Canada Employer of Record Services
Employee Benefits in Canada
Employer of Record Services Canada
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Canana Pension Plan (CPP)
Any employee working in pensionable employment will have pension contributions deducted from their pay by their employer up to the employee’s 65th birthday. It is the responsibility of the employer to calculate how much CPP to deduct, using the annual CPP contribution rates and maximums.
The employee is also required to contribute an amount equal to the CPP deducted from the employee’s remuneration. The maximum pensionable earnings will be provided each year by the CPP. Deductions are stopped once the contributions reach the maximum annual threshold.
| Maximum annual pensionable earnings | Basic exemption amount | Maximum contributory earnings | Employee and employer contribution | Maximum annual contributions for employee and employer | $61,700 | $3,500 | $58,100 | 5.45% | $3,166.45 |
|---|
Canada Healthcare Benefits
The Canadian Social Security System covers all provinces excluding Quebec which has its own system. The Canadian Social Security has two components of tax: Canada Pension Plan (CPP) and Employment Insurance (EI).
The Canada Health Act serves as the foundation for the federal government’s standards-setting for the country’s publicly funded healthcare system. Medicare refers to the publicly funded healthcare system in Canada.
There are 13 provincial and territorial health insurance plans instead of a single federal plan. Under this system, all citizens of Canada have fair access to physician and hospital treatments that are required for their health without having to pay out of pocket.
The management, coordination, and provision of health care services for local citizens falls under the scope of the province and territorial governments.
Canada Disability Benefits
Employees may be entitled to a monthly disability benefit via the Canada Pension Plan (CPP) if they meet the following eligibility criteria:
- are under 65
- have made enough contributions into the CPP
- have a mental or physical disability that regularly stops them from doing any type of substantially gainful work
- have a disability that is long-term and of indefinite duration, or is likely to result in death
Employers costs are as follows (these rates are based on non-Quebec employees):
| Benefit | Employers Cost | Annual Exemption | Threshold |
|---|---|---|---|
| Employer Health Tax | 1.95%* | - | - |
| Employment Insurance (EI) | 2.212% | - | $54,200 |
| Canada Pension Plan (CPP) | 5.45% *Deducted from gross pay + taxable allowances/benefits | $3,500.00 | $61,700 |
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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:
Find out how payroll works in Canada and what you can expect when it comes to salaries, bonuses and rates of pay
Enhance your understanding of what your employee is entitled to when it comes to Statutory Leave in Canada
Wondering what it’s like to work in Canada? We’ve got you covered in our extensive guide
We deliver a fully managed EOR Service in Canada, including payroll, hr and legal compliance.
Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.
Carol Oliveira
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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!