Canada

A beginners guide to understanding payroll in Canada

Employer of Record Services Canada

Download our full Canada Employment Guide

Find out all about employing in Canada

How we can help

Our fully-compliant payroll services in Canada ensure your employees are paid on time, every time

Whatever the territory or region, you need to attract and retain the best talent. But different countries and different cultures mean different employee expectations.

Payroll is key for any business; paying the correct salary to your business’s employees is vital. Using Agility EOR means that your employees are paid on time, every time, whilst they are working in Canada.

Agility EOR offers the following payroll services in Canada:

what to expect

How does Payroll in Canada work?

Paying your staff

An employee must receive their wages on the usual payday set by their employer. Employees of AgilityEOR are paid on the last business day of each month, with the exception of those who live in British Columbia, where it is mandated that payments be made every 15 days.

Vacation allowance

Employees in Canada are entitled to a Vacation allowance which is calculated as a percentage of the gross wages earned during the "year of employment". The amount varies between 4% and 8%. Any vacation pay owed to an employee by the employer must be paid at the time the employee takes their vacation. If the employment ends and the employee is owed vacation pay, the employer must pay it within 30 days after the employee’s last day of work.

Bonus payments

Please be aware that under Canadian law, it is crucial to be precise about bonus requirements since, if not specified in the contract, incentives may be presumed to be due to an employee during a severance period or during a notice period. Our employment contracts have the necessary language in them to guard against this.

Canada Working Hours

The standard working hours of an employee in a federally regulated industry are eight hours in a day (any period of 24 consecutive hours) and 40 hours in a week (the period between midnight on Saturday and midnight on the Saturday that immediately follows).

Employees who are subject to federal regulations are all entitled to one full day of rest each week, which usually falls on a Sunday.   Generally, the maximum number of hours which can be worked in a week is 48.   There are some circumstances whereby this threshold can be exceeded for example;  emergency work, under an averaging plan or a modified work schedule. 

Canada Payroll Banner
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Business Culture in Canada

Canada is comprised of ten provinces plus three territories, as well having a mix of British, French and American influences.

Employment regulations in Canada are generally governed by the provincial and territorial authorities. However the federal government has jurisdiction over employers that are engaged in activities that are interprovincial in nature (federally regulated). 

That’s why engaging with a knowledgeable employer of record in Canada is your best way of reducing any risk associated with employing in Canada.

how we can help

Employer of Record Services in Canada

Comprehensive Private Healthcare in conjunction with a reputable leading Canadian provider
RRSP fund (Registered Retirement Savings Plan)
Salary, commissions/bonuses & benefits - agreed with the ‘workside’ employer and contractually included.
Ad-hoc support available around the clock to support you in the event of any disciplinary, grievance or other HR matters requiring urgent attention.

Wondering if expanding
in Canada is right for you?

Read on or speak to a member of our team now
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We are Canada EOR experts

We have extensive experience helping businesses expand their workforce in Canada. Take a look at our areas of expertise to find out more:

Learn more about how you can attract and retain staff in Canada with both statutory and enhanced employee benefits

Wondering what it’s like to work in Canada? We’ve got you covered in our extensive guide, including the do’s and don’ts

Enhance your understanding of what employees are entitled to in Canada

We deliver a fully-managed EOR Service, including payroll, hr and legal support in Canada.

Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.

Learn more

Frequently Asked Questions

Payrolling the employees is a key part of the service offered by an employer of record company. The EOR will calculate and remit all taxes, social securities and similar payments, on behalf of both employer and employee. The client will be invoiced in advance by the EOR company, for the total cost of the payroll.

Yes. Our clients are free to dictate the structure of the employees’ remuneration including any bonuses or commissions they wish to offer. In some countries, there is a statutory requirement to provide “bonuses”, for example in the form of Christmas or holiday allowances.

Yes. Agility EOR will calculate what pay is due upon termination of an employee, factoring in such things as any untaken leave entitlements.

We find that most of our clients are in the Tech, IT, Finance and Professional Services industries. However, we have acquired the skills, knowledge and experience to help all industries across the globe.

As a private company, we’re not beholden to shareholders or asset-shredding Private Equity targets. We aim to build long-term relationships with our clients. At Agility EOR, our approach is that we never forget that our business is all about people. Our Employer of Record solutions are tailored to each requirement, not a one-size-fits-all tech platform. We do the right thing by our clients and by the laws of each country we operate in. And we believe in openness; if we don’t feel we can offer you the best solution for a specific territory, we’ll say so. 

We pride ourselves on our personable-approach so once you enter your new employees details into our dedicated platform, we’ll arrange a call with you to go through the details of the employment contract where together we can review and amend to your requirements. We liaise directly with your employee to build a rapport and obtain the necessary information to hire them compliantly, and set them up ready for their first payroll.

We never stop delivering! Even if you’re employee has been onboarded and is happily working for you and being paid each month, we’re here to partner with you whenever you or your employees need us. Even your ex-employees may need our assistance for tax documents, proof of employment requests etc… Our service never stops!